Addressing Inequities in the Child Care Industry is Critical to Michigan's Future

New Report Reveals Wage Disparities, Growing Demand for Child Care Workers

Lansing, Mich.— Early childhood education sets children up for lifelong success, prepares them for good-paying, in-demand jobs and strengthens Michigan’s workforce and economy. However, a new report on Michigan’s child care industry shows that while demand for child care workers is high, significant barriers threaten the industry’s outlook that could impact the state’s workforce and economy in the long run.

The report was researched and developed by the Michigan Center for Data and Analytics with support from the Michigan Department of Labor and Economic Opportunity (LEO).

Low wages, workforce shortages and a lack of Registered Apprenticeship programs are among the key challenges that must be addressed to sustain Michigan’s child care industry, set children up for success and get parents back into the workforce.

“If we want to build a strong and skilled workforce, we have to invest in children early, and that starts with a strong child care industry,” said LEO Director Susan Corbin. “Engaging kids at a young age sets them on the path to success and investing in early childhood education careers gives parents the support and confidence they need to get back to work. Supporting child care workers and growing the industry means supporting Michigan’s families, workforce and economy.”

As Michigan continues to focus on workforce development and economic growth, ensuring fair wages, professional support and career advancement for childcare workers is essential.

A link to the report can be found here. Key findings from the report include:

• Child care workers in Michigan earned just 61% of the state’s average wage in 2023, while preschool teachers earned 78%—making it difficult to attract and retain workers.
• Employment for child care workers is projected to increase by 2.0%, and PreK teachers by 4.3%—both far exceeding Michigan’s overall employment growth projection of 0.6%.
• Nearly 50% of PreK and kindergarten teachers hold a bachelor’s degree or higher, yet their earnings remain disproportionately low compared to other professions requiring similar education and training.
• The child care workforce is disproportionately composed of women, young workers and Black workers, contributing to systemic inequities in wages and career advancement.
• Over the past decade, PreK teacher employment grew by 24%, while the number of child care workers declined by more than 5%, highlighting ongoing workforce shortages.
• The cost of child care remains a major financial strain, with single-female-led households in Michigan spending over 30% of their annual income on child care.
• Michigan’s population of young children has declined by approximately 10% since 2010, a trend expected to continue through 2050. Regardless, there are still expected to be roughly half a million children under five in the state.
• There are roughly 18,400 active Registered Apprenticeships in Michigan as of 2023 and just under 100 of those are child care workers.

The Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP) is focused on strengthening Michigan’s child care industry and expanding access to early childhood education. Recent efforts to build the child care workforce include a pilot program to increase wages for child care professionals and awarding scholarships to more than 1,900 early childhood educators. In addition, the department lowers the cost of child care for families through MI Tri-Share and the Child Development and Care Scholarship.

"Child care is the backbone of our economy, and MiLEAP is committed to working with partners across the state to expand access to affordable child care to benefit children, families, employers, and the state’s economy as a whole,” said Dr. Beverly Walker-Griffea, director of MiLEAP. “MiLEAP will continue to support child care professionals, so that they can continue their important work supporting Michigan children and families each and every day.”

In her fiscal year 2026 budget recommendations, Governor Whitmer included $19 million to expand Registered Apprenticeships. LEO and MiLEAP remain dedicated to addressing the inequities outlined in this report and working with stakeholders across the public and private sectors to support the child care industry. This includes exploring policy solutions to improve wages, expanding access to training and professional development opportunities and advocating for increased investments in early childhood education.

For more information, visit Michigan.gov/AllAccess and Michigan.gov/MiLEAP.

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