Thursday, July 21, 2011

Is the Demand and Pay for Nannies Growing, Slowing, or Staying the Same?

How Much Do Others Earn and Where Do They Earn It?

In 2010, childcare workers averaged $19,300 per year compared to a national mean for all workers of $44,410.

Analyzing data tables from the Bureau of Labor Statistics can reveal interesting statistics regarding childcare workers. The term "childcare workers" refers to those who provide care whether in-home or in a business setting. Statistics regarding nannies are included, but not separately collected.

The term "mean compensation" or "mean wage" refers to a number at the middle of the pay range. The concept is that half the workers make less and that half the workers make more than the mean wage. The resulting number does not account for how much more or less those figures may deviate from the mean.

According to data released in June 2010, the mean salary of a childcare worker was $19,300 compared to a national mean for all workers of $44,410. My guess is that the childcare numbers are weighed heavily with data from day care centers who often employee part-time employees. Less than 3% of private homes needing childcare hire part-timers.

The best paying metro areas include: San Francisco, San Diego, Manhattan, Northern New Jersey, and parts of Massachusetts and Connecticut.

Generally, the coasts pay more and the Midwest and South pay less. Certain regions of the country seem to have no demand for nannies and rely on "babysitters" or a combination of friends, neighbors, and relatives.

Do you think the demand and pay for nannies is growing, slowing, or staying the same?

17 comments:

lovebeingananny said...

That's super sad that we make less than half of the average American. I don't think the demand has decreased but salaries have. I don't know why but everyone looking for a new job say the pay is much lower.

All About Nanny Care said...

I think the demand for non-traditional nannies is growing. Part-time, before and after school, temp are all growing areas. There has also been a trend away from live-in to live-out for full-time.

The pay has definitely declined in the last few years, partly because parents have less of a childcare budget and partly because the industry has been flooded with new caregivers from other areas hungry for work and willing to take a lower than market rate. Thtransitionon has been easy for them with the every growing number of online sites.

I do see wages slowly going back up and I predict that within the next few years the industry will semeasurableable gap between the professional nanny and the day worker nanny.

BTW, nannies are by far the highest paid childcare worker. Even if you consider those that are on the low end of the pay scale.

Fiona Littleton said...

I work for parents who both work on Wall Street. After the economic recession all you heard and read was that nannies and housekeepers were losing jobs. I don't get it. My employers told me that even if they lose their jobs they will need me so they have time to job search. They made it clear that while they lost their annual bonus in 2008 I wasn't going to lose mine!

But this newsletter (BTBN) said about 20% actual nanny placement agencies had closed since 2008 but also said that may due to nanny web sites and not economic recession.

My friends looking for jobs say there are less higher paying jobs in the NYC metro area. But, that may be due to employers using nanny web sites too, because they are cheaper, trying to save money by using a nanny web site instead of a traditional nanny agency.

IMO jobs in metro areas still in great demand. Parents still hiring nannies. Less well paying jobs seem to me the norm also. But that may be due to nanny websites and not due to parents not being able to afford nannies.

Reyna said...

For my friends looking for nanny jobs it's been much harder to find well paying jobs. Tons of low paying jobs. Fiona, I think it is due to websites. I know care.com gives a good rate calculator which isn't too low, but the parents that use the sites are chosing money over quality. Who wants to work for cheap parents?

Anonymous said...

I think it's easier to find a well paying nanny job than teaching job here in NJ! If you think we got it bad government employees and other childcare providers are worse.

Lyndsay said...

If the best jobs are in NY where are they? LOL?!

Christy said...

I just think that it takes more time to find a job great job. There are more high end nannies and illegal nannies taking our jobs. Here in NJ the Governor cut jobs for teachers who are taking nanny jobs as they wait for new teaching jobs. The illegals are willing to work for low wages so they are both taking jobs from us middle of the road nannies.

If you are willing to move I think you will have better chance of finding jobs than if you stay in one area.

Anonymous said...

I agree with All About Nanny Care.

I've been a nanny for over 10 years and the pay in Northern, NJ has always been anywhere from $10 to $18. With the norm being $15 per hour.

My nanny job of 5 years ended in Oct. 2008- and it was very difficult to find a job paying more than $13 an hour either thru on line sites or agencies.
I saw salaries at an all time low of $8 per hour. The market was just too flooded with people losing their jobs, so families were able to find someone willing to take such a low pay.

However now- in July of 2011- I see jobs mostly in the $15 range-
I think parents know they need to offer at least $15 per hour to get someone capable.

Happily I have been more and more jobs in the $15 to $20 range.
And have even been lucky enough to find a side babysitting job for 420 per hour. (The parents were wanted to attract a professional after a few years of bad sitters.

I too think the nanny profession will start to rise again- once those who took nanny jobs- go back to their orgional profession.

Andrea- Nanny in NJ

Anonymous said...

