Johnston Co. Business Leaders Confront Region’s $99.4 Million Child Care Crisis at Summit

ExCEL NC coalition deems child care “essential economic infrastructure”

SMITHFIELD, N.C. (May 14, 2026) – Business leaders convened by the Johnston County Coalition of Chambers and ExCEL NC coalition this week warned that North Carolina’s child care crisis is hobbling workforce participation and slowing economic growth – costing the state $5.6 billion annually and the local region $99.4 million. The leaders also proposed data-driven solutions.

During the Child Care Economic Summit hosted at the Johnston County Agricultural Center on May 11, business people from across industries emphasized that child care is not a side issue, but essential economic infrastructure. 

The Summit’s panel included: 

• Moderator: Debra Derr, Senior Director of Government Affairs, NC Chamber (ExCEL NC Advisory Council)
• Kalya Holmes, Office Manager, Carolina Air Repair 
• Alicia Whitehurst, Area General Manager, Hampton Inn by Hilton and Home2 Suites by Hilton-Smithfield 
• Jennifer Casillas, Director, Kids R Kids Learning Academy- Clayton

“A strong child care system supports workforce participation, business growth, and the long-term competitiveness of our communities,” said Kelly Wallace, president and CEO of the Triangle East Chamber of Commerce. “When parents cannot find dependable care, employers feel the impact through absenteeism, lost productivity, and workforce turnover. If North Carolina wants to maintain its position as the #1 state to do business, we must recognize that a stable, accessible child care system is foundational to a strong economy and a thriving workforce. 

A $5.6 billion problem 

North Carolina’s child care crisis costs the state an estimated $5.65 billion annually – including $4.29 billion in lost business activity due to absenteeism and turnover, and $1.36 billion in lost state revenue collections. 

Since 2019, North Carolina has approximately 100,000 fewer parents of young children participating in the labor force. According to research from the NC Chamber Foundation, NC Child and the U.S. Chamber Foundation, 35 percent of parents who experienced employment disruptions reported leaving the workforce because of child care challenges.

Meanwhile, supply is shrinking. Since 2020, the state has suffered a net loss of nearly 200 licensed child care programs, with family child care homes hardest hit. Infant and toddler care – the most expensive and least affordable form of care – represents the steepest challenge for working families. 

Johnston County impact

Child care-related employee turnover and absenteeism costs the Johnston Co. region – $99.4 million per year. This includes: 

• $76.7 million in lost business activity
• $12.1 million in lost state tax
• $10.6 million in lost local tax revenue

Since January 2025, Johnston Co. also experienced a net loss of 619 child care slots, and more than 13,000 workers experienced disruptive child care challenges. 

Without investment, rural counties in North Carolina will lose at least 40 child care facilities and additional slots in 2026 alone. When child care programs close, parents leave jobs, businesses scale back, and economic momentum stalls.

Businesses leading on solutions

ExCEL NC convenes executives statewide to advance early childhood policies that strengthen workforce participation and economic growth. Summit panelists (see full local list below) rallied around one high-impact solution: establish a statewide subsidy reimbursement floor.

Setting a minimum subsidy payment statewide would give providers predictable revenue that better reflects the cost of care. Today, 95 of North Carolina’s 100 counties fall below the proposed floor, meaning nearly every county would see an increase, with some rates nearly doubling.

Economic modeling shows the reform would:

• Increase GDP by nearly $190 million
• Boost personal income by $127.8 million
• Support about 3,200 jobs statewide, including 2,500 in child care

High-return investment

Research shows that addressing North Carolina’s child care crisis could generate up to $7.5 billion in additional GDP and support as many as 60,000 new jobs statewide.

ExCEL NC leaders emphasized that public investment in child care yields one of the highest economic returns of any workforce strategy, particularly for rural regions seeking to recruit employers and retain young families.

A 2023 poll commissioned by the NC Chamber Foundation found that more than 80% of North Carolina voters view improving child care quality and affordability as a smart use of state dollars, with bipartisan support for policy action to expand access.

About ExCEL NC

ExCEL NC, or Executives Championing Early Learning in North Carolina, is a coalition of business owners, entrepreneurs, corporate leaders, and community leaders who are advocating for solutions that stabilize the state’s childcare options, strengthen our workforce, and create a more prosperous economy. ExCEL NC is a project of NC Child. Learn more at excelnc.org. Follow the coalition's work on LinkedIn.