The Cost of Care: Why Childcare Is Breaking Oregon’s Economy

What’s more expensive than college tuition and just as hard to find? Reliable childcare in Oregon. For working parents, especially on the coast, the struggle isn’t just real—it’s overwhelming. And the ripple effects are hitting everyone, from local businesses to the state’s bottom line.

It’s been a busy first week back in the Capitol as we kicked off the 2025 Legislative Session. Lawmakers have hit the ground running, tackling a range of pressing issues. One big area of discussion? The impact the lack of childcare is having on Oregonians. This isn’t just a personal struggle for families—it’s an economic challenge that’s shaping the state’s workforce and productivity.

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The Backbone of Oregon’s Workforce

Here’s a question for you: how do you build a thriving economy when parents can’t work? Short answer: you don’t. Affordable, reliable childcare is more than a convenience—it’s the backbone of a functioning workforce. And yet, in Oregon, that backbone is breaking under the weight of rising costs, limited access, and policy gaps that leave families, particularly women and low-income households, to pick up the pieces.

So, let’s talk about the ripple effect this childcare crisis has on the broader workforce and why solving it could be Oregon’s golden ticket to a stronger, more equitable economy. And let’s bring it home—right here. To life on the coast.

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A Crisis Bigger Than Playroom Tantrums

Picture this: just about 62% of kids under six in Oregon live in households where all the parents are employed. Great, right? That means parents have jobs and income. But here’s the twist—there are only enough childcare slots for 22% of those kids. Yep, 22%. Families are left scrambling for options, and for many, there aren’t any.

It gets worse in rural areas, like Tillamook and Clatsop Counties, where childcare deserts stretch wider than a Sunday drive down Highway 101. Working parents along the coast often find themselves with even fewer options than families in urban areas. And, hold your hat, because if by some miracle you do find a spot, the cost might knock the wind out of you. Infant care in Oregon costs over $15,000 a year on average. For low-income families in coastal communities, that’s 34% of their household income. Just for context, the federal government’s benchmark for “affordable” childcare is 7% of income.

Consider this: the annual cost of childcare often rivals or exceeds the cost of tuition at Oregon State University (OSU). For in-state students, OSU’s tuition for a year of undergraduate studies is around $23,000—which, is many cases is less than the average cost of infant care in the state. This makes the comparison even starker for families on the coast, where wages are lower, and options are fewer. Imagine telling a parent that putting their toddler in daycare costs more than sending their older child to a respected university. It’s no wonder families are struggling.

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Who’s Paying the Price? (Spoiler: It’s Women)

Now let’s get real. When childcare isn’t an option, guess who steps back from the workforce? Women. In Oregon, moms with young kids are almost 25% less likely to work compared to dads in the same boat. See, it’s not just a “family issue”; it’s a systemic roadblock keeping women out of the labor market.

For families in Tillamook and Clatsop Counties, where tourism, fishing, and small business drive the local economy, this problem, again, hits especially hard. Many mothers in these communities take on seasonal or part-time work to make ends meet, but without reliable childcare, even these jobs can become impossible to maintain. For low-income families, the choices are even grimmer: work fewer hours, pay outrageous childcare costs, or quit altogether.

And that choice comes with consequences. A 2022 report from ReadyNation estimates the childcare crisis costs Oregon’s economy $1.1 billion annually.

That’s billion—with a “B”—in lost income, employer productivity, and tax revenue:

• $622 million in lost family income because parents can’t work full-time.

• $304 million in lost productivity from absenteeism and turnover.

• $174 million in tax revenue we could desperately use for, oh, I don’t know, literally everything else.

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Childcare as Oregon’s Economic Rocket Booster

Here’s the thing: fixing this isn’t just good for families—it’s an economic no-brainer. Studies show every dollar invested in childcare returns $2 to $4 in economic benefits. That’s because when parents can work, everyone wins—more income, more spending, less reliance on public assistance.

For coastal counties like Tillamook and Clatsop, the benefits would be even more pronounced. Imagine what a surge in workforce participation could mean for small businesses, tourism, and industries like fishing and forestry. These aren’t just numbers; they’re local livelihoods, family-owned businesses, and the vibrancy of our coastal towns.

County commissioners in Tillamook and Clatsop Counties have been doing great work to keep the conversation going about these challenges. They’re actively engaging with community members, businesses, and stakeholders to address the childcare crisis and explore creative solutions for their communities.

And businesses in these communities are stepping up. Take Tillamook Creamery, for example. Recognizing the impact of the childcare shortage on its employees and the broader coastal economy, Tillamook has partnered with other businesses, local governments, and stakeholders to better understand the problem and bring new childcare facilities and workers online. This collaborative approach could serve as a model for other communities looking to tackle similar challenges.

Other states are already proving it can be done. Take Washington’s “Fair Start for Kids Act.” Since 2021, it’s expanded subsidies and cut costs for families earning up to 60% of the median income. The results? More working parents, fewer turnover headaches for employers, and better outcomes for kids.

Oregon could take a page from Washington’s playbook—or better yet, write its own bestseller.

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How Oregon Can Step Up

Let’s break it down. Oregon has options to tackle this childcare crisis head-on:

1. Boost Subsidies: Programs like Employment-Related Day Care (ERDC) help low-income families afford care. Expand them. It’s that simple.

2. Support Employer-Sponsored Childcare: Give businesses tax breaks or grants to set up on-site childcare. Imagine your lunch break also including a quick hug from your toddler—win-win. Coastal employers, from seafood processors to hotel owners, could see big gains here.

3. Invest in the Workforce: Childcare workers are quitting because they’re underpaid and undervalued. Better wages and benefits could turn things around, making childcare both accessible and high-quality. This is critical for rural counties where attracting skilled workers is already a challenge.

4. Target Rural Areas: Childcare deserts are killing rural economies. Direct funding to areas like Tillamook and Clatsop Counties could bring relief to families and help local economies thrive.

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Closing the Gap, Growing the Economy

Here’s the bottom line: Oregon’s childcare crisis isn’t just a parenting problem. It’s an economic sinkhole swallowing potential workforce participation, productivity, and equity. Fixing it means empowering parents—especially women and low-income families—to work without choosing between their kids and their jobs.

For coastal communities, the stakes couldn’t be higher. Reliable childcare could mean more women rejoining the workforce, more small businesses staying open year-round, and stronger economic growth in towns that are often overlooked by statewide policies.

The payoff? A stronger, more resilient economy and a brighter future for Oregon’s families. Let’s stop treating childcare as an afterthought and start seeing it for what it is: the foundation of opportunity, growth, and progress.