Factors Affecting the Supply and Demand of Nannies
We have been discussing that the average nanny only makes $19,300 per year compared to a national mean for all workers of $44,410. Plus, the Bureau of Labor Statistics confirms that wages for childcare workers have decreased over the last few years.
We have speculated that the young unemployed, professionally unemployed, au pairs, and illegals are just some of the reasons there are less great nanny jobs for nannies in the past few years.
Here are more factors affecting the supply and demand for nannies:
Demand: Decisions beyond the control of nannies can seriously impact the need for nannies. Recently there are announced layoffs at Cisco, Baystate Health, Goldman-Sachs, and Merck. These companies will reduce the number of families needing to hire nannies. Of course, the reduction in family income will also affect the ability to hire domestic workers.
Supply: Layoffs of state and local government employees, especially teachers, increases the number of people able and willing to work as nannies. Underemployed and part-time employees of other occupations are willing to replace professional nannies so they can augment their income.
Other Factors: Austerity budgets may cause the delay or cancellation of projects that ultimately help provide opportunities for nannies. Delaying a tunnel project or road construction that provides access to high-paying jobs hurts the prospects of nannies in the long-term because parents do not need to hire and cannot afford to hire.
What factors affecting supply and demand have the most affect on nanny jobs in your area?