Research by WBG shows that investing in free universal childcare of high quality in the UK would cost about 3% of GDP and could yield close to two million full-time jobs, 75% of which would go to women.
This kind of analysis has so far concentrated on the jobs necessary to meet the demand created by an increase in government expenditure on social infrastructure. It is important to consider the effect on labour supply and unpaid care work as well. Investing in high-quality care services, and especially in childcare, is more likely to alleviate some constraints to supplying paid employment for carers. Childcare investment would reduce the 10 point gender employment gap by half. And the investment would be recouped at 90% through tax revenue and reduced social security spending on out-of-work benefits as employment is created and earnings increased.