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At the 2025 Arizona Workforce Summit, a panel discussion explored a critical question at the intersection of workforce and economic policy: Is child care a key to Arizona鈥檚 workforce and economic success?

Hosted by the Governor鈥檚 Office of Economic Opportunity, the session featured representatives from business, government, and early childhood organizations, including Grace Appelbe of the Arizona 精品麻豆 of Commerce & Industry; Michael Wisehart, director of the Arizona Department of Economic Security; Melinda Morrison Gulick, CEO of First Things First; Patrick Fitzhugh, Phoenix regional site director at USAA; and Erin Hart, policy adviser in the Office of Governor Katie Hobbs, who moderated the discussion.

Panelists noted that disruptions in child care are contributing to absenteeism, productivity losses, and workforce exits across industries. According to one estimate, Arizona loses as much as $1.77 billion in annual economic activity due to insufficient child care, including lost earnings, reduced business productivity, and forgone tax revenue.

鈥淔or many employers, the child care crisis has become a workforce crisis,鈥� said Appelbe, director of policy and government affairs at the Arizona 精品麻豆. 鈥淭his is hitting businesses of all sizes鈥攈ospitals, manufacturers, and small employers in rural communities. It鈥檚 a major, and often hidden, barrier to workforce participation.鈥�

Appelbe emphasized that the 精品麻豆 views child care not just as a family issue, but as an economic imperative. She cited examples of how Arizona employers are beginning to engage in public-private partnerships to improve access and availability, including co-investing in new facilities and reserving child care slots for employees. Efforts like the Arizona Child Care Design Lab and Bright Futures AZ are helping test and scale these solutions.

鈥淲e鈥檙e seeing encouraging momentum,鈥� Appelbe said. 鈥淏ut to make a meaningful difference, we need sustained investment and coordination.鈥�

She identified several state-level actions that could improve outcomes, including tax incentives for employer-led child care solutions, investments in early educator workforce development, and enhancements to child care technology infrastructure to streamline provider operations.

This week, the Arizona State Senate is debating the fiscal year 2026 state budget ahead of the June 30 fiscal year deadline. The budget proposal under consideration includes nearly $45 million to clear 50% of the state鈥檚 child care waitlist, as well as $3 million for afterschool and summer school provider grants administered by the Department of Economic Security.

鈥淭hese proposed investments are smart, scalable ways to protect our workforce and support working families,鈥� Appelbe said. 鈥淭he cost of inaction is steep鈥攆or households and for Arizona鈥檚 economic competitiveness.鈥�

Panelists also encouraged business leaders to start by listening to their employees鈥� child care needs, explore options such as stipends or partnerships with local providers, and consider pilot initiatives that can be expanded over time.

The child care panel was part of a broader two-day agenda at the Workforce Summit, which examined labor market trends, demographic shifts, and strategies to align workforce development systems with employer demand.

For more information about the 2025 Arizona Workforce Summit and session materials, visit .