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Plus: An Interview With Moms First Cofounder Reshma Saujani

 

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For years, the high cost of child care in the U.S. was considered a women’s issue. It could hit their wallets, create schedule snafus they had to manage and even derail their careers. But for many business leaders and lawmakers, it was seen as a family pocketbook topic, not a business or economic one.

In this week’s newsletter, we explore two signs that those ideas are changing. One is the new research and data being produced by the likes of KPMG, the professional services and accounting giant. My colleague Maria Gracia Santillana Linares wrote Friday about its newly launched
Parental Work Disruption Index, which builds on previously unpublished data from the Bureau of Labor Statistics to break down the loss in working hours—as well as yearly and lifetime wages—that stem from child care access problems. The new index will track such figures on a monthly basis and quantify the total working hours lost based on employees shifting their schedules, a key metric in quantifying productivity costs to businesses.

Meanwhile, activist Reshma Saujani, who cofounded the organization Moms First, has been consistently campaigning to make the issue of child care more of a theme in this year’s presidential election, pushing candidates on both sides to better address a topic that’s
one of the rare areas of agreement across party lines. Some 80% of Republicans, 88% of Independents and 99% of Democrats want candidates to have a plan or policies ready to help working parents afford high-quality child care, according to the First Five Years Fund, which works to build support for early learning and child care programs at the federal level. Forbes spoke with Saujani about the impact her efforts have had this year in an interview below.

Hope it’s a great week.

Jena McGregor Senior Editor

Follow me on Forbes.com

HUMAN CAPITAL
illustration by yunjia yuan for forbes; photos by Feifei Cui/Paoluzzo/getty images; Refluo/getty images
Amid the deadly listeria outbreak at a Boar’s Head factory in Jarratt, Virginia that has put America’s largest deli meat brand in peril, Forbes’ Chloe Sorvino’s latest story spotlights several lawsuits workers have filed in recent years alleging harassment or discrimination at the company. One 2019 lawsuit from Ohio alleged racial discrimination and a culture in which Black employees were frequently passed over for promotions; Sorvino shares details about others. Boar’s Head called the claims “unsubstantiated allegations” in a statement to Forbes.
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HYBRID WORK
We’ve all heard about the carrots dangled for remote workers to move to smaller cities or rural locales to help boost local economies. But Tulsa has the receipts, thanks to new research from Harvard and other universities that Emma Goldberg detailed in the New York Times. The research found that remote workers who moved to Tulsa saved an average of $25,000 on annual housing costs, and the relocations brought in some $14.9 million in annual income tax revenue and $5.8 million in sales taxes to the State of Oklahoma and the City of Tulsa, the researchers estimated.

WeWork co-founder Adam Neumann is introducing a coworking competitor, calling the new concept Workflow, which
Bloomberg reports will be a “more adult version” of the coworking company he cofounded and failed to buy back in a recent bid. The new company “will aim to create a calm atmosphere with fancy artwork and plush furniture, instead of providing kombucha and beer at offices filled by twentysomethings running amok.”
WHAT’S NEXT
Reshma Saujani 
Moms First Cofounder Reshma Saujani
Read Article
Just three weeks before the election, Forbes spoke with Reshma Saujani, founder of the advocacy organization Moms First, about her efforts to raise child care as an issue in this year’s presidential election. Excerpts from the conversation below have been edited for length and clarity. 

Tell us about how you pushed this issue in the election.

When I started this work a couple of years ago, I would talk to politicians and I'd say, why have we not passed child care? And they’d say, the problem is, it’s like number 13 on the list. It will never get done unless it’s prioritized.

We developed a strategy of how we get child care asked as a question [during the debates]. We got 15,000 moms to sign our petition. We reached out to women and moms inside the organization and said use your power or your influence to elevate this issue. And it happened. The question got asked. Both the candidates, Trump and Biden (at the time), just decided to talk about their golf game instead.

Then I got the opportunity to ask a question at [the Economic Club of New York]. … His people were informed of the kinds of questions he might get asked. … He was not prepared. He kind of botches the answer, and it becomes one of the viral clips of this election cycle. What was remarkable after that … was every single network was talking and debating about how to fix child care. Not just about his answer, but how do you fix child care? 

So when the V.P. debate comes around, our question is front and center. They spent eight minutes talking about it. … You then see both of the candidates release statements or include in their policy platform their positions on child care. We made child care a central issue in this election. I think it just showed us we as moms have more power than we know. 

What have they not yet said about what they're going to do that you want to hear? 

One, I want to see more specifics. Two, I want to get a hard commitment that in the first 100 days this will be one of their priority issues. For both the candidates. 

Child care as a business model is broken. You have a market issue and a supply issue. The government, quite frankly, with some help from the private sector, is the only one that can actually offer the subsidy to make it affordable for parents.

What about employers? What more could they be pushing the government to do? 

It's no secret, whether it’s paid leave or child care, businesses have often been an impediment to passing legislation. So that has to change. That’s a lot of the work we’ve done at Moms First—really making it clear that it’s an economic issue. … I think in the pandemic, employers realized how much balancing women were doing because of child care. 

Secondly, while we’re waiting for government to get it together, [employers] have to kind of fill in. More companies need to be offering child care benefits, child care subsidies. ... What are you [as an employer] doing from a leadership perspective to solve the child care problems in the community that you’re in? 

What role do you see entrepreneurs playing in solving the child care crisis?

The [child care] industry is a multibillion dollar industry. It is ripe for disruption. … but in this moment where it's so hard to be an entrepreneur because of funding [shortages], I've seen a lot of innovations that are not getting their next round of funding. We're not seeing it through. 


Has this year’s campaign gotten you more support from employers?

This has been probably one of the biggest professional accomplishments of my life—to see how how child care became elevated as an issue. … How do we make child care an economic issue? Check. How do we get it elevated as a top-tier issue that policymakers will start thinking about? Check. Now the next stage is how do we get it done? We've never been this close.

Well, there was the 1970s, when we almost had universal child care.

Yes. That was the last time we were this close. 

We’ve grown by like 100%. When I started, people were like what are you doing? Why are you focused on moms? … It is easier to get companies to get buy in on this issue now. It no longer feels political. It feels economic. It's easier to get funding—and high-level funding—now.

What else are you up to these days?

I’ve just launched a new podcast on midlife. It is tied to our work.

We soul crush American women by making it so damn hard every step of the way, whether it is not being able to find child care, whether it's mental health issues, whether it's about our schools, whether it's about our promotions and job prospects. … For me, this podcast is to make women recognize that. It's a ruse, and we're falling for it. This could actually be the most powerful time of our lives.

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Facts + Comments
A new “Parental Work Disruption Index” from KPMG aims to not only show how women and men lose out financially due to child care options, but quantify the number of working hours lost, demonstrating the high productivity cost to businesses that don’t offer reliable solutions:

34%

Of the workers who had to cut their full-time hours to part-time this year because of child care, about 34% were men

 

1.6 million

The number of employees who, in September, either worked fewer hours or shifted to part-time work because of child care problems. That measure is a 69% increase from the average of the same month in the previous four years.

 

‘The index is a clear way for companies to understand the strains in the labor market’

Matthew Nestler, senior economist at KPMG U.S. and author of the index

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