In the US they prepare for the increase in interest rates 2:32
(CNN) --
From child care centers in cities to those located in rural communities, many providers in the United States are raising the price of tuition to combat inflation, adding another burden for families.
At KidzStuff Childcare Center in Baltimore, the cost of food, rent, electricity and supplies is rising.
CEO Angela Kidane raised her staff's salaries by about 40% amid a tight job market, but she's still struggling to hire teachers.
That forced her to close at least one classroom, which could cost the nonprofit as much as $150,000 a year.
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"We've probably gone up at least 30 to 35% in operating costs," Kidane told CNN.
“What goes through my mind is, how is that going to affect our parents?
We're going to have to pass the cost."
This fall, Kidane will increase tuition for the third time in 12 months, totaling up to 30%.
For some families, full-time child care could cost thousands of dollars more per year.
"It's not easy for us to have to do this, but it's a necessity," Kidane said.
“We couldn't survive.
We would not stay open."
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Children play outside at a child care center in Baltimore.
Child care programs across the country are raising rates for the same reasons.
"It's happening everywhere," said National Child Care Association Director Cindy Lehnhoff.
“[The programs] have no alternative to keep the doors open, this is what has to happen.
And they hate doing it to parents, they hate it."
Inflation is not the only problem
Inflation is only part of the problem.
There are 11.2% fewer child care workers in the sector than before the pandemic, despite federal relief funds that helped programs raise wages (at least somewhat), according to a report by the Center for the Study of Employment in Child Care at the University of California, Berkeley.
As of last year, the median wage in the industry was just over $13 an hour, according to data from the Bureau of Labor Statistics.
One study found that as of March 2021, nearly 16,000 child care programs had closed during the pandemic, about 9% of the industry's licensed programs, leading to longer waiting lists and higher tuition costs for parents.
“We're hearing from people across the country that child care costs are unaffordable, and we're also hearing from parents who work in child care who aren't earning living wages,” said MomsRising Executive Director Kristin Rowe-Finkbeiner.
“It is already estimated that half a million families in the United States of America do not have child care due to lack of access and affordability,” he added.
“With increasing pressure due to inflation, even more families are left stranded without child care.”
The demand for child care could increase further with Covid-19 vaccines now available for children under 5 years of age.
San Diego-based company TOOTRiS, which connects parents with licensed child care providers, said it has seen waiting lists grow about 25% in recent months.
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“Families are anxious to get their children safely back into child care,” said TOOTRiS CEO Alessandra Lezama.
“Coupled with the fact that so many programs have been forced to close during the COVID pandemic, the supply and demand problem has been compounded.”
"We don't want to charge our parents more"
At Beach Babies Child Care, which has several locations in the Rehoboth Beach area of Delaware, owner Sean Toner is raising tuition by 8% to 10% this fall for the second year in a row to combat inflation and boost wages for teachers at approximately $14 per hour.
"We don't want to charge our parents more for a good that shouldn't cost that much," Toner said.
"I don't want to be that person who pushes parents away."
Jessica Gebbia is a teacher at Beach Babies.
Her 5-year-old son also goes to daycare there.
“Most of my paycheck is going to be here,” Gebbia said.
"That's tough, because now we have gas prices, food prices, everything is going up and up."
But Gebbia doesn't want to leave her job.
"I love what I do," he said.
"These kids need teachers who love what they do."
A classroom sits empty at Beach Buddies in Lewes, Delaware, amid a scramble to hire staff.
But many mothers have left the workforce.
It's part of a growing trend: As of May, women's jobs accounted for 88% of those lost in the pandemic, according to the Department of Labor.
While pandemic relief funds have helped stabilize child care providers somewhat, those funds will expire in the next two years.
Advocates worry the industry could fall off a cliff and are calling for more federal investment in child care to close the gap between providers' razor-thin margins and the rising cost to families.
“The pandemic has made it almost impossible for providers to continue, and current market conditions have made it even more difficult,” said Michelle Kang, CEO of the National Association for the Education of Young Children.
"Without actions to shore up and strengthen supply, we are headed for a catastrophe, leaving families with no options for care."
As child care prices rise, millions of families face difficult decisions.
To-Wen Tseng and her husband have struggled to pay for their children's $370-a-week child care in San Diego since their employer cut their hours in half.
So she took her children to Taiwan to stay with her family for the summer while she looks for a second job.
“If I quit my job and stay home and take care of my children, maybe everything will be easier for my family,” Tseng said.
“The reason we're still struggling to pay for this child care is because I don't want to give up my career.
I work hard because I feel like I have to be an example for my children.”
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