The high cost of childcare and difficulties securing childcare places in Dublin has damaged the ability of companies to recruit staff and is driving employees, especially women, out of the workforce, the Dublin Chamber of Commerce has warned.
Almost nine in 10 businesses told an outlook survey conducted by the organisation that the childcare crisis affected their ability to attract and retain staff, with a fifth of all companies describing it as the primary barrier to doing so.
The prohibitive cost and limited availability of childcare places is among the most pressing issues for businesses in the capital, Dublin Chamber said.
“Looking at childcare costs as a share of average wages, Ireland ranks the second highest in the OECD [Organisation for Economic Co-operation and Development] and worst in Europe. The cost of childcare in Dublin is even higher than the national average. It is about 10 per cent higher than Cork, and 50 per cent higher than Limerick,” said Dublin Chamber public affairs executive Mia Finnegan.
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“The high cost of childcare is exacerbated by the simple lack of childcare places in Dublin, which has failed to meet the needs of its rapidly growing population.”
About 250 businesses in the Dublin region participated in the survey, which took place between mid-November and early December 2024. They were asked the question “to what extent do childcare challenges affect your company’s ability to attract and retain staff?”
All the main political parties made pledges on childcare in advance of the general election. Fianna Fáil and Fine Gael were among the five parties to promise that they would cap childcare costs at €200 per month per child. However, as government formation talks continue, it is unclear when this might happen, while creche owners have warned that such a cap would force many childcare facilities to close.
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In the absence of any Government intervention, employers in Dublin are adapting their workplace policies to address childcare constraints, the Dublin Chamber said.
About three-quarters of the companies it surveyed said they offer staff remote working options, while seven in 10 provide flexible working arrangements.
Some 46 per cent allow flexible scheduling for all workdays, while 38 per cent say they permit employees to log off and log back on as childcare needs arise.
Although 36 per cent offer part-time roles or reduced hours to parents, just 11 per cent offer the facility to job-share and only 1 per cent said they had on-site childcare facilities or partnerships with local childcare providers in place.
”While recent budgets have reduced costs for many parents, Ireland’s childcare system remains fragmented and unsustainable, placing immense strain on family finances and limiting workforce participation,” Ms Finnegan said.
”We believe that a public model of childcare should be prioritised in the next programme for government. Moving to a public model will be critical for ensuring a steady supply of affordable, quality childcare and building a more sustainable and diverse labour market.”
While Dublin employers recognise the need for greater flexibility in working schedules and both flexible and remote working can provide “much-needed short-term relief” to parents, this cannot in itself be enough to ease the crisis, Ms Finnegan added.
“These measures are not a panacea for the wider issue. A long-term, strategic solution is needed to support families and foster a more equitable and sustainable business environment.”
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