The Times Australia
Google AI
Business and Money

Victoria's child-care shutdown is a hard blow for working mothers

  • Written by Danielle Wood, Chief executive officer, Grattan Institute
Victoria's child-care shutdown is a hard blow for working mothers

How do you occupy a child for long enough to get any work done?

This will be the question confronting more than 150,000 Melbourne families for at least the next six weeks.

The Stage 4 restrictions announced by the Victorian government to contain the city’s COVID-19 outbreak include closing all child-care centres[1] for the first time in the pandemic.

Read more: State of disaster called as Melbourne moves to nightly curfew and stage 4 restrictions[2]

Only services for vulnerable children and children whose parents are deemed essential workers will continue.

This will have a big impact on workforce participation – particularly for mothers, who take on the lion’s share of unpaid care.

Child-care and workforce participation

The health advice is that these closures are needed to get Victoria’s COVID-19 outbreak under control. So the focus needs to be on what governments can do to cushion the impact on parents – and to support workforce participation on the other side.

Child-care is critical for women’s workforce participation. Its closure will have significant economic fallout. About 170,000 Melbourne children[3] aged five and under are enrolled in formal early childhood education and care services. The average child in long day care attends for more than 25 hours a week.

The common backup plan for parents in lieu of professional child-minding services – grandparents – is not an option for many either, given health concerns and travel restrictions.

Most parents with young children don’t have much “slack”. On average, they do more than 80 hours a week[4] of paid and unpaid work – the most of all adults.

It seems inevitable the only way many households will be able to manage their caring responsibilities is by reducing their paid work. This will be a financial hit not only for them but for the wider economy, further reducing spending and economic activity.

Women most affected

The closure of child-care centres will be especially tough on working mothers. Australian women still do the bulk of looking after children and housework.

A 2019 Deloitte analysis estimated the average Victorian woman spent 13 hours more[5] on unpaid work and care a week than the average Victorian man. Men generally do more paid work, but this still doesn’t make up the full gap.

Deloitte’s findings are consistent with patterns Australia-wide, where the balance of paid and unpaid work in heterosexual couples is more gendered[6] than almost anywhere else in the western world.

During the first lockdown, the unpaid workload increased for both women and men, but more for women[7].

Responses to an online Work and Care in the Time of COVID-19[8] survey between early May and June suggest women have more commonly borne the brunt of juggling work and children, including supervising online schooling.

These patterns indicate it will be women who are most likely to reduce their hours of paid work without school or day-care services available. This has already been seen overseas[9].

Any hit to women’s workforce participation – particularly if it becomes entrenched – will further widen the lifetime earnings gap between men and women. On pre-pandemic working patterns[10], the average 25-year-old woman who goes on to have at least one child could expect to earn 47% less than an average 25-year-old man who becomes a father.

Policy can help on the other side

The challenge for policymakers is to prevent this short-term economic pain becoming permanent.

The federal government has introduced temporary arrangements[11] to enable Victorian parents to keep their child-care place through this lockdown. Providing income support for child-care workers who may be stood down during the shutdown is also important.

But these policies alone will not be sufficient to support female workforce participation when child-care reopens.

If governments are serious about reducing the fallout, we need to talk about making it more affordable on the other side.

Read more: Permanently raising the Child Care Subsidy is an economic opportunity too good to miss[12]

Child-care costs are one of the biggest barriers to female workforce participation.

Raising the federal government’s Child Care Subsidy would help parents, particularly women, get back to work – supporting both the short-term economic recovery and growing the economy in the longer term.

References

  1. ^ child-care centres (www.theage.com.au)
  2. ^ State of disaster called as Melbourne moves to nightly curfew and stage 4 restrictions (theconversation.com)
  3. ^ 170,000 Melbourne children (docs.education.gov.au)
  4. ^ more than 80 hours a week (aifs.gov.au)
  5. ^ spent 13 hours more (www2.deloitte.com)
  6. ^ more gendered (stats.oecd.org)
  7. ^ but more for women (www.abc.net.au)
  8. ^ Work and Care in the Time of COVID-19 (journals.sagepub.com)
  9. ^ seen overseas (www.nber.org)
  10. ^ working patterns (melbourneinstitute.unimelb.edu.au)
  11. ^ temporary arrangements (ministers.dese.gov.au)
  12. ^ Permanently raising the Child Care Subsidy is an economic opportunity too good to miss (theconversation.com)

Authors: Danielle Wood, Chief executive officer, Grattan Institute

Read more https://theconversation.com/victorias-child-care-shutdown-is-a-hard-blow-for-working-mothers-143837

Business Times

The shout is fading as Aussies hit their spending limits

Half of Australians now pay only for their own order and one in three are ditching the shout A widening gap in what Austra...

Revealed: Office temps are a productivity risk for business owner…

Alliance Climate Control surveyed 1,000 Australian adults who work in an office at least one day a week. The results show t...

How Furniture Hire Revolutionises Hospitality Business Venues Ins…

First impressions can shape everything, especially in a hospitality business. In fact, guests may not remember the room but...

The Times Features

5 Cool Ways to Transform Your Interior in 2026

We are at the end of the great Australian summer, and this is the perfect time to start thinking a...

What First-Time Buyers Must Know About Mortgages and Home Ownership

The reality is, owning a home isn’t for everyone. It’s a personal lifestyle decision rather than a...

SHOP 2026’s HOTTEST HOME TRENDS AT LOW PRICES WITH KMART’S FEBRUARY LIVING COLLECTION

Kmart’s fresh new February Living range brings affordable style to every room, showcasing an  insp...

Holafly report finds top global destinations for remote and hybrid workers

Data collected by Holafly found that 8 in 10 professionals plan to travel internationally in 202...

Will Ozempic-style patches help me lose weight? Two experts explain

Could a simple patch, inspired by the weight-loss drug Ozempic[1], really help you shed excess k...

Parks Victoria launches major statewide recruitment drive

The search is on for Victoria's next generation of rangers, with outdoor enthusiasts encouraged ...

Labour crunch to deepen in 2026 as regional skills crisis escalates

A leading talent acquisition expert is warning Australian businesses are facing an unprecedented r...

Technical SEO Fundamentals Every Small Business Website Must Fix in 2026

Technical SEO Fundamentals often sound intimidating to small business owners. Many Melbourne busin...

Most Older Australians Want to Stay in Their Homes Despite Pressure to Downsize

Retirees need credible alternatives to downsizing that respect their preferences The national con...