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New MSU study highlights how expanding child care access strengthens Michigan's workforce

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Author: 
Michigan Department of Lifelong Education, Advancement, and Potential
Format: 
Press release
Publication Date: 
2 Oct 2025
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Excerpts

The Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP) today announced a new study from Michigan State University (MSU) highlighting how access to child care directly affects parents’ participation in the labor force, especially for mothers and young families. Using data from the Child Care Mapping Project, funded by MiLEAP as part of its Caring for MI Future initiative, the study shows that families living farther from licensed child care providers are significantly less likely to participate in the workforce.

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The MSU study found that limited access to licensed child care reduces workforce participation, particularly for women, and highlights the economic consequences on Michigan’s workforce and economy.  According to the study, families living farther from licensed child care providers are significantly less likely to participate in the labor force. On average, every additional mile away from a licensed provider correlates with 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 child care access-related disruptions cost Michigan an estimated $2.88 billion annually— $2.3 billion in employer losses and $576 million in lost state tax revenue. 

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These commitments take shape through several key programs and initiatives that are helping Michigan families every day:

  • 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 child care costs.
  • MI Tri-Share – A nationally recognized program where the cost of child care 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 child care costs since the start of the program.
  • The Child Development and Care Scholarship, which helps low-income families working families cover the cost of child care, 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.

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