10 reasons why the childcare crisis is a wider labor market crisis

• Stepstone study shows: Inadequate daycare has a direct impact on the labor market
• 60 percent demand better childcare - but the reality is often different

Currently, there is a concerning shortage of hundreds of thousands of daycare places in Germany, with teachers and childcare staff are under an enormous pressure every day to look after the next generation.

These strains on Germany’s childcare provision reveal a much larger challenge facing our economy: the labor market simply lacks an urgently required workforce to remain globally competitive. By 2035, Germany will be seven million workers short. And yet, whilst facing this emending crisis, the nation still has a culture that sees at least one parent having to take on full responsibility for childcare - with this responsibility still falling on working women in the majority of cases.

This trend is illustrated in the latest findings from the The Stepstone Group, which has surveyed 2,000 working parents with children under the age of 10.

"We must finally take action and ensure that every child gets the care they deserve," says Dr. Tobias Zimmermann, labour market expert at The Stepstone Group. "It is unacceptable that the lack of childcare should be borne by parents - and mothers in particular - who have to put their careers on the back burner. Germany has a lot of catching up to do here. In view of the shortage of labor and increasing demographic pressure, we cannot afford to do without staff - because childcare is not guaranteed."

10 reasons why the daycare crisis is a labor market crisis:

1. 44 percent of parents have reduced their working hours after parental leave - among mothers, this figure is as high as 74 percent.

2. One of the main reasons for reducing their working hours is that they have not found available daycare (33%).

3. Two thirds (66 percent) of parents who have reduced their working hours would prefer to work full-time or close to full-time - but are often unable to do so because childcare is not available.

4. Only one quarter of respondents say that their employer provides them with sufficient support to fulfill their childcare obligations.

5. More than one in four (29 percent) are considering leaving their job because they do not receive sufficient childcare support from their employer to be able to combine children and a job.

6. 40 percent have not returned to their employer after parental leave because they could not reconcile their job and parental responsibilities.

7. Almost 20 percent even have reservations about mentioning their childcare responsibilities at a job interview.

8. 31 percent feel hindered in their professional development because they have to look after their children. Among mothers, almost one in two (46 percent) say this.

9. Almost a third of parents are dependent on family support - for example from grandparents - in order to secure childcare.

10. There is a growing desire for political action: around 60 percent are calling for better childcare to help them balance work and family life. 70 percent call for more flexible labor laws.

About the study „Working Parents & Beyond“
In our fast-paced workplace, the balance between professional demands and personal well-being is becoming increasingly important. How should work be structured to harmonize career, family life and everyday life? In October 2023, The Stepstone Group surveyed around 12,000 people in Germany, including around 6,000 parents and 2,000 with children under the age of 10, about challenges and opportunities in the area of work-life balance. The survey is representative of the German working population by age and gender.