Child Care Statistics in Canada

Child care is an important aspect of any country’s infrastructure. It helps to shape the development and well-being of the society’s youngest members and supports working parents. In Canada, policymakers work together with parents and childcare providers to provide quality care and support for all children regardless of their background, which fosters children’s overall growth and allows parents to fully take part in the workforce.

In this article, we explore the child care statistics in Canada, including the number of children in child care, access and cost of child care, as well as child care industry statistics. We have collated information on national surveys and reports so that by the end of the article you will have a good understanding of childcare statistics in Canada.

Child Care Statistics for Canadians

• 54% of children under six years old were in childcare in Canada at the beginning of 2023.
• Only 15% of Canadian infants were in childcare in 2023, compared to 20% in 2020.
• Over half of Canadian parents choose to have their infants cared for by relatives.
• At around 32%, Quebec has the highest proportion of children in centre-based childcare.
• 53% of Canadian parents consider the location when choosing a child carer.
• Approximately 41% of Canadian parents have had difficulties finding childcare.
• 99% of Canadian childcare providers are small women-owned businesses.
• The childcare industry revenue was approximately $8.7 billion in 2023.
• By 2023, government spending on childcare reached around $8.2 billion.

Child Care in Canada

In 2023, the government conducted the Survey on Early Learning and Child Care Arrangements (SELCCA), which included a range of childcare providers such as before- or after-school programs, centre-based facilities, and care provided at home by a relative or non-relative. The survey did not include occasional days in kindergarten or babysitting.

According to the survey, in early 2023, approximately 54% of children younger than six years old were in either licensed or unlicensed childcare in Canada. This was slightly higher than the 52% recorded in early 2022, but still below the 60% recorded in 2019 before the COVID-19 pandemic.

The Number of Infants in Child Care Has Decreased

While the overall number of young children in child care in Canada has remained relatively stable since 2020, there are noticeable differences between age groups. In 2023, approximately 15% of infants younger than one were in child care, compared to 20% in 2020. Around 56% of parents whose children were not in childcare were on maternity or parental leave, while about 18% preferred to stay at home with the child.

The portion of one- to three-year-olds who were in some form of child care was 62% in 2023, unchanged since 2020. In 2023, more four- and five-year-olds not attending school were in childcare at 73% compared to 63% in 2020. However, fewer four- and five-year-olds attending school were in childcare in 2023 than in 2020, with 46% compared to 54%, respectively.

Changes in the Type of Childcare Used in Canada

More Canadian children under six years old were in daycare centres, preschools, or centres de la petite enfance (CPE) in 2023 than in 2020. The rate was approximately 32% in 2023, which is slightly higher than the 31% recorded in 2022 and similar to the pre-pandemic level in 2019.

At the same time, fewer children were in home-based childcare arrangements. The portion of children was about 7% in 2023, lower than in 2022 or 2019 when the portions were 8% and 12%, respectively. Age remained an important factor for Canadian parents in deciding the type of childcare. In 2023, over half of infants were cared for by a relative, while around two-thirds of one- to three-year-olds were in preschools, CPEs, or daycare centres.

Approximately 82% of four- and five-year-olds who were in childcare were in daycare centres, preschools, or CPEs. The remaining 18% had other childcare arrangements. Among the parents of four- and five-year-olds who attended school and childcare, before- and after-school programs and daycare, preschool, or CPE arrangements were equally popular at 38%. The remaining 24% had other childcare arrangements.

Childcare Across Canada

There are significant differences between provinces when looking at child care in Canada. Children under the age of six were most likely to be in child care if they lived in Quebec with 71% of children in some type of child care. Prince Edward Island and New Brunswick had higher portions than the national average as well, at 59% in each province. Ontario and Alberta had the lowest proportions of children in childcare with 41% and 46% respectively.

While there were no changes in Nova Scotia or New Brunswick compared to survey findings from 2020, in Newfoundland and Labrador, Prince Edward Island, Quebec, and Ontario the number of children in childcare had decreased. It had increased in Manitoba, Saskatchewan, Alberta, and British Columbia.

