No child care business owner wants to consider or discuss the likelihood of a recession. However, good and bad economic times are part of normal economic cycles. Not counting the steep but very brief economic downturn during the COVID pandemic, the last recession in the U.S. was from December 2007 to June 2009 – often referred to as the “Great Recession.” Like most economic downturns that last 18 months to two years, the Great recession lasted about 18 months. The severity, not the length of the Great Recession, caused substantial disruption and loss for individuals and most businesses. The childcare industry experienced low enrollments and financial loss due to low enrollments and parents’ high unemployment.
At this point, few economists predict the next recession will be as bad as the Great Recession. Given the current state of the childcare industry is much different than in 2007, the impact of the next recession on the childcare industry may be quite different than previous recessions. No one can predict with 100% certainty. However, preparing your childcare business for a recession can make all the difference. As we like to say, “Be Optimistic But Be Prepared.”