Business

2 Bay Area cities invest in network connecting families with child care

NBC Universal, Inc.

As more workers return to the office, two Bay Area cities are putting money toward connecting families with quality child care, investing in the caregiving network Upwards.

The cities of San Jose and Palo Alto are the latest government agencies to partner with Upwards, which connects parents with quality child care. The cost of that care has soared in recent years along with the demand for it, and those elements are having an impact on the local economy.

"What we’re seeing now is that a lot of employees are having their workers come back to work, and there’s a much greater demand for child care again," said Jessa Santangelo, vice president of business development for Upwards.

The availability of care is one part of the equation. Cost is another.

In Silicon Valley, child care for one infant will cost a family more than $36,000 a year. The cost rises to nearly $68,000 for an infant and a preschooler and nearly $90,000 for a family with a baby, a preschooler and a school-age child.

One way to bring down that cost is to make more care available, and that’s where investments from San Jose and Palo Alto come in.

Upwards helps care providers grow their businesses so they can maximize how many children they can accept, and the platform helps to streamline the business end so the caregivers can focus on the children.

Families can use Upwards to connect with available day care providers, nannies or babysitters who Upwards monitors daily beyond state licensing.

"We need child care providers; they are the backbone of the San Jose community," Santangelo said. "If we don’t have child care providers to take care of the children, then families can’t go back to work. That’s a massive impact on the economy. So providing this essential care really empowers families, and that drives the economy."

According to the child avocacy agency California First 5, quality child care boosts workforce participation and allows parents to be more productive. Reliable care also means lower turnover for companies and more early childhood development.

But there are 700 fewer day care facilities in San Jose than 10 years ago, which is why the city is investing $1 million in Upwards’ Boost program to work with caregivers who serve low-income families. The goal is to help providers restart or expand their businesses.

Upwards also provides care for parents who work early mornings, late nights or weekends. It provides assistance for military families too.

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