Location is a Key Factor For Canadian Parents Choosing Child Care

When Canadian parents are making child care arrangements, location remains a key factor. In 2023, approximately 53% of parents considered the location, 50% the characteristics of the child care provider, 38% the affordability, and 36% the hours of operation.

A third of Canadian parents and guardians reported in 2023 that they chose the child care facility because a government or agency had licensed it. Around 36% also felt that the qualifications held by the provider were important.

Finding Child Care in Canada

Around 41% of Canadian parents said they had difficulty finding childcare in early 2023. Parents who had children younger than one had the most difficulties, with approximately 48% reporting it had been difficult to find a place for their child. Parents with children aged four or five who were already attending school had the least trouble at 34%.

Among the parents who had found it challenging to find childcare, 58% said it was difficult to find childcare in their community, and 47% reported that it was hard to find affordable care.

The main reason parents did not have their children in daycare was the cost. 61% of parents said they had looked for childcare but had struggled to find something affordable for them.

Cost of Child Care in Canada

Child care is one of the biggest expenses for Canadian families with children under six and a significant concern to some parents. On average, Canadian families spend approximately $10,500 per child per year on daycare, with people living in urban areas likely to spend even more.

There are notable differences across the country. Families in Quebec cities pay around $190 per month for childcare, while families in Toronto face the highest childcare costs, with average monthly fees of over $1,050.

Provincial and territorial governments continue to address the cost and availability of child care across the country. They aim to create 250,000 new child care spaces by 2026, supported by $30 billion in funding over five years. Parents whose children are in qualifying childcare facilities are eligible for partial and graduated reductions in fees.

In 2023, parents could receive a rebate or credit of up to 50% on daycare fees, up from 25% previously. The aim is to reduce fees until an average of $10 per day is reached in 2026. Annual savings are expected to range from $2,700 in Manitoba to over $9,100 in Ontario and British Columbia.

The Child Care Industry in Canada

About 99% of all childcare businesses in Canada are small, women-owned businesses, often with no employees and an average annual income of approximately $23,000. Some larger childcare companies offer services in multiple locations and sometimes across several provinces. These large companies can generate revenues of over $1.2 million per year.

In 2023, the GDP contribution of childcare provision in Canada, including child care within the education system, was estimated at $18.5 billion. Of this, $6.2 billion comes from childcare businesses, $6.7 billion from kindergarten services, and the rest from government subsidies and expenditures.

There is high turnover in the childcare market. The entry rate of new childcare providers ranges from 19% to 34%, depending on the year, while exit rates range from 17% to 27%. These percentages are mostly made up of small childcare companies that are often short-lived, with an average lifespan of around three years.

Child Care Industry Revenue

The market size, measured by revenue, was approximately $8.7 billion in 2023, with a growth rate of around 4.3%. While the industry experienced slight declines between 2017 and 2020, it has shown steady growth since 2021. In terms of market size, the industry continues to rank around 147th in Canada. Within the healthcare and social assistance sector, it remains the fourth largest industry.

Government Spending on Child Care

Government spending on child care and early learning in Canada has continued to rise. By 2023, spending had reached approximately $8.2 billion, nearly doubling since 2016. The largest expenditures are in Ontario and Quebec, while the three territories account for the smallest portion of government spending. This spending largely reflects population distribution as well as structural differences in the provision of child care across Canadian provinces and territories.

Conclusion

In Canada, just over half of children younger than six are in childcare. Quebec has the highest proportion of children in daycare, most likely thanks to the more affordable prices. When making childcare decisions, Canadian parents and guardians will consider factors such as location, affordability, and qualifications of the childcare provider.

With an average annual cost of $10,000 per child, childcare is one of the biggest financial decisions for young families in Canada and can be a significant burden for many of them. The government is taking steps to make childcare more affordable with credits and rebates until childcare costs just $10 per day per child.