Childcare Workers and Preschool Teachers Face Below-Average Earnings

Early childhood development is crucial to a child’s well-being and outcomes later in life. Childcare workers and Preschool teachers are two of the main occupations involved in the earliest years of a child’s life. Individuals in these positions are expected to understand needs, educate, and foster the development of young children. Instructing, active listening and learning, social perceptiveness, and learning strategies are just some of the many skills necessary to perform well in each of these jobs.

The Michigan Childcare Industry Workforce Analysis report provides background information on these positions and can support decisions regarding employment needs within early childcare in the state. This summary provides some of the report’s key insights. 

Data in this report may differ from other statewide reports related to early childcare and education because it uses federal designations for all data and analysis. This allows for direct comparison to other occupations and states and provides time series data.

Contact the Michigan Center for Data and Analytics with any questions about the data sources used in this report.

Read and download the full report. 

Note: This summary will use Preschool teachers as a shortened version of the full occupational title, Preschool teachers, except special education, for all data and analysis.

On average, Childcare workers and Preschool teachers earned 61 and 78 percent of what a typical Michigander earned in 2023, respectively.

Median Annual Salaries in Michigan by Occupation and Year

Source: Occupational Employment and Wage Statistics, Michigan Center for Data and Analytics

Median annual salaries for both Childcare workers and Preschool teachers have increased since 2013, as have statewide averages. Between 2013 and 2023, annual earnings for Childcare workers and Preschool teachers increased by roughly $9,000 and $7,800, trailing the Michigan median increase (nearly $12,300). In 2023, Childcare workers made approximately 61 percent of what the typical Michigander earned in annual income. This number has slowly ticked up from 57 percent in 2013. Preschool teachers earned, on average, 83 percent in 2013 to 78 percent in 2023 of average statewide earnings. This is a small but notable decline over the period.

Roughly three-quarters of the Childcare workers (ages 16+) in the state have some college, no degree or less as their highest level of educational attainment. Nearly half of the Preschool and kindergarten teachers (ages 16+) in Michigan hold a bachelor’s degree or higher.

Michigan Childcare workers and Preschool and kindergarten teachers (Ages 16+) Employment by Educational Attainment

Source: 2022 Public Use Microdata, American Community Survey, U.S. Census Bureau
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Educational attainment among those employed as Childcare workers in Michigan is much different than that of Preschool and kindergarten teachers or state averages. Roughly three-quarters of the Childcare workers ages 16 and older in the state have some college, no degree or less as their highest level of educational attainment. This is on par with the typical education requirement for this occupation (a high school diploma or less) as defined by the U.S. Bureau of Labor Statistics. 

Preschool and kindergarten teachers are closer to Michigan averages in some educational attainment categories than Childcare workers. Despite Preschool teachers having a typical education requirement of an associate degree, there are far more Preschool and kindergarten teachers with a bachelor’s degree or higher. Nearly half of these teachers ages 16 and older have a bachelor’s degree or above, compared to just 35 percent in Michigan.

Note: Due to data limitations, Preschool teachers are combined with Kindergarten teachers by the U.S. Census Bureau.

Median hourly wages for Childcare workers and Preschool teachers are below the Michigan average earnings for every level of education.

Michigan Median Wages by Typical Educational Attainment Compared to Hourly Median Earnings for Childcare workers and Preschool teachers

Source: 2023 Occupational Employment and Wage Statistics, Michigan Center for Data and Analytics; Typical Education and Training Requirements, U.S. Bureau of Labor Statistics
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There are no educational attainment levels where the typical earnings of Preschool teachers and Childcare workers are comparable or better than statewide averages. An individual with a high school diploma or equivalent in Michigan can expect to earn a median wage of $21 per hour. This is more than $7 per hour higher than the median for Childcare workers, who are expected to have at least a high school diploma but often hold greater levels of attainment. Comparatively, the average earnings for those with a bachelor’s degree in Michigan is more than $20 per hour greater than the median for Preschool teachers.