Expanding Childcare Access, Affordability Could Unlock $12B in Annual Economic Gains for Arizona

Addressing the accessibility and affordability of childcare in Arizona could generate $12.4 billion in annual economic output, support more than 115,000 jobs statewide, and give Arizona families up to $9,300 more per year in household income, according to new findings from Unlocking Potential: Turn Arizona’s Priorities into Economic Gains, released by Center for the Future of Arizona (CFA).

Conducted by Rounds Consulting Group, the study quantifies the measurable returns Arizona could realize by addressing voters’ priorities, including accessible and affordable childcare. It finds that childcare isn’t just a family issue — it’s vital to workforce participation, continued education and training, and long-term growth.

Childcare access and affordability is one of five voter priorities analyzed in Unlocking Potential — the first-ever economic analysis of the Arizona Voters’ Agenda. Through years of research, CFA has found that voters across political and generational lines not only agree on high priority topics but also want long-term planning and decisions that move beyond political cycles. Other areas analyzed in this series include dual enrollment, post-secondary attainment, housing affordability, and transportation infrastructure. The new findings paint a picture of how, together, these priorities form essential infrastructure for Arizona.

“Arizonans have been consistent in their view that childcare affordability and availability are real barriers to returning to work or school, and yet they’re key to education, career advancement, and workforce participation — the very things that build our state's long-term competitiveness,” said Dr. Sybil Francis, Chair, President & CEO of CFA. “Voters clearly understand childcare is essential for families, for our workforce, and for Arizona’s economy. This is not just a family issue or a feel-good issue; it’s about thriving families, a strong workforce, and the kind of Arizona people want to live and work in.”

Key Childcare Access & Affordability Findings at a Glance
The analysis reveals the broad and lasting economic benefits:

• $12.4 billion in total economic output: The total boost to Arizona’s economy from more parents being able to learn, work and earn, employers gaining reliable workers, and increased spending.
• 115,000 jobs supported statewide: Both jobs created in the childcare industry and those supported across the broader economy when parents can work or return to work. It also reduces costly absenteeism and turnover for employers.
• $465 million in new state and local tax revenues annually: Economic gains ripple through local communities, increasing spending and taxes that fund public priorities.
• $9,300 more per household each year: Families could save through reduced care costs and greater workforce participation, providing financial stability and boosting consumer spending.
• Supports continued education and upskilling: Allows more parents to pursue higher education or job training, helping fill workforce gaps and strengthen the long-term talent pipeline.

“When parents can access quality care, employers gain reliability, businesses thrive, and children get the foundation they need for lifelong success,” Dr. Francis added. “Our goal in releasing this analysis is to help leaders and decision-makers see the scale of opportunity and use it to guide smarter, long-term decisions and actions that reflect what voters across the political spectrum want most.”

The analysis in the Unlocking Potential report applies Arizona-specific data on wages, labor force participation, and childcare costs, combined with nationally recognized economic modeling. The report estimates the scale of benefits Arizona could realize without prescribing specific policy solutions. Full methodology and data sources are detailed in the report.

“Accessible and affordable childcare has enormous economic potential,” said Jim Rounds, President of Rounds Consulting Group. “Too often, the focus is only on cost when making decisions, without weighing the long-term return. This analysis helps fill that gap. If something costs a dollar but returns ten, that changes the conversation, and that’s the kind of insight we need more of in public decision-making. This report is an important starting point; a way to measure the scale of opportunity so others can build on it with more planning, analysis, and investment discussions across the public and private sectors.”

The findings highlight both the opportunity and the responsibility for long-term planning.

“These findings make clear that addressing childcare access and affordability isn’t a short-term idea — it’s a strategy for long-term prosperity,” Dr. Francis added. “This is a starting point for deeper conversations and solution-building to turn shared voter priorities into real outcomes.”

The Unlocking Potential report also includes in-depth analyses of voter-backed priorities in education, housing, and transportation — finding that together these contribute to a strong economy and a thriving future. CFA is releasing a series of issue-specific briefs over the next two weeks and plans to engage leaders statewide to explore how the information can inform long-term planning, investment, and action.

All findings, methodology, and resources are available at arizonafuture.org/UnlockPotential.