For the economy

A strong economy depends on people’s skills, creativity, motivation and knowledge. Investment in young children has high economic and social returns, because its impact on people’s skills and dispositions lasts a lifetime.

Public investment in quality early care and education is an investment in the next generation. It is particularly important in a recession, as it lays the foundations for a strong economy in the future.

While investment in human capital is essential at all levels of the education system, the returns are highest for education and supports in the earliest years. Those who do not receive early supports may require much more costly interventions later in life. 

Economic cost-benefit analysis provides a strong rationale for quality early care and education. Economic analysis has consistently shown positive returns on investment, with benefits ranging from 2.5 to 16 times the costs.

For more on why quality early care and education matters for the economy, and references to research evidence, see our leaflet The foundations of growth - investing in the next generation.