A new report, The Economic Benefits of Expanded Child Care Services in Ontario, makes it clear that affordable, accessible child care is good for Ontario’s economy. The report from the Centre for Future Work finds that the expansion of early learning and child care since 2019, including through the Canada-Wide Early Learning and Child Care (CWELCC) system, has already generated significant economic benefits for Ontario. In 2024 alone, Ontario’s GDP was estimated to be $13.6 billion higher than it would have been without the expansion of the child care sector. The province also received an estimated $2.25 billion in additional revenue as a result of the economic activity generated by expanded child care.

Child Care Allows More Women to Participate in the Workforce

One of the most significant economic benefits of child care is its impact on women’s labour force participation. Between 2019 and 2026, labour force participation among women aged 25–54 in Ontario increased by two percentage points, translating into approximately 66,000 additional workers entering the provincial labour force. At the same time, the share of women aged 25-54 working part-time declined, allowing more women to work full-time.

These findings reinforce what families and child care advocates have long understood: when child care is affordable and available, parents and specifically mothers have greater opportunities to participate in paid work.

Ontario Is Still Leaving Economic Benefits on the Table

Despite these gains, the report highlights that Ontario’s incomplete implementation of CWELCC is limiting the economic benefits the province could be realizing. Ontario has not met its commitments to create new child care spaces, and fees remain above the $10-a-day target. The province has also continued to rely heavily on for-profit operators to create new capacity, despite the importance of building a strong public and non-profit child care system. It is clear that the more accessible, affordable, and high-quality child care is, the greater the economic benefits will be. 

Ontario needs to start treating child care like the essential economic infrastructure that it is.  Continued federal and provincial investment in expanding public and non-profit child care spaces, strengthening the workforce, and ensuring long-term funding stability will allow Ontario to build on the economic gains already generated by CWELCC and ensure families and communities benefit from them.