In July 2025, Statistics Canada released a landmark report profiling licensed and unlicensed home-based child care across Canada. Based on data from the 2022 Canadian Survey on the Provision of Child Care Services, the study offers our clearest national picture yet of who provides care, under what conditions, and why some caregivers operate outside the licensing system.
Here are five key takeaways that matter for policy and for practice.
- A Workforce Crisis in the Making
Staffing shortages continue to threaten the success of Canada’s child care system — and home-based providers are no exception. These providers are essential, especially for families working non-standard hours or living in rural communities. But the sector is in trouble.
The report shows that fewer than 3% of unlicensed providers have paid staff. Most work alone, often with no training, low income, and little support. The average annual income for home-based providers is just $22,000, and over half of immigrant providers live in low-income households.
Many of these caregivers are not planning to stay in the sector long-term. They often begin providing care to supplement household income during a transition period — not because they see it as a career. Without action, this temporary and unsupported workforce could shrink further.
- Home-Based Care Is Still a Major Part of the System
Despite attention often given to centres, more than 28,000 home-based providers were caring for children aged 0 to 5 in April 2022 — nearly half licensed (14,435) and half unlicensed (14,022). Together, they cared for over 150,000 young children across Canada.
Unlicensed care was more common than licensed in every province except Quebec and BC, where licensing support and public funding have led to higher uptake.
- Unlicensed Providers Fill the Gaps — But at What Cost?
The study found that unlicensed providers are more likely to offer:
- Part-time or flexible schedules
- Before- and after-school care
- Services for families with non-standard work hours
These are critical services — but they often come without basic protections. Over 70% of unlicensed providers lack formal training in early childhood education, compared to 42% of licensed providers. They also lack access to oversight, public funding, or professional networks. This raises concerns about safety, quality and equity.
- Who Are the Caregivers?
Home-based child care in Canada is deeply gendered. Over 95% of providers are women, and nearly half are immigrants or non-permanent residents. About two-fifths are racialized.
The financial precarity is stark:
- Average annual income is $22,000
- More than half of immigrant providers live in low-income households
This confirms what advocates have long argued: home-based child care (both licensed and unlicensed) is held up by underpaid, racialized, and often invisible labour.
- Licensing Remains Uneven — and Often Undervalued
Why don’t more providers become licensed?
The most common response:
“There’s no benefit or need.”
Many said they didn’t plan to stay in the sector long enough to justify the licensing process. Others cited cost, complexity, or a desire to maintain independence.
Interestingly, provinces where licensing is tied to agency support and public funding — like Quebec and BC — have significantly higher rates of licensed providers. This suggests that licensing systems need to be incentivized, not just enforced.
What Can Be Done?
The report found that education level and intent to stay in the sector were the strongest predictors of licensing. If we want to grow the number of regulated home-based spaces, we’ll need a targeted strategy that includes:
- Supports to reduce licensing barriers
- Training pathways for unlicensed providers
- Public messaging that highlights the value of licensing
- Stable funding that treats home-based care as part of the professional sector
Why This Matters
As Canada continues to roll out its $10-a-day child care system, licensed home-based providers will be essential. They offer flexibility, deep community connection, and continuity of care — especially in underserved regions.
But without serious investment in training, pay, and licensing supports, this workforce may shrink further — and with it, the spaces thousands of families rely on.