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Puerto Rico’s childcare costs remain ‘significant financial challenge’

Federal database confirms that at times, the cost of childcare is more than a month’s rent for many.

Childcare costs in Puerto Rico continue to pose significant financial challenges for families, as revealed by the recently updated National Database of Childcare Prices (NDCP).

The database, managed by the U.S. Department of Labor’s Women’s Bureau, shows that the cost of childcare for one child in Puerto Rico can consume as much as 22.7% of a median family’s income.

This financial burden worsens existing economic hardships in a region already marked by poverty and income inequality. In some cases, the database confirms that the cost of childcare can exceed a month’s rent for many families.

“The fact that the median cost of center-based infant care is more than the median cost of rent should be of urgent concern,” said Women’s Bureau Director Wendy Chun-Hoon. “Families are struggling, and women are disproportionately impacted. We know interventions like the American Rescue Plan have helped, but more federal investments are needed to ensure childcare is accessible and affordable for all.” 

The NDCP data highlights that annual childcare costs in Puerto Rico vary widely based on the child’s age and the type of care. Center-based infant care, the most expensive option, ranges from $4,417 to $5,852 annually for 2024, after adjusting for inflation.

Home-based care often presents an even greater financial burden, consuming up to 27.2% of family income in certain municipalities like Adjuntas. Comparatively, school-age care is the most affordable, costing around 7% of income for center-based services.

Bayamón and Carolina consistently emerge as the most expensive municipalities for childcare, while towns like Adjuntas and Aguada offer relatively lower costs but remain unaffordable for many due to lower household incomes.

Adjuntas, for example, has a median household income of $17,659, with more than 80% of families with children under 5 living in poverty.

The high cost of childcare limits workforce participation, particularly among women. In Adjuntas, only 4.7% of mothers with children under 6 are part of the labor force, compared to 71.7% in Bayamón, where childcare options are more accessible.

This disparity underscores how the lack of affordable childcare perpetuates economic inequality and restricts opportunities for women to participate in the labor market.

In municipalities like Cabo Rojo, where tourism drives seasonal employment, childcare costs compound the precarious financial situation of many families. While household incomes in Cabo Rojo are higher than in Adjuntas, elevated childcare costs still place significant economic strain on families.

The findings of the NDCP underscore the urgent need for policy reforms to address the childcare crisis in Puerto Rico. Without significant investment in affordable childcare solutions, families will continue to face untenable financial pressures, limiting the island’s economic growth and exacerbating inequality.

As federal and local governments consider interventions, the focus must be on creating sustainable, equitable systems that ensure no family is forced to choose between childcare and basic living expenses.

Nationwide, the NDCP finds that families spend between 8.9% and 16% of their median income for full-day care for one child, with 2022 annual prices ranging from $6,552 to $15,600.

Author Details
Author Details
Business reporter with 30 years of experience writing for weekly and daily newspapers, as well as trade publications in Puerto Rico. My list of former employers includes Caribbean Business, The San Juan Star, and the Puerto Rico Daily Sun, among others. My areas of expertise include telecommunications, technology, retail, agriculture, tourism, banking and most other segments of Puerto Rico’s economy.
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