Universal childcare needs workforce investment

If we want universal early childhood education and care, we need to invest in the workforce

childcare

Anthony Albanese, laudably, wants universal early childhood education (ECEC) and care to be his legacy as Prime Minister.

He knows, as do most of us, that universally affordable and accessible early learning is desperately needed in Australia.

In 2024, almost half of women who did not have a job were unavailable to start work because they were caring for children. This is a significant increase since the previous year, when less than a third of women who did not have a job were unavailable for work because they were caring for children.

In its first term, the Albanese Government took significant steps toward achieving this legacy. In December 2024, the Labor Government committed to establishing a $1 billion Building Early Education Fund to provide capital grants for not-for-profit ECEC providers and state and local governments to establish and expand services. In early 2025, the Government passed legislation partially abolishing the Child Care Subsidy Activity Test, allowing approximately 100,000 families to access more hours of subsidised care.

These commitments were celebrated by the ECEC sector and by families across the country. The Activity Test is certainly a recognised barrier to achieving universal early childhood education and care, and the fact that there are simply not enough places in childcare services is another. In 2024, a quarter of Australian regions were classified as childcare deserts – meaning there were more than three children for every place in an early childcare education and care service.

However, expanding access to early education and care will not work if we do not properly value the time, skill and expertise of the workers that provide that care. The government’s slow roll-out of a 15% pay rise for educators – promised in August 2024 – show us that we have a long way to go when it comes to valuing early childhood educators.

Workforce shortages

There is a shortfall of around 21,000 qualified staff to meet existing demand in early childhood education and care, with a further 18,000 staff required to meet estimated unmet demand in services not yet established, and another 18,000 staff required to realise and implement the government’s dreams of a universal system.

Almost all early childhood workers are women. This perhaps explains why they are paid well below the national average wage, and well below the average earnings of security guards, truck drivers or mechanics, despite similar qualification requirements. Workers in the early education sector are also more likely than the average Australian worker to be on a fixed term contract, be paid at minimum award rates and have a second job to make ends meet. Is it any wonder that we are struggling to find the 57,000 workers we need to ensure families can access the education and care they need? The entire population of Noosa, or Dubbo, or Orange would need to take up arms as educators, cooks, administrators to meet expected demand.

Slow roll-out of promised pay rise

To begin addressing the workforce shortage, in August 2024, the Government announced $3.6 billion in funding to support a historic 15% wage increase to eligible early childhood education and care workers. This increase, in the form of a Worker Retention Payment, would equate to at least $155 more per week in the pockets of workers. Service providers could begin applying for the funding in October 2024, with the wage increase taking effect in December 2024, and payments due to begin in January 2025.

The roll-out of this pay rise has been slow. By June 2025, only a third of early childhood education and care workers had received the higher rates of pay. Even though there were six months between the policy announcement and the anticipated commencement of pay increases, the Department of Education were underprepared, and the pace of implementation has caused significant anxiety within the sector about the Government’s prioritisation of workforce development.

While the sector is a complex mix of large, small, community, private and government providers, the sheer number of reports, consultations and inquiries into the early childhood education over the last few years would suggest the Government should know where the pitfalls are and how to avoid them to implement a central and essential policy.

Coordinated and considered action is required to ensure the workforce can expand to meet the needs of a growing early education sector. The predominately female workers that do the invaluable work of caring for and educating children cannot be an afterthought. We need the same level of urgency that we usually reserve for recruiting construction workers – usually men – to build houses.

Let’s be clear; the system doesn’t work without valuing the workforce. Delays to the promised educator pay rise send the wrong message. Quality care needs a well-paid, respected workforce. No shortcuts.

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