More work, more childcare: the staggering amount we are spending

“We have seen that parents are increasingly under significant financial pressure trying to make ends meet. This is probably a reflection that households are trying to do what they can to increase their household income.”

Loading

Sam Page, chief executive of Early Childhood Australia, said childcare centres were finding it difficult to meet demand because of workforce shortages.

“They’re struggling to give families as many days and hours as they would like because finding it difficult to recruit and retain staff,” Page said.

A new childcare subsidy system takes effect in July, which is meant to make most families better off. However, many providers are raising fees at the same time, with some Sydney centres charging up to $190 a day for a baby.

Page said a mid-year fee increase was typical because staff wages rose in July, and noted the subsidy would also rise with indexation at the same time.

Last week the Australian Bureau of Statistics the number of hours worked across the economy was 7.2 per cent higher than the same period in 2022.

Loading

Part of that was driven by the fact a record high of 947,000 people now held multiple jobs. Allowing for population growth, it was one in 15 people, the highest rate since 1994.

Women’s workforce participation has also increased. Labour force and census data shows in 2022, the proportion of dual-earner families increased to 71 per cent, nearly double the level of 1979.

Dent said women in Australia had not been working full-time in the same numbers as women with comparable education levels around the world.

“There is capacity particularly among women to increase their workforce participation,” she said.

“Obviously, when anyone is forced into a position because of financial stress, that’s not necessarily ideal. But we do know that for women, maintaining connection to paid work does create additional economic security over the course of their life, which is a positive thing.”

The Morning Edition newsletter is our guide to the day’s most important and interesting stories, analysis and insights. Sign up here.