Greater Iowa City, Inc. remains dedicated to supporting local businesses and addressing critical community needs. Through the Business Retention and Expansion (BRE) surveys conducted in 2023 and 2024 across Johnson County, Greater IC gathered valuable insights into business successes, challenges, and opportunities. A key finding from these surveys revealed that childcare initiatives are a pressing priority and will need to remain a focus of economic and community development strategies in order to address workforce challenges.
Childcare: A Key Workforce Barrier
Childcare consistently ranks among the top three barriers to workforce participation in Johnson County. The challenges are clear:
- 75% of families with children under six have all available parents in the workforce.
- The U.S. Department of Health and Human Services (HHS) defines affordable childcare as costing no more than 7% of household income. However, families in Johnson County, with a median household income of $105,652, spend an average of 15% on childcare.
- Childcare professionals earn an average of $12.57 per hour, the lowest wage among tracked professions. This wage gap leads to high turnover, causing instability in early childhood development.
Given that 90% of brain development occurs by age five, consistent, high-quality childcare is essential for our community’s long-term success.
The Childcare Solutions Wage Enhancement Program
To address these challenges, Greater IC is raising awareness and sustainable investment in the Childcare Solutions Wage Enhancement Program (WEP). This innovative program, designed to improve the quality and stability of childcare services, reflects Johnson County’s commitment to families and the workforce.
Key features of the WEP include:
- Increasing wages for childcare employees by $2 per hour, with coverage for associated payroll tax costs for the employer.
- Helping childcare centers retain staff and promote childcare as a sustainable career path—without increasing costs for parents.
Meet Michael Chen, Leading the Charge
Michael Chen, Greater IC’s new Community Development Program Manager, brings 17 years of experience in sales, training, marketing, and event planning to his role. His expertise in building relationships and collaborating with businesses of all sizes positions him as a strong advocate for childcare solutions.
In the coming months, you’ll be hearing directly from Michael as he engages with the community to promote the WEP and other childcare solutions initiatives. His leadership will play a pivotal role in driving sustainable investments that benefit families, businesses, and the broader workforce.
To connect with Michael, visit his LinkedIn profile or send him an email.
A Vision for the Future
By addressing critical workforce barriers like childcare, Greater IC continues to strengthen Johnson County’s economic resilience and community well-being. Together, we are building a foundation for a brighter future for businesses, families, and all who call this region home.
