Marat Zein, HR Manager of Li-Lac Chocolates, has experienced firsthand how the childcare crisis impacts working families and small businesses alike. Like many families, the lack of affordable, reliable childcare prompted his partner to step away from the workforce for four years. He sees similar struggles among his chocolate factory employees—many of whom live in Sunset Park and rely on family members like grandparents, aunts, and uncles for childcare. But this informal support system isn’t always available, and when unexpected gaps arise—such as sick days or school holidays—parents have to miss work. Even though Li-Lac has a family-first PTO policy, losing just one or two employees on any given day disrupts production and hurts the bottom line.
Unfortunately, Li-Lac’s challenges are not uncommon. The childcare crisis is forcing businesses across the city to make impossible choices, weighing workforce stability against the realities of an inaccessible childcare system. Universal Public Childcare is one investment that could change this by providing free, full-day care for children ages 0 to 5, helping families stay in the workforce and businesses operate more smoothly.
Childcare is unaffordable for most working New Yorkers. Collectively, New Yorkers spend approximately $14 billion on childcare every year. On average, this means families are shelling out at least $21,000 annually to secure childcare seats. And even when parents take on a second job or go into debt to afford childcare, there is no guarantee that there will be available seats. Two-thirds of New Yorkers live in childcare deserts, where there are little to no providers nearby. Demand far exceeds the available capacity: today, there are three children for every licensed childcare slot in New York.
Gumroad, a newly Brooklyn-based e-commerce site for creatives, is also experiencing these challenges. As the company transitions its remote workforce into an in-person model in Dumbo, childcare has emerged as one barrier for the remote employees considering relocation. Founder and CEO Sahil Lavingia has heard from his staff that childcare costs are a significant factor when deciding whether to move to New York. For Gumroad to attract its own talent here, Lavingia may have to increase compensation to cover the difference of childcare costs.
Childcare is the second biggest cause of absenteeism at Gumroad, behind employee illness. As a soon-to-be parent himself, Lavingia is now considering making Gumroad’s office more child-friendly by allowing employees to bring their children to work. But like Zein, he knows that without broader policy solutions, individual businesses are left trying to patch holes in a broken system.
The data confirms what small businesses like Li-Lac Chocolates and Gumroad already know: the childcare crisis is driving families out of New York. Parents of young children are 40% more likely to leave the state, and twice as likely to leave the city. The financial and logistical strain of childcare isn’t just forcing parents out of the workforce—it’s forcing them out of their communities altogether.
But this is an economic issue, not just a crisis for families. More than a third of small business owners say that the lack of childcare is preventing them from expanding or even maintaining their operations. In 2022 alone, New York City lost $23 billion in economic activity because parents had to scale back their working hours or leave their jobs entirely due to childcare struggles.
Universal Public Childcare, a proposal from New Yorkers United for Child Care, would relieve this burden for working and middle-class families. By making New York an affordable place to raise a family, UPC will help small businesses retain talent, boost workforce participation, and strengthen local economies. It will also support childcare providers—many of whom are small business owners themselves—by ensuring they can earn a living wage.
Li-Lac Chocolates, Gumroad, and countless other businesses are an essential part of New York’s economy and culture. Right now, the childcare crisis is holding them back. UPC would change that by providing high-quality, accessible care that allows working families to stay in the city, invest in their communities, and contribute to a thriving local economy.
Randy Peers is president & CEO of the Brooklyn Chamber of Commerce.
