Childcare crisis hits staffing in Dublin businesses, says Chamber 

The high cost of childcare and difficulties in securing childcare places in Dublin is damaging firm’s recruitment efforts and driving employees out of the workforce, says the Dublin Chamber of Commerce. 

According to Dublin Chamber’s Q4 Business Outlook Survey, nine out of ten businesses report that the childcare crisis is a significant barrier to attracting and retaining staff.

For a fifth of all firms, it is their biggest obstacle. 

Mia Finnegan, Public Affairs Executive at Dublin Chamber, said a public model of childcare should be prioritised in the next Programme for Government.

“Looking at childcare costs as a share of average wages, Ireland ranks the second highest in the OECD and worst in Europe,” she said.

“The cost of childcare in Dublin is even higher than the national average.

“It is about 10% higher than Cork, and 50% higher than Limerick.

“The high cost of childcare is exacerbated by the simple lack of childcare places in Dublin, which has failed to meet the needs of its rapidly growing population.

“While recent budgets have reduced costs for many parents, Ireland’s childcare system remains fragmented and unsustainable, placing immense strain on family finances and limiting workforce participation.

“We believe that a public model of childcare should be prioritised in the next Programme for Government.

“Moving to a public model will be critical for ensuring a steady supply of affordable, quality childcare and building a more sustainable and diverse labour market”. 

The report also highlights measures adopted by Dublin businesses to help employees manage childcare-related challenges.

Notably, workplace flexibility emerged as the most widely adopted approach, with nearly three quarters (74%) offering staff options to work remotely and another seven-in-ten (70%) providing flexible working arrangements. 

“Employers across Dublin are increasingly adapting their workplace polices to address childcare-related constraints,” Finnegan added.

“They recognise the need for greater flexibility in working schedules to not only attract, but retain talent, particularly when it comes to working parents navigating childcare constraints.

“Flexible and remote working has provided much-needed short-term relief to parents, enabling them to better balance work and family life.

“However, these measures are not a panacea for the wider issue.

“A long-term, strategic solution is needed to support families and foster a more equitable and sustainable business environment.”