Easily Accessible Childcare Gives Boost to Michigan's Economy, Study Shows
October 6, 2025

Amanda Forrester / news@whmi.com
A new study from Michigan State University looked at the effects expanded childcare access had on the state’s workforce.
The study, conducted in partnership with the Michigan Department of Lifelong Education, Advancement and Potential, showed that families living further from licensed childcare providers were “significantly less” likely to be part of the workforce. They used data from the Child Care Mapping Project.
Mothers and young families are especially affected by the availability of childcare.
“Access to high-quality, affordable childcare is fundamental for families and communities to succeed,” Director of MiLEAP Dr. Beverly Walker-Griffea said. “Every parent deserves the opportunity to work, every child deserves the support to learn and grow and Michigan’s economy deserves a strong, resilient workforce. Through MiLEAP investment in early education and childcare, we are creating real opportunities for families to succeed today and for communities to thrive tomorrow.”
The study also showed the economic consequences for Michigan. According to the study, for every additional mile away from a licensed provider, there was a 2.7& decrease in women’s labor force participation, a 2.2% decrease for two-parent households and a 1.7% decrease for single-parent households. These cost the state an estimated $2.88 billion annually, with $2,3 billion in employer losses and $576 million in lost state tax revenue.
“As researchers on the Child Care Mapping Project, our goal was to equip Michigan communities with the data they need to make informed decisions about childcare access and investment,” Dr. Jamie Wu, Associate Director of the Community Evaluation Program in MSU’s Office of University Outreach and Engagement and research assistant professor in the Department of Human Development and Family Studies, said. “Our findings show that childcare is not just a family issue – it’s a workforce and economic one. Expanding access to childcare helps more Michiganders participate in the workforce, strengthens family stability and reduces costly disruptions for employers and the state’s economy.”
Officials said this strengthens the need for easily accessible childcare.
“The findings from MSU’s study reinforce what we see every day in our work with families and childcare providers across Michigan: when care is unavailable, families–especially mothers–often must take a step back from employment,” Emily Laidlaw, Deputy Director at MiLEAP, overseeing the Office of Early Education, said. “That’s why MiLEAP continues to expand access through initiatives like PreK for All, MI Tri-Share, Early Learning and Family Supports and Child Development and Care scholarships, to make sure families have the support they need to succeed.”
Some of these initiatives include:
- PreK for All – Michigan’s initiative to ensure every 4-year-old has access to free preschool, saving families up to $10,000 annually in childcare costs.
- MI Tri-Share – A nationally recognized program where the cost of childcare is shared equally between the state, the employer, and the employee. Tri-Share served more than 800 families and over 1,000 children statewide, resulting in total family savings of over $10.2 million in childcare costs since the start of the program.
- The Child Development and Care Scholarship, which helps low-income families and working families cover the cost of childcare, supporting over 27,500 families with no- or low-cost care.
- Early On – Michigan's system for helping families of infants and toddlers, birth to age 3 who have developmental delays and/or disabilities.
More information can be found at the links below.