Childcare costs exclude women from workforce

Childcare costs here are the highest in Europe and are keeping large numbers of women out of the workforce, according to a major…

Childcare costs here are the highest in Europe and are keeping large numbers of women out of the workforce, according to a major study published yesterday. It says Irish parents spend almost twice the EU average on childcare and it indicates the problem is getting worse.

The report, by the Forum on the Workplace of the Future, says there is a "serious under-utilisation" of women's high standards of education and skills, and a "critical" factor in this is the lack of affordable childcare.

The cost of childcare is just one of a number of barriers to women's participation in the workforce, according to the report. They also receive on average lower pay than men and are "very much under-represented" in managerial positions.

The forum was set up by the National Centre for Partnership and Performance to draw up a blueprint for the successful Irish workplace in 2010 and beyond. It received nearly 50 written submissions in the preparation of its report, launched yesterday by Taoiseach Bertie Ahern. The report calls for a range of measures to improve access to the workplace for groups including lone parents, people with disabilities, older workers and non-nationals.

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It points to a recent EU-funded study which evaluated the 15 pre-enlargement states in terms of the supports provided to enable parents to work outside the home.

Ireland was ranked last of the 15, in a table headed by Denmark, Sweden and Finland. "At the same time, the cost to parents of childcare is the highest in Europe. Irish parents pay on average 20 per cent of their annual income towards childcare, which is almost twice the EU average of 12 per cent."

The report points out that in 1999 an expert working group set up under the partnership process estimated that a shortfall in childcare places of 40,000 would arise by 2010. "Recent estimates by the ESRI suggest the shortfall may be even more acute," it says. Changing demographics also point to the problem worsening unless action is taken.

"In recent times a high proportion of Irish women have deferred childbirth until their early 30s. By 2013, the population cohort aged in their 30s will have increased by 150,000. It seems likely that this will further accentuate the need for adequate childcare provision."

The report calls for action on a range of other issues if the transition to a "knowledge society" is to be properly managed.

It identifies "basic skill gaps" in literacy, numeracy and foreign languages, as well as in management and leadership, that need to be addressed if workplaces are to maximise their potential.

Mr Ahern said the report represented the most in-depth assessment of Irish workplaces to date. He said the same energy that had been invested in Ireland's economic success "must now be brought to the transformation of the workplace and the individual working lives of employees".