New report charts evolution of LDC supply in ECEC, highlights displacement of not for profit services over time

Excerpt

A new report released by economics research and advisory firm, Mandala and The Front Project provides some notable new insights into how the composition of the long day care (LDC) sector has evolved over time from a geographical and governance perspective. 

The Paving the Path report examines in some detail the roots of rising demand for LDC in Australia and how the supply response by the market has been dominated by for profit operators which in turn has seen not for profits (NFPs) shrink despite their superior quality and affordability characteristics. 

In particular the report makes the following key points:

• Demand for LDC – Demand for LDC over time has been driven by three key drivers; a 27 percent increase in female workforce participation since 1980, a 528,000 jump in children under six years of age and 14 per cent increases per annum in federal government expenditure improving affordability. 
• Supply of LDC – Since 2013, there has been a 69 per cent increase in the number of LDC places, (from 401,000 to 675,000) and a 43 per cent increase in the number of LDC licensed services. Australia now has around 31 LDC places per 100 children, a 64 per cent increase from 19 LDC places per 100 children in 2013.

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