Every third daycare centre in Switzerland making a loss

The study found that around half of childcare staff do not have a degree in education © Keystone / Gaetan Bally

One in three daycare centres in Switzerland posted a loss last year. The first-ever study of the key business figures of daycare centres also revealed that the sector has a three times higher staff resignation rate.

The Swiss Childcare Association (Kibesuisse) announced on Thursday that owing to high staff costs, which account for three-quarters of total expenditure, daycare centres do not have much in the way of income. Two-fifths of the daycare centres surveyed closed the 2022 calendar year with a profit and a third with a loss; 13% of the daycare centres surveyed did not want to provide any information.

Another characteristic of the sector is the fluctuation rate. The resignation rate for daycare centres is 30%. This rate is normally around 10%, according to an enquiry. As a result, the three biggest challenges faced by respondents in their day-to-day operations also relate to staff. Sickness absences, recruiting staff with appropriate qualifications and filling advertised positions are the main problems faced by daycare centres.

Kibesuisse wrote that around half of childcare staff do not have a degree in education. The lack of a funding model means that childcare centres are dependent on untrained staff to survive. One solution could be a subsidisation model that would allow the employment of childcare staff with tertiary qualifications. Such a model is already being implemented to some extent in French-speaking Switzerland and Ticino.

The Kibesuisse survey data also shows that an average of 0.4 positions per daycare centre were not filled; 95% of the daycare centres surveyed had at least one vacancy in the year of the survey.

Association calls for better funding models

Financing models are needed that would allow daycare centres to cover their costs. In terms of quality development, funding should also include subsidising the training and further education of childcare staff, the association added. This would not only improve the professional prospects of staff, but would also encourage them to stay. This would have a positive impact on quality and continuity in terms of resignation rates and staffing.

Commissioned by Kibesuisse, the Infras research institute carried out statistical studies at daycare centres in Switzerland in spring 2023. At the end of 2022, 31,632 children were being cared for at the 621 daycare centres surveyed.

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