According to Dublin Chamber’s Q4 Business Outlook Survey, nine out of ten businesses report the childcare crisis as a significant barrier to attracting and retaining staff.
One fifth of all firms (20pc) say it’s their biggest obstacle, and is driving employees out of the workforce.
“Looking at childcare costs as a share of average wages, Ireland ranks the second highest in the OECD and worst in Europe,” said Mia Finnegan, public affairs executive at Dublin Chamber.
“The cost of childcare in Dublin is even higher than the national average. It is about 10pc higher than Cork, and 50pc 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 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,” she added.
The report also highlights measures adopted by Dublin businesses to help employees manage childcare-related challenges.
Workplace flexibility emerged as the most widely adopted approach, with nearly three quarters (74pc) offering staff options to work remotely.
Another seven-in-ten (70pc) are providing flexible working arrangements to staff with children.
“Employers across Dublin are increasingly adopting their workplace policies to address childcare-related constraints,” Ms Finnegan said.
“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.”
