Expanding Childcare Is Not Enough: OECD Calls for Quality and Workforce Investment

An OECD study finds that while enrolment in childcare for children under three is rising across many countries, fragmented systems and workforce shortages are creating unequal access and quality, particularly for disadvantaged children. The report urges governments, development partners, and private providers to invest in workforce development, quality standards, and equitable funding to ensure early childhood education delivers long-term social and economic benefits.

As governments worldwide expand childcare services to support working families and strengthen human capital, a new OECD report has highlighted a growing challenge: ensuring that rapid growth in early childhood education and care (ECEC) for children under the age of three does not come at the cost of quality and equity. The study, Building Quality Education and Care for Children under Three, draws on data from the TALIS Starting Strong survey, conducted by the OECD in partnership with the International Association for the Evaluation of Educational Achievement (IEA), RAND Europe AISBL, and cApStAn. Covering eight education systems across Europe, Canada, and Oceania, the report offers important lessons for policymakers, development agencies, and private-sector stakeholders seeking to improve childcare outcomes.

Rising Demand Exposes Gaps in Access and Inclusion

The report shows that enrolment in childcare for children under three has increased significantly across OECD countries over the last decade. In several participating systems, more than 50% of two-year-olds are enrolled in formal ECEC services, while enrolment rates exceed 70% in Germany, Israel, Norway, New Zealand, and Quebec. This growth reflects increasing female labour force participation and stronger recognition of the role of early childhood education in shaping lifelong learning and productivity.

Despite this progress, access remains uneven. Children from low-income and vulnerable families continue to participate less in childcare services than their more advantaged peers. Many providers reported that demand exceeds available places. In the Flemish Community of Belgium, for example, nearly half of childcare leaders said children could not be enrolled because of insufficient capacity. Such shortages create barriers for parents seeking employment and limit opportunities for children who could benefit most from quality early learning.

For governments and development partners, these findings underline the need to expand childcare infrastructure while ensuring that disadvantaged families are not left behind.

Fragmented Childcare Systems Risk Deepening Inequality

One of the report's strongest messages is that the organisation of childcare systems matters. Across participating countries, services are delivered through a mix of public, private, not-for-profit, for-profit, centre-based, and home-based providers. While this diversity can increase flexibility and help governments meet growing demand, it can also create major differences in quality and resources.

The study found that vulnerable children are often concentrated in particular types of settings. In Belgium and Quebec, more than 20% of childcare settings enrol over twice the average share of children from socio-economically disadvantaged households. Similarly, children with special educational needs are often clustered in specific providers rather than being evenly distributed across the system.

The risk is that children who require the greatest support may end up in settings facing staffing shortages, weaker infrastructure, or fewer learning resources. The report highlights Norway as an example of a more integrated system where vulnerable children are distributed more evenly and resource gaps between providers are less pronounced.

For policymakers, the findings suggest that childcare expansion strategies should be accompanied by targeted funding, quality standards, and monitoring systems that prevent fragmentation from creating unequal opportunities.

Workforce Quality Holds the Key to Better Outcomes

The report stresses that quality childcare depends not only on buildings and equipment but also on the people who work with young children. Across participating countries, staff shortages emerged as one of the most significant challenges facing the sector.

Many leaders reported difficulties recruiting and retaining qualified workers. Staff serving larger numbers of vulnerable children often faced higher stress levels, heavier workloads, and more administrative responsibilities. In Germany, integrated childcare settings reported significant staffing shortages and lower staff-to-child ratios. In Israel and New Brunswick, leaders frequently identified workforce constraints as a major barrier to quality services.

Interestingly, the report found that differences in children's experiences were influenced more by workforce qualifications, training, and professional practices than by whether a provider was public or private. In many cases, variations in educational practices disappeared once staff experience and qualifications were taken into account.

This finding has important implications for governments, donors, and investors. Investments in workforce development, professional training, and staff retention may generate greater returns than infrastructure investments alone. Improving working conditions could also help address growing labour shortages across the sector.

New Opportunities for Development Partners and Private Investors

The report presents significant opportunities for international development organisations and private-sector stakeholders. High-quality childcare supports child development, increases female labour force participation, and contributes to long-term economic growth. As a result, ECEC is increasingly viewed as a strategic investment rather than simply a social service.

Home-based childcare represents one area with strong growth potential. In Belgium and New Brunswick, home-based providers reported extensive use of literacy, numeracy, and socio-emotional development practices. However, they also faced greater administrative burdens and longer working hours. This creates opportunities for technology firms, training providers, and social enterprises to offer digital tools, workforce support systems, and quality-monitoring solutions.

The report recommends that governments prioritise equitable access, strengthen workforce capacity, improve quality assurance systems, and direct additional resources toward vulnerable children. Development partners can support these goals through technical assistance, financing, and evidence-based programme design. Meanwhile, private investors have opportunities to contribute through innovative service delivery models and workforce solutions that improve efficiency and quality.

The OECD concludes that the future challenge is no longer simply creating more childcare places. The real task is ensuring that every child, regardless of family background or provider type, receives high-quality early education and care. Countries that successfully combine expansion with quality, equity, and workforce investment will be best positioned to strengthen human capital, boost economic participation, and deliver lasting social returns.