Virginia is facing a child care crisis that threatens not only the stability of families but also the viability of businesses and the long-term health of our state’s economy. Families are increasingly struggling to find affordable, high-quality child care, which is essential for maintaining employment and overall well-being.
Addressing the root causes of this crisis is critical for businesses, policymakers and communities seeking lasting solutions. Effective strategies must encompass a range of initiatives — from expanding the availability of child care facilities to growing the child care workforce and boosting financial support for families and providers.
Collaboration across the private, public and nonprofit sectors is no longer optional; it is essential to driving substantive, lasting change.
Danville-Pittsylvania’s desert
As economic development specialists at Virginia Tech’s Center for Economic and Community Engagement, we recently completed a comprehensive study on child care access in the Danville-Pittsylvania County area. The results are alarming: Over half of the region qualifies as a “child care desert,” where the supply of child care options falls woefully short of demand. This troubling trend is mirrored across Virginia.
The consequences of these deserts extend far beyond individual families — they represent a significant impediment to the commonwealth’s economic growth and future prosperity. When parents cannot secure reliable child care, their ability to work is compromised, and businesses are forced to reconsider expanding or investing in these regions. Without addressing this issue, we jeopardize both our workforce and our economic potential.
In the Danville-Pittsylvania region, the shortage of child care providers has left over 800 children without care, with the largest gaps in service for infants and toddlers. This problem is poised to worsen, as the area’s under-5 population — currently 4,762 — is projected to grow by 7% by 2029.
The issue is made worse by the uneven distribution of child care facilities, particularly in rural and low-income areas, where such services are typically concentrated in only a few locations, leaving many families without nearby options. This trend is seen across the nation, with the greatest impact on lower-income families who struggle to find child care near their homes or workplaces.
Adding to the crisis, child care costs have surged by more than 30% in just the past five years, now rivaling the cost of in-state college tuition. For example, the average cost of a year of child care in Virginia ranges from $10,000 to $17,000, compared to Virginia Tech’s in-state tuition of $14,586. Families in the Danville-Pittsylvania area spend an estimated 25% of their household income on child care, far exceeding the 7% benchmark recommended by the U.S. Department of Health and Human Services.
Because of these high costs, many families are forced to make tough choices, such as cutting back on work hours or leaving their jobs altogether. The financial strain is especially hard on low-income or single-parent households, which spend an even larger portion of their income on child care.
Businesses are also feeling the pain. Child care challenges are a leading cause of absenteeism and employee turnover, costing Virginia businesses over a billion dollars annually. The urgent need for affordable, accessible child care options is clear.
Concerns about quality of care
Even when families do secure child care, concerns about quality persist. Low wages and limited benefits in the industry lead to high staff turnover. Nationwide, child care workers earn a median income below the living wage, leading to a staggering 49% turnover rate.
In areas like Danville-Pittsylvania, the challenges are even greater. Providers have little incentive to pursue professional development, despite opportunities offered by organizations such as the Center for Early Success and Danville Community College. Low wages mean few providers can afford to offer pay increases, and employers are hesitant to push for further training, as they need to keep their already-stretched businesses running.
Parents in Danville-Pittsylvania have expressed concerns about the quality of care available. Although most providers meet basic care standards, they often struggle to meet parents’ expectations due to limited resources. The quality of care that providers want to offer often exceeds the funding they receive, making it challenging to improve services.
Providers also can’t raise enrollment fees much because they already charge near the maximum that families can afford and often rely on subsidies to stay competitive. This creates a broken system in which providers are unable to deliver the level of care that families want.
A collaborative model
Some employers have started to support their own child care solutions. Businesses like Tyson Foods have opened their own center to provide child care. And it’s not just large companies taking the initiative. Floyd-based Red Rooster Coffee, for example, started Yellow Hen, which provides child care to employees and local residents. While these examples are fantastic, it is not realistic to believe that every company will be able to do something similar.
One interesting model we examined was a consortium-based model. In this model, businesses collaborated with local nonprofits and local governments to provide or subsidize child care for employees and local residents, either on-site or nearby. Employers worked with nonprofits to open a child care center. The businesses shared the costs to open and operate the center and outsourced the day-to-day operations to a nonprofit that would run the facility.
Additionally, local governments and economic developers can provide incentives to businesses to encourage them to open up their facilities to people beyond employees. This model benefits the businesses by ensuring their workforce has child care and benefits the local community by increasing the available care in the region.
Collaboration across sectors is essential to making meaningful progress in solving the child care crisis. All levels of government, private businesses and nonprofit organizations must work together to support child care providers and help families access affordable, high-quality and sustainable child care.
Dylan Andrews and Ashley Posthumus are economic development specialists with the Virginia Tech Center for Economic and Community Engagement. The center provides research and university connections to organizations and communities, helping them to think strategically and find a pathway to economic prosperity.