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Childcare Turnover 88% in South Dakota; Study Recommends Raising Pay to Match K-12 Teachers

Governor Kristi Noem had better hope some of those people she says like her plumber and dentist ads want to work in child care. The final report of the Sioux Falls Childcare Collaborative finds South Dakota’s child care centers saw 88% staff turnover in 2021:

According to a report by the Minneapolis Federal Reserve Bank, the national average annual turnover rate for early childhood educators is 30%, which is considerably higher than any other occupation in the United States. What is even more alarming is that the rates in South Dakota are much higher. According to a recent study published by the Department of Social Services, the turnover rate for direct care staff in South Dakota was 88% [footnotes converted to links; Sioux Falls Childcare Collaborative, “Community Childcare Initiative Final Report,” June 2023, p. 16].

Losing 8 out of 9 employees each year is the predictable result of low pay:

One factor contributing to the high turnover rate among childcare workers is low wages. Childcare workers are in the bottom 2% of pay across all occupations nationally. The mean hourly wage for childcare workers in Sioux Falls as of May 2022 was $12.34 (approximately $25,760 annually), which is lower than every single listed occupation for Sioux Falls other than “dishwashers” and “ushers, lobby attendants, and ticket takers,” who had mean hourly wages of $12.28 and $12.32, respectively. For further comparison, fast food workers made $13.18 per hour and housekeeping cleaners made $13.76 per hour on average. This low wage makes a nearly impossible landscape for childcare providers to attract and retain qualified workers, which also impacts the quality of care and education that children receive [emphasis original, links added; SFCC, June 2023, p. 17].

It’s hard to enjoy workforce freedom if you can’t find a daycare with enough staff to mind your munchkins.

Among other policy changes, SFCC recommends paying childcare workers what we pay K-12 teachers… and when raising childcare wages to match our nearly last-place teacher pay represents progress, you know we’re in a really deep hole.

20 Comments

  1. P. Aitch 2023-06-30 08:46

    $12.34 is 210 Mexican pesos per hour. The average wage for childcare workers in Mexico is 110 pesos per hour. If SD could learn to treat new Americans with respect and dignity you could attract the workers you need.
    Problem being that workers from Mexico are very proud people and don’t put up with disrespect while the conservative majority in SD sorely needs a group to feel and act superior to.
    So suffer the consequences and leave your kids home alone then if you can’t act nice to new Americans.

  2. Donald Pay 2023-06-30 10:54

    When I worked in childcare in the early 1970s, you began at minimum wage. You might get a bump every year. I worked there for 2.5 years, while taking college courses at night. I was a teacher assistant, meaning I didn’t have to think up a lesson for the day, except when I had to because the teacher was sick. I was a tricycle fixer, a snow shoveler, a lawn mower and leaf raker. I’d do minor maintenance and mop the floors. I didn’t have to clean the bathrooms, except when kids had “accidents,” after which I had to clean everything from bums to toilet seats to floors. Nap time was difficult, because I wanted to sleep, but couldn’t. I did first aid and comforted children who were sick, had owies, or wanted mommy. The funnest job was being chased by kids across the playground. The next funnest was reading stories to the kids, where I got to work on my theatrical skills. I became very good at funny voices. I still remember many of the kids. It was great practice for being a Dad. The pay sucked, but I loved the kids.

  3. P. Aitch 2023-06-30 11:38

    Great story, Donald. #grins

  4. O 2023-06-30 22:04

    That mean hourly wage seems pretty far off from what is being charged for child care (times the number of children being watched/charged for). don’t tell me that the owner class is lining its pockets with the toil of its workforce (again).

  5. Mark B 2023-06-30 22:20

    If the goal of coservative MAGA / christian nationalism is to legislate more white christian babies, sounds like this will be a bigger need in the future… unless of course they force mothers back to their ‘proper God ordained place’ in the home to raise them. Id normally say that with a wink, but with the Court being what it is….

  6. John 2023-06-30 22:24

    The military has a mere 33-40% turnover in a year. (It’s 50% in a one year tour area like South Korea or the military’s overseas short tour deployments. That’s insane. There is no unit cohesion or meaningful team building.) We in the military were jealous of high school and most college coaches in that they often had players who knew each other and may have worked together for years. An 88% turnover is insane and a formula for disaster for kids, and eventually for our society.
    Do not count on the republican boomer pro-birthers to care.

  7. John 2023-06-30 22:28

    K-12 teachers, daycare workers, and highway patrol troopers ought be on the same pay and retirement schedule. Respect them all. Cherish them all. They all impact the future of society.

  8. P. Aitch 2023-06-30 23:15

    Mark B has a proper understanding of conservatives view of today’s women.
    A tradwife (a neologism for traditional wife or traditional housewife), in recent western culture, typically denotes a woman who believes in traditional sex roles and a traditional marriage. Many tradwives believe that a woman does not lose rights by choosing to take a traditional role in marriage.
    https://en.m.wikipedia.org/wiki/Tradwife

  9. Ben Cerwinske 2023-07-01 08:35

    O-I work in childcare (for about 20 years, usually in the summers) . Nobody that I’m aware of is making a bunch of money. I’m not dismissing the fact that childcare takes a huge chunk out of people’s budgets, that’s true. It’s also true that we don’t charge the rate that would accurately reflect the value we provide to families. It’s actually cheap…

  10. O 2023-07-01 08:52

    Ben, my comment was in NO way intended to slight child care workers. Instead my issue is that like many other industries, many times the price asked for services seldom passes all the way through to the actual ones doing the crucial work. I see child care as one of the essential services that needs to be socialized so that the profit can be removed and passed along to the workforce already contributing to the productivity of the US.

