Despite the end in the recession and rising birth rates, one industry that has not grown is childcare. Instead, the industry is hiring workers at less than half the pace of the overall economy, having trouble finding qualified workers willing to earn minimum salaries while being expected to have existing education and training. In response, the demand for childcare is driving up the cost faster than inflation. In 40 states, the cost of full-time infant care is at least 10% of the median family income. At the same time, many states cut childcare subsidies during the recession and have not reestablished them.
The burden of childcare is being felt particularly hard by millennials who are at the time in their lives where having children would seem appropriate, but they are facing sluggish wage gains. As a result, more parents seem to be opting for staying home with their children. According to U.S. Census Bureau figures compiled by the Pew Research Center, in 1999 23% of mothers did not work outside of the home, but that number rose to 29% in 2012. During the same timeframe, the number of fathers who did not work outside of the home went from 1.25 million to 2 million. Other parents are looking to family members such as recently retired baby boomer grandparents to provide care. In 2011, approximately 27% of care was provided by relative. Still, other parents turn to unlicensed daycare providers or swapping care with other parents.