Lack of affordable child care in Montana pushing workers out of labor force

Billings, Montana – For the typical American family, daycare costs can be insurmountable. The average cost of infant care in a center-based program in Montana in 2020 was 103% more than the average annualized cost of rent, according to Child Care Aware of America. Due to a lack of accessible services, workers in Montana choose to care for their children themselves rather than paying for child care.

In order to keep good employees, employers are starting to realize how important childcare is. Granite Health and Fitness, which is located at 3838 Avenue B, is one company in Billings attempting to combat the rising costs.

One gym worker claimed that the childcare program her place of employment provides has made a significant difference.

“I actually moved here from Bozeman and childcare was so expensive there, and I know it is here as well. I was a stay-at-home mom up until this position came into my life because it was unaffordable. That was my choice,” said Karina Croaker, the corporate sales director and front-end manager at the gym, on Tuesday. “I would say it’s helped me a lot, I’ve been able to grow my position here exponentially.”

Granite is using innovative methods to attempt and recruit workers by providing free childcare.

“As long as you work a minimum amount of hours per week, we offer daycare to all of our employees here,” Croaker said.

But this kind of business is the exception.

Nearly 70,000 parents in Montana are not fully engaging in the workforce owing to a lack of childcare, and 40% of Montana employers claim they are unable to keep competent staff due to the escalating expenses, according to Montana Child Care Business Connect (MCCBC).

“The cost of child care is not only high in Montana, it’s high across the nation,” said Rhonda Schwenke, the program director for Montana Child Care Business Connect. “We know on average households pay just a little over $16,000 in child care annually. If you have multiple children in childcare, it adds up.”

Childcare providers are assisted by Montana Child Care Business Connect, which has a contract with the state health department, in growing their companies.

“When there aren’t strong business practices or financial planning in place, people kind of just come and go because it’s very expensive,” Schwenke said. “The whole business model of child care is so expensive, which is why it costs families so much.”

But until that economic model is completely revamped, many parents will still find it difficult to afford child care.

“It’s a tough business, but it’s necessary to the economy,” Schwenke said. “Just thinking about alternate revenue sources, how can they bring in more revenue without raising rates for families.”

Thankfully, some companies are doing more, like Granite Health and Fitness.

“It gives you an opportunity to get your foot in the door,” Croaker said. “I know a lot of stay-at-home moms or even stay-at-home dads aren’t able to work. It’s going to help parents grow in their career.”