Research summary - Unlicensed home-based child care providing businesses in Canada
From: Employment and Social Development Canada
Official title of the full report: Unlicensed home-based child care providing businesses in Canada: an overview
Authors of the full report: Yigebashal Mekonnen, Leanne Findlay, and Neil Huber (Statistics Canada)
Alternate formats
Unlicensed home-based child care providing businesses in Canada [PDF - 249 KB]
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Why this study
The study examines unlicensed home-based child care businesses (UHCC) in Canada, identifying:
- the number of UHCC operating in January 2021
- the number of children enrolled and their age
- the proportion of UHCC with available spaces
- the types of child care options offered (for example, full time and part time care)
- the average daily child care fee charged by UHCC
- the average daily fee they charged by provinces/territories
- the types of buildings in which UHCC operate, and
- the impact COVID-19
What we did
The study was a descriptive analysis using information from the pilot version of the Canadian Survey on the Provision of Child Care Services 2021. The data collection was from January 11 to February 19, 2021. It provided information for a profile of unlicensed child care in Canada.
What we found
The key findings of the study revealed the following:
- in 2021, approximately 28,000 unlicensed home child care centres served almost 100,000 children. These children were aged 0 to 5, with 2 in 5 UHCC having an available space for more children
- UHCC represent 66% of all home-based child care businesses nationally, serving 57% of children enrolled in home-based child care
- compared with licensed home-based child care businesses, UHCC businesses offered more child care program options:
| Type of care | Percentage of UHCC |
|---|---|
| Full-time | 86% |
| Part-time | 30% |
| Before school | 14% |
| After school | 18% |
| Evenings | 4% |
| Weekends | 3% |
| Overnight | 2% |
| Drop-in | 8% |
| Flexible program | 15% |
In January 2021, the average daily fee a UHCC charged was:
- $37/day for children less than 18 months old
- $38/day for children 18 months to less than 36 months old
- $36/day for children 3 years to less than 5 years old, and
- $30/day for children 5 years and older
COVID-19 impacted many UHCC:
- 51% of UHCC businesses shut down temporarily but have reopened
- 21% were shut down temporarily and remained shut down at the time of the survey
- 11% remained partially operational
- 8% remained fully operational
- 6% remained operational serving frontline workers, and
- 4% were shut down permanently for reasons unrelated to COVID-19
What it means
The purpose of this study was to gain a better understanding of UHCC in Canada. This information is important to understand the breadth of child care service providers and the types of care used by children and parents/guardians. It shows the contribution that the unlicensed sector makes in the provision of child care in Canada.
The results show that the majority of children in home-based child care were in UHCC. Many parents are using unlicensed care for their young children. They offered more child care program options than licensed home-based child care.
Contact us
Income Security and Social Development Branch, Early Learning and Child Care, Data and Research Unit
Email: esdc.nc.sspb.research-recherche.dgpss.cn.edsc@hrsdc-rhdcc.gc.ca
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