90% of Firms Say Lack of Affordable Childcare Is Damaging Recruitment and Retention
Monday, 13th January 2025: The high cost of childcare and difficulties in securing childcare places in Dublin is damaging firm’s recruitment efforts and driving employees out of the workforce, says the Dublin Chamber of Commerce.
According to Dublin Chamber’s Q4 Business Outlook Survey, nine out of ten businesses report that the childcare crisis is a significant barrier to attracting and retaining staff. For a fifth of all firms, it is their biggest obstacle.
Mia Finnegan, Public Affairs Executive at Dublin Chamber commented, “Looking at childcare costs as a share of average wages, Ireland ranks the second highest in the OECD and worst in Europe. The cost of childcare in Dublin is even higher than the national average. It is about 10% higher than Cork, and almost double than in Limerick.”
“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. 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. 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”.
The report also highlights measures adopted by Dublin businesses to help employees manage childcare-related challenges. Notably, workplace flexibility emerged as the most widely adopted approach, with nearly three quarters (74%) offering staff options to work remotely and another seven-in-ten (70%) providing flexible working arrangements.
“Employers across Dublin are increasingly adapting their workplace polices to address childcare-related constraints. They recognise the need for greater flexibility in working schedules to not only attract, but retain talent, particularly when it comes to working parents navigating childcare constraints. Flexible and remote working has provided much-needed short-term relief to parents, enabling them to better balance work and family life. However, 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” Finnegan added.
Contact Information
Stephen Browne
stephen@dublinchamber.ie
Notes to editors
Data on childcare costs as a percentage of average wages in 2023 were taken from the OECD website: https://www.oecd.org/en/data/indicators/net-childcare-costs.html?oecdcontrol-3122613a85-var3=2023
Childcare costs comparisons in Ireland can be accessed on the Numbero website. Dublin and Cork data: https://numbeo.com/cost-of-living/compare_cities.jsp?country1=Ireland&country2=Ireland&city1=Dublin&city2=Cork&tracking=getDispatchComparison Dublin and Limerick data: https://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=Ireland&country2=Ireland&city1=Dublin&city2=Limerick&tracking=getDispatchComparison
About Dublin Chamber: Dublin Chamber is Ireland’s largest chamber of commerce with over 1000 member companies. It is the most representative and broadly-based business group in the Greater Dublin Area, providing representation and networking services. Its policy work focuses on developing the Dublin region’s infrastructure & transport, promoting competitiveness, and improving local governance. Dublin Chamber is also one of the oldest chambers of commerce in the world, tracing its origins back to 1782.