68% surveyed said childcare system ‘not fit for purpose’

A new report published this week has highlighted how gaps in childcare provision are creating sustained operational challenges for employers across Cork.

The report from Cork Chamber found that 68% of those it surveyed evaluated the current Irish childcare system as ‘not fit for purpose’. 36% said childcare challenges have directly resulted in employees leaving the organisation or declining roles while 57% said childcare challenges are having a ‘moderate’ or ‘significant’ impact on their workforce.

The report also points to a clear opportunity for businesses to be part of the solution, particularly through the development of employer-supported childcare models such as corporate crèches, where appropriate Government supports are in place.

As Cork continues to experience significant growth and investment, this report emphasises that childcare must be recognised as essential economic infrastructure underpinning workforce participation and long-term regional competitiveness.

In the survey, 75% of respondents have seen an increased demand for flexible working arrangements as a result of childcare challenges.

69% of respondents would consider supporting childcare through models such as corporate crèches or tax-incentivised partnerships with providers if appropriate Government incentives were introduced.

Cork Chamber President Susie Horgan said: “Cork’s economy is growing strongly, but childcare is increasingly impacting on workforce participation. Over a third of employers are seeing staff leave or turn down roles due to childcare pressures, and 88% report a disproportionate impact on women’s participation and progression. These are real operational constraints affecting productivity, retention and talent development.”

The report draws on insights from Cork Chamber members, HR professionals, and childcare providers, and identifies structural issues across affordability, availability, and staffing capacity. These constraints are contributing to recruitment difficulties, reduced working hours, and retention challenges for employers.

Fiona O’Donovan, Public Affairs Manager at Cork Chamber said: “The solutions proposed in this report are practical, focused on affordability, capacity and workforce stability, and can deliver meaningful improvements for both employers and employees.

“There is strong appetite among employers to support solutions, particularly where policy frameworks enable it. Nearly 70% would consider engaging in employer-supported childcare models if incentives were in place.”

Cork Chamber is now calling for targeted, practical measures to strengthen childcare provision and support workforce participation including encouragement of employer-supported childcare, including tax credits for corporate crèches and fee caps based on percentage of income to ensure affordability.

Cork Chamber CEO Conor Healy said: “Childcare is a fundamental part of the infrastructure needed to support investment and talent attraction in Cork. Joined up thinking and solutions-oriented approach is needed to enhance service provision. Targeted Government action on affordability, capacity and workforce conditions will be critical to unlocking that potential.”