When comparing the 41 wealthiest nations globally, UNICEF ranks Canada 22nd overall when it comes to childcare policy.
Canada ranks as follows in core areas related to childcare:
Access: In terms of access to childcare services, Canada ranks 16th, suggesting that while some services are available, there may still be challenges in providing universal or affordable access for all families.
Affordability: Canada ranks 21st for affordability, reflecting that childcare costs can be a significant burden for families, making it less affordable compared to other high-income countries.
Leave: Canada ranks 23rd in terms of leave, with one of the lowest rates among high-income countries. The country offers just 12 to 18 months of paid leave, but it is not universally accessible and often does not meet the needs of all parents.
“In particular, Canada has been investing less than its peer countries in social protection policies for children – the fundamental, ‘family-friendly’ trifecta of income benefits, childcare and parental leave that affect so many child outcomes.” https://www.unicef.ca/sites/default/files/2023-12/UNICEFReportCard18CanadianCompanion.pdf
The OECD points out that childcare in Canada is increasingly expensive compared to other places in the world. According to their report, Canadian families spend almost one quarter of their income on childcare, which is significantly higher than many other countries. This high cost of childcare creates a financial strain on many parents, limiting options for families with lower incomes who struggle to balance work and the challenges of caregiving.
Many factors contribute to the increasingly high cost of childcare in Canada:
Limited Government Support: While the federal and provincial governments have implemented some measures to reduce the cost of childcare (e.g., subsidies and reduced fees in some regions), these efforts remain fragmented and often insufficient in battling different costs across the country.
Low Wages for Childcare Workers: Childcare workers in Canada are often underpaid, especially compared to other sectors with similar education and training requirements. This leads to higher costs for parents because providers must charge more to maintain staffing levels and services.
Private Sector Dominance: In Canada, the childcare system is largely privatized, with a significant portion of childcare spaces offered by private providers. This creates less regulation and oversight, leading to higher fees for parents, as providers operate on a for-profit model.
Regional Disparities: The availability and affordability of childcare can vary widely between provinces and territories. While some provinces, like Quebec, have more affordable childcare systems, other areas, such as Ontario, face much higher costs and fewer subsidies, exacerbating the problem.
Limited Funding for Expansion: There has been insufficient investment in expanding public or nonprofit childcare spaces to meet the growing demand. As a result, many parents are left with few affordable options.
These factors combine to make childcare unaffordable for many families, contributing to Canada’s lower rankings in terms of affordability and access. Addressing these challenges would require systemic reform, including expanded government investment and a stronger public childcare system.
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Quebec is a leader in childcare policy in Canada. The province has a long-standing, publicly funded universal childcare system that offers affordable fees and high-quality services. Quebec’s approach is often cited as a model for other provinces and has resulted in improved labor force participation, particularly for women.
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Canada provides a variety of benefits and subsidies for families, such as:
Canada Child Benefit (CCB): A monthly tax-free payment to families with children under 18 years old, based on income.