You must have meant $20 an hour Andrea. That's decent, but there are even higher paying in NJ but the key is HOW to find those jobs. Web sites typically don't have 6 figures posted on nanny websites. I use an exclusive agency. I make 6 figures along with a few others that I know (and there may be more) in the NY metro area I work in. When I worked in NJ 5 yrs ago I made $30 per hour for two kids so the high paying jobs existed then and they still do now. When it comes to the top jobs for degreed nannies there are still jobs but it may take a LONG time to find them. So don't leave a job until you have another. You probably won't find a 6 figure job on a nanny website. I think you can find SOME $20 HR jobs like Andrea listed in that area on websites, but I don't know if there are any $30 per hour or annual 6 figures on any websites. The need for quality nannies commanding high salaries exist, just takes time and the right resources to find them.

Tobago Nanny said...

I'm in NY area too and don't know anyone making nearly $30 per hour. I'm guessing the 6 figure nanny works for a celebrity??? We must have very different education and experience. I'm starting to think my age and weight are not helping me find a job too. Seems people like to hire young, thin girls, probably because they think they are more active. I'm just guessing because no one would ever say that to me so i'm not sure. I never even considered anyone made $30 hour for a nanny job and I can't live far from anonymous or Andrea. Perhaps race is an issue no one talks about also.

Linda said...

I found my best job ever on a nanny web site so they have some high paying jobs online too. It's been worse. Jobs pay less and less job available IMO.

Nanny in New York said...

I'm really shocked most people think that nanny jobs are easy to find and for good pay.

All I hear locally here in the NY suburban area FROM ALL MY NANNY FRIENDS is that the pay rates have gone WAY DOWN. All I hear is there are no nanny jobs and that the rates are horrible. Ask anyone in this area. I have friends looking for work going on two years. I have them being offered $10 an hour! In the same city someone commented that they are making $30 per hour? It's sad but I think that high rate is very much an exception.

I never heard anyone happy about the state of employment for nannies since 2008 in this area.

Diane said...

I think your article is 100% right. That in the city areas there is still great need for nannies. People living in the midwest and south are often poorer and can't even afford nannies.

I used to make $15 - $18 for every job and now for the past two years no one want to pay even $15 hour. Parents keep telling me they can pay no more than $12 or $13!!! It's gone down.

I think nanny websites are why rates are lower. Parents shouldn't always hire the cheapest nanny but they usually do. Until something terrible happens with their inexperienced nanny they do it the cheap and easy way. After their nightmare experience they finally use a proper nanny agency and will pay more for an experienced professional.

Maria Lopez Miami FL said...

I think the demand is still high but with unemployment still high that there are a lot more people looking for work as nannies.

Eva said...

I agree that a lot of unemployed workers from other fields are taking nanny jobs. Illegals, young nannies and the desperate take low paying nanny jobs, pushing us good ones out of jobs. Rates are lower than ever since the demand for jobs is obviously higher than the need for nannies right now.

Steph 6 said...

Yes, both! Demand is down because of unemployment. The nanny industry has more people looking for jobs than there are jobs. Rates are down for the same reason!

Anonymous said...

Hi-Andrea, Professional Nanny for over 10 years in the Northern, NJ area here...

Yes, sorry I ment $20 per hour for "easy" babysitting. (my keyboard sticks and I did not have time to proof-read, so sorry for all my typos.)
By easy- I mean, kids are already fed, and in PJ's- so just an hour or so of play and bed-time routine and then 4 hours of mostly down time after toys are cleaned up and dishwasher is unloaded. (no other duties are asked- the extra's are whatever I choose to do- just because the family is so great- and I want the parents to get a break from some household chores.)

As for the $30 per hour rate in NJ...
5 years ago in the Northern NJ area I was earing near $20 an hour for a nanny job with one child. But that was after 5 years of raises.

In the fall of 2008 the economy tanked and around that time my job ended. I knew I was going to have to lower my rates quite a bit-to get in the door with a good family, but knew I what I was worth. Nanny jobs were no longer on the "what I now considered a fair market salary for an exp.d live-out nanny" which I felt was a min. of $17 to $2O per hour.
(rates depened on ages/number of children, duties, benefits, perks, etc.)

So the "fair market" rate went way down again- most families offered in the $12 range. But I knew I was a better nanny who should earn more than $12 per hour. So it took alot of searching to find that family who shared my feelings on what a 'fair salary' was.

After 3 years I see it slowly creeping back up. And any exp'd. nanny with above average skills and flexiblity can earn at min. $15 per hour.

$30 per hour? I think that is great, but it's few and far between-and most likely that pay is from a high profile family or a top notch nanny agency- and then for a job where you have to give them 99% of your life.

To be honest I'd be a bit hesitant to take a nanny job for $30 per hour- not because I don't feel I what I bring to the family is worth it- because I fear I could never say no- to anything they'd ask, because they were paying me so well.