The Economic Benefits of Expanded Child Care Services in Ontario
July 2026
A new economic analysis by Dr. Jim Stanford from the Centre for Future Work shows that the $10aDay child care plan has already delivered major economic returns for Ontario. Despite the system still being in its growth phase, the expansion of child care is proving to be a powerful engine for provincial prosperity.
Main Findings: A Boost to the Provincial Economy and Government Coffers
- Significant GDP Growth: By 2024, Ontario’s GDP was an estimated $13.6 billion higher than it would have been without the expansion of child care services since 2019.
- A “Profitable” Program for Government: The economic activity generated by expanded child care resulted in $2.25 billion in extra provincial revenue in 2024 through taxes and other sources. This incremental revenue slightly exceeds the province’s net contributions to ELCC services, effectively making it a money-maker for the provincial government.
- Empowering Women in the Workforce: Since 2019, the labour force participation rate for women aged 25-54 in Ontario rose by two full percentage points. This shift has added approximately 66,000 workers to the provincial economy.
- Job Creation and Better Wages: Over 17,000 new jobs have been created in Ontario’s child care sector since 2019. Average wages for these workers (adjusted for inflation) have grown by 15%.
- Reducing Inflation for Families: Across the country, child care costs dropped by 35% between 2022 and 2026. Many Ontario families are saving over $1000 a month. This has provided a vital buffer against the rising costs of housing, food, and energy.
“Affordable, quality child care services are a vital precondition for economic progress. The data confirm that even Ontario’s partial and inconsistent rollout of the national program has been an economic boon. However, the province is leaving billions of dollars in potential growth on the table by failing to meet its targets.”
– Dr. Jim Stanford
Join the Care Counts Campaign to tell your politicians about the importance of child care
Care Counts! Wages Matter!
The Care Counts campaign is the AECEO and OCBCC’s multi-year advocacy campaign aimed at securing decent work and pay for Early Childhood Educators and child care workers, as part of a fully and sufficiently publicly funded $10aDay early learning and child care program in Ontario, and across the broader early years and child care sector.
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