From family size to government policy, any number of trends can influence the number of children attending early childhood education, the types of services that thrive and the way centres need to function. New Zealand is always changing, and the early childhood sector must change with it. As a centre owner, understanding these key trends will help you stay relevant to your families and future-proof your business.
Population and family make up
In line with the rest of the world, New Zealand is facing an ageing population - both in the number of older people as a percentage of the population and the age at which people do things. With improved healthcare, older people are increasingly remaining in the workforce or taking time to travel or take up hobbies, potentially leaving them less time to be looking after grandchildren