An economic report published by the Florida Chamber Foundation on Wednesday found that childcare challenges are costing Florida $5.38 billion each year.

The report, developed in collaboration with the National Chamber Foundation as part of the national “Untapped Potential in FL” research initiative, reflects an annual tax revenue loss of $911 million due to the childcare crisis. Florida employers additionally bear an annual burden of $3.47 billion due to employee turnover and absenteeism triggered by childcare issues.

The study found that 48 percent of individuals in the state’s workforce had to make significant daily adjustments due to childcare issues over the past year. Moreover, 64 percent of parents with young children missed work in the last three months. An additional 15 percent were forced to quit their jobs within the past six months due to childcare demands.

“Childcare gaps drive parents out of the workforce, reduce tax revenue, and put undue strain on Florida households and businesses—particularly among the most economically vulnerable,” reads the report.

While the Chamber Foundation lauds recent legislative action — including the passage of Senate Bill 7034 in 2022, which raised monthly payments for foster caregivers — it advocates for the implementation of family-friendly policies like flexible working hours and remote work when possible.

“Employers can reduce the number and severity of challenges that parents, especially women and low-income groups, face by implementing family-friendly policies like flexible working hours and remote work when possible,” the report continues. “In doing so, businesses strengthen their human capital and increase the size of the available talent pool when hiring.”

The report also urges collaboration across sectors, particularly through public-private partnerships, and requests state lawmakers to prioritize childcare issues throughout the forthcoming Legislative Session.

“Government leaders looking to improve workforce participation and fill workforce shortages should consider easing the burdens of working families with children, and legislators and executives should thoughtfully consider impactful measures that will alleviate existing childcare issues,” the report concludes.