A Strengthened Care Economy is the Future of Gender Equality in Canada
By Sarah Kaplan and Susan Prentice
Canada stands on the brink of economic upheaval, buffeted by soaring tariffs and mounting global instability. To those who think that further investment in childcare is a luxury we cannot afford in these times, they would be wrong. Getting the care economy right isn’t just compassionate policy—it’s savvy economics and a powerful lever for advancing gender equality.
A robust care economy will be Canada’s best defence, building resilience, boosting productivity, and ensuring our nation’s inclusive future. Most importantly, it enables women—who still shoulder a disproportionate share of caregiving—to fully participate in the labour market, closing long-standing gender gaps in income, leadership, and opportunity.
Why Better Care is Smart Economics
Study after study has shown that every dollar spent on assuring access to high-quality care pays dividends in terms of job creation, tax revenues, and, importantly, positive long-term social and economic outcomes for children and their mothers.
Since 2021, the Canada-Wide Early Learning and Child Care (CWELCC) agreements—nicknamed the $10-a-day plan—have delivered real results. Average child care fees have dropped by 40% to 75% in many provinces and territories. Nunavut, Saskatchewan, Manitoba, Quebec, Prince Edward Island, and Newfoundland and Labrador have reached the $10-a-day target for preschoolers. Manitoba has expanded this to all children aged 0 to 12. Ontario has made progress too, though provincial inconsistency has slowed momentum. Across Canada, close to a million preschoolers are now participating in licensed early learning and care.
But success has brought growing pains. Demand far exceeds supply. As costs drop, more families try to enroll their children—a classic case of induced demand. Today, the barrier is no longer just affordability—it’s availability. And the heart of this challenge is not only bricks and mortar—it’s also people. Without enough qualified early childhood educators, the promise of universal care is out of reach.
The Supply Challenge: Spaces and Educators
That’s why the next phase of this national project must be anchored in economic strategy, as well as social ambition. Research shows child care investments deliver outsized returns. This is a chance to build smarter, fairer—and faster.