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Child Care Service Owners

Outlook

Employment for self-employed preschool and childcare center directors is expected to grow faster than the average for all occupations through 2032, according to the U.S. Department of Labor. More women than ever are part of the workforce; of those who have children, many take only an abbreviated maternity leave. The number of children under 18 is expected to increase from approximately 73.4 million in 2018 to nearly 75.7 million in 2030. The number of children who are of preschool age is expected to grow, although their share of the overall population should remain stable. Consequently, a larger number of working parents will continue to need help caring for their children.

In addition, a continued focus on the importance of early childhood education—specifically preschool—should increase demand for childcare centers. Early childhood education has become widely recognized by government officials, educational advocacy groups, parents, and companies as crucial for a child’s intellectual and emotional development. Indeed, corporations have tried to open their own day care centers for the children of employees but haven't always had much success. Often these corporations turn to outside sources and contract with independent care centers to meet these child care needs.

On the other hand, the increasing cost of childcare and the increasing number of stay-at-home parents may reduce demand in the child daycare services industry. In addition, staffing problems in general plague the child care industry, as centers struggle to find reliable, long-term employees. Other concerns of child care centers include providing better child care for low-income families; making child care more inclusive for children with disabilities; and possible competition from state-funded pre-kindergarten programs.

On the bright side, though, licensed child care centers continue to open and provide opportunities for those wanting to run their own businesses. Those centers that offer a number of services, such as after-school programs for older children and computer instruction for children at a variety of age levels, should have the most success and continue to draw new clients.

Child care service owners and directors with formal postsecondary education (such as a bachelor’s degree) and certification should have better job prospects than those with only a high school diploma.