  11. Ben Cerwinske 2023-07-01 10:01

    O-No worries. I agree with your solution. I’m just saying that in the two places I’ve worked, I’m not aware of any higher up making more money that I felt was disproportionate like in other industries.

  12. P. Aitch 2023-07-01 10:45

    There’s really BIG money in childcare. Believe it!
    KinderCare Learning sets IPO terms, as the profitable company could be valued at nearly $3 billion. – Market Watch Published: Nov. 8, 2021

  13. Algebra 2023-07-01 11:03

    If taxes were not so high, most families could afford to have one parent stay home and take care of the kids. Add up your federal income tax, your FICA tax (don’t forget what your employer contributes, it’s 15.3% total) and all your state and local taxes. It’s shocking.

    Excessive taxation caused this problem; don’t expect government to solve a problem it created..

  14. P. Aitch 2023-07-01 11:22

    @Algebra : Wisdom has been chasing you but you’ve always been faster.
    *Higher taxation contributes to making America better and Americans more wealthy in several ways:
    1. Infrastructure and Public Services: Higher taxation provides the necessary funds to invest in and improve infrastructure, such as roads, bridges, schools, and healthcare facilities. These investments create jobs, boost economic growth, and improve the overall quality of life for all Americans.
    2. Education and Research: Increased tax revenue is allocated towards enhancing education and research programs. This investment leads to a better-educated workforce, increased innovation, and advancements in technology, all of which contributes to economic growth and prosperity.
    3. Social Programs: Higher taxation supports social programs aimed at providing assistance and support to those in need, such as welfare, healthcare, and unemployment benefits. These programs help to reduce income inequality and ensure a basic standard of living for all Americans, ultimately promoting social stability and well-being.
    4. Government Investments: With higher tax revenue, the government invests in sectors that can stimulate economic growth and create job opportunities. This involves funding entrepreneurship programs, supporting small businesses, and investing in renewable energy and sustainable infrastructure, all of which drives economic development and creates wealth for individuals and the overall economy.
    5. Balanced Budget and Debt Reduction: Higher taxation helps reduce budget deficits and national debt, as increased revenue lowers the need for borrowing and interest payments. A balanced budget and reduced debt helps stabilize the economy, enhances investor confidence, and creates an environment conducive to long-term economic growth.
    – It is important to note that the effectiveness of higher taxation in making America better and increasing individual wealth depends on the efficient use and allocation of the tax revenue by the government.
    *In Short: The Democratic Party’s overall transparency, accountability, and responsible fiscal management are essential factors in ensuring that higher taxation benefits the country and its citizens.

  15. Ben Cerwinske 2023-07-01 11:28

    P.Aitch-Of course there can be big money in childcare, but it’s not representative (this article lists it as 10% of the market). I work at a non-profit. Nobody’s making a lot of money, but people still think what we charge is expensive. I understand it’s difficult for people to pay for, but that’s not our fault. If anything we’re making a sacrifice.

    https://earlylearningnation.com/2022/04/against-for-profit-child-care-chains/

  16. P. Aitch 2023-07-01 11:51

    @Ben – There’s a solid economic reason why Kindercare isn’t in South Dakota. It’s also why you don’t make squat.
    But it’s your choice where you live, innit?
    SD is all strung out on “hopium” (the metaphorical substance that causes people to believe in false hope).
    – Although 76 percent of the children under the age of six in South Dakota live in a household where all the adults are engaged in the labor force, 44 percent of children under age six still live in families with economic resources that place them below 200 percent of the federal poverty line.
    – That’s 1.5 times the rate of adults older than age 25 living below the same poverty threshold.
    – Children in the state are also 1.6 times as likely to experience food insecurity.

  17. Ben Cerwinske 2023-07-01 12:19

    P.Aitch-It is my choice to live here. I feel I have a strong connection to my community and intend to stay as long as I can handle it. You have a choice to continually post on this blog despite not living here and suggesting we’re beyond hope. That’s much more puzzling than my decision to stay in SD.

  18. P. Aitch 2023-07-01 12:50

    @Ben – I understand your mindset. Thanks for sharing.

  19. Jake 2023-07-02 16:23

    I notice, that when it comes to matters such as this posting, that the weird words and illogical of the entity grudz-are nowhere to be found. especially, his hatred for unions and help for the people like the child-care workers who are at the mercy of the low-wage state of SD, yet to be given all the “rah-rah-rahs” of our erstwhile governess of all the support they deserve (but don’t get)

  20. All Mammal 2023-07-02 17:56

    Not only do daycare business owners and providers suffer from this blowed-out turnover rate, but the ones most to get the smelly end of the stick are the kids. Their first experience being left with strangers really knocks them off their foundation. Just when they adjust to their new caretaker, some new broad is their to greet them in the morning instead. Then another one after that! The last one looked funny and now this new one smells funny. Uh-uh. This is not conducive to healthy growth and development. It is hard to feel confident when you’re not sure if you are even safe. It is known that learning takes a great deal of confidence in the least restrictive environment.

    Having a new stranger there when you drop your kid off isn’t going to facilitate focus in the workplace either. People who take the lowest-paid jobs and have inconsistent work histories aren’t exactly the Mary Poppins we should be handing our most precious bouncing bundles to. No offense to childcare staff. I’ve been there and know some of the coox I worked with were borderline. It is a bloody war zone some days and a commendable thing that childcare providers always make it work. I used to consider the x’s and o’s my compensation. And my bonuses were stealing food off their plates. Haha.

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