Paying Workers a Living Wage

New Mexico has made significant strides in investing in early childhood development, and new evidence shows that these investments are having a positive impact on child well-being. The state’s Childcare Assistance program plays a key role in reducing child poverty. When the Census Bureau only measures parental income, New Mexico’s child poverty rate stands at a concerning 27%, the highest in the nation. However, when factoring in anti-poverty programs such as SNAP, housing assistance, and tax credits, the rate drops dramatically to less than 9%, even falling below the national average. One of the key components in this improvement is the state’s Childcare Assistance (CA) program, which offers co-pay-free child care to nearly all New Mexico families.

While the success of the CA program in reducing child poverty is commendable, there is a glaring issue that needs attention: the wages for early childhood education (ECE) and child care workers. These workers are essential to the success of the CA program, yet their pay remains shockingly low. The median wage for ECE workers in New Mexico was $12.03 per hour in 2022, well below the living wage of $15.11 for a single adult. This creates a wage gap of 20%, or $3.08 per hour. If the CA program is capable of lifting children and families out of poverty, why not extend that same support to the workers who provide the care?

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Research shows that higher wages for ECE workers lead to better outcomes for children. Low pay is linked to high turnover in child care centers, which disrupts the continuity of care and hinders the development of children. In fact, a study by the Minneapolis Federal Reserve found a direct correlation between lower wages and higher turnover in child care centers. Stability in child-teacher relationships is crucial to a child’s development, and paying workers a living wage is essential to reducing turnover and maintaining high-quality care.

Since 2019, New Mexico has made significant progress by establishing an Early Childhood Education and Care Department, creating an Early Childhood Trust Fund, and tapping into the state’s Land Grant Permanent Fund to support ECE programs. However, these accomplishments will not reach their full potential unless ECE workers are paid a living wage. Paying ECE workers better wages is vital to ensuring the success of the state’s investments in early childhood education.

Investing in a well-compensated and professional workforce is key to ensuring that New Mexico’s children thrive. Affordable child care not only helps families escape poverty, but it also offers a pathway to dignified, fulfilling work for the largely female, predominantly women of color workforce. By improving wages in the ECE sector, New Mexico can foster a skilled workforce that contributes to diversifying the state’s economy.

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The upcoming legislative session provides an opportunity to address this critical issue. Lawmakers can take action to raise wages for ECE workers and strengthen other policies that promote economic stability and equity, such as Baby Bonds, guaranteed income programs, and paid family leave. These are evidence-based solutions that will ensure New Mexico’s children and families have the resources and support they need to thrive.

Jacob Vigil, MSW, is a Deputy Policy Director at New Mexico Voices for Children. These opinions are his own and do not necessarily reflect the views of KRWG Public Media or NMSU.

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