Childcare Is Economic Infrastructure — Here’s What Orange County Is Doing About It
Ask any parent who’s tried to find childcare in Orange County, and you’ll hear some version of the same story: long waitlists, high costs, and not enough good options nearby. It turns out that story isn’t just a family problem — it’s an economic one, with a price tag in the billions.
That was the message at a recent Family Foundation Alliance event, “The Workforce Behind the Workforce: Childcare as a Catalyst for Economic Growth” where local experts and funders gathered to talk about how childcare shortages are holding back families, employers, and the region’s economy alike — and what can be done about it.
Tiffany Alva of First 5 Orange County set the stage with the numbers. By national standards, Orange County is a “childcare desert” meaning there simply aren’t enough licensed spots for the children who need them, especially infants and toddlers.
“Childcare truly is the workforce behind the workforce. It determines whether the local employer can hire, retain, and grow.” – Tiffany Alva, First 5 Orange County
The costs show up everywhere: on employers’ bottom lines when workers can’t make a shift, and on family budgets already stretched thin. Alva’s team estimates the county loses $5.47 billion a year in lost productivity and wages, plus $536 million in tax revenue — and more than 71,600 jobs annually. One in five parents arrive late to work because of childcare gaps; one in ten end up resigning or losing their jobs altogether.
But the event wasn’t just about the problem — it was about the people building solutions. Iosefa Alofaituli, who leads the nonprofit CIELO, shared how the childcare shortage hits low-income and immigrant neighborhoods even harder, and how his team has helped launch 85 new licensed childcare businesses in Orange County over the past year by giving aspiring providers the training, capital, and support to get started.
“This childcare desert is impacting our disinvested communities even more than what’s being reported.” — Iosefa Alofaituli, CIELO
One of those providers, Lucy Báez, shared her own path — from a single mother who once struggled to find safe and reliable childcare, to a licensed childcare business owner with CIELO’s support behind her every step.
“Programs like CIELO are essential to our community. They were my cheerleaders.” — Lucy Báez, Childcare Provider & CIELO Incubator Graduate
The Big Picture
- Orange County is a certified childcare desert, with only about 1 licensed infant/toddler slot for every 5 children who may need one.
- The economic cost is enormous: $5.47 billion in lost productivity and wages each year, plus $536 million in lost tax revenue — up 27% since 2020.
- Jobs are affected daily: 71,600+ jobs lost annually, with parents arriving late, cutting hours, or leaving the workforce entirely due to childcare gaps.
- New providers are stepping up: CIELO’s Childcare Incubator, in partnership with First 5 OC, licensed 85 new home-based providers this past year alone.
- There’s a clear role for philanthropy: from funding innovation and capacity-building to simply staying at the table as new solutions like CIELO Cares take shape.
Childcare shortages can feel like an invisible problem — until you’re the parent stuck on a waitlist, or the business owner short a shift. Orange County has the data, the momentum, and local nonprofit organizations building solutions. The opportunity now is to invest in and expand what’s working.
Want to learn more about how you can support childcare access in Orange County? Reach out to the Orange County Community Foundation to get involved.
