U.S. families spend between 8.9% and 16% of their median income on full-day care for just one child, with annual costs ranging from $6,552 to $15,600 nationwide in 2022, the most recent year for which data are available, according to a federal report released this week.
According to the updated National Database of Childcare Prices (NDCP) from the U.S. Department of Labor’s Women’s Bureau, which did a county-level analysis of childcare prices nationwide, the annual cost of care for one infant in a childcare center in New Jersey in 2022 ranged from $14,870 in Warren County to $16,984 in Morris County.
Adjusting those prices for inflation, the report estimates the cost of infant care in 2024 to range from $16,491 today in Warren County to $18,835 in Morris County. The complete data tables for all New Jersey counties can be found here.
Despite the high price of childcare for the 13.6 million U.S. parents who rely on paid caregivers, childcare providers still operate financially on the margins, and workers receive relatively low wages, the report produced by the DOL’s Women’s Bureau said.
In fact, prior to the pandemic in early 2020, the childcare sector was facing severe challenges related to financial viability, sustainability, and access and affordability for families. The pandemic intensified these challenges for parents and providers.
NJBIA Vice President of Government Affairs Althea D. Ford on Friday noted that testimony given by stakeholders at a recent legislative hearing on the childcare industry underscored how these businesses are struggling.
“What was made clear at the joint committee is the fact that what families are paying for childcare isn’t even what this childcare actually costs – it’s what the market can bear,” Ford said. “The true cost of childcare is closer to $26,000 and what ends up being sacrificed to keep prices lower are the wages and benefits for workers.”
To assess how much of a financial burden childcare has become for working families, the report compares childcare prices to median family income in 2,512 counties nationwide.
In New Jersey, Cumberland County families had the highest percentage of their annual income going to childcare for one infant (19.6%), followed by Hudson County families (17.4%). The price of infant childcare in Cumberland County in 2022 was $14,891 ($16,514 in 2024 dollars) and in Hudson County it was $16,758 ($18,585 in 2024 dollars).
“The fact that the median cost of center-based infant care is more than the median cost of rent should be of urgent concern,” said DOL Women’s Bureau Director Wendy Chun-Hoon. “Families are struggling and women are disproportionately impacted.”
Even part-day care for school-aged children (before and after school) comprises 8.1% to 9.4% of median U.S. family income: From $5,943 up to $9,211 for just one child. To put this into perspective, the median cost of a year’s worth of rent in the U.S. was $15,216 in 2022.
In New Jersey, the cost of center-based care in 2022 for one school-age child ranged from $6,631 in Camden County ($7,354 in 2024 dollars) to $7,895 in Hudson County ($8,756 adjusted for inflation in 2024), the report said. This represented 6.4% of median family income in Camden County and 8.2% of median family income in Hudson County.
However, when viewed as a percentage of income, Cumberland County families spent the most (9.1%) of their income on center-based care for a school-age child before and after school. For toddlers and preschoolers, Cumberland County families spent 19% of their income on childcare and 19.6% of their income on center-based care for infants.
To read more about the Nov. 14 joint meeting on childcare costs held by the Assembly Aging and Human Services Committee and the Assembly Children, Families and Food Security Committee, go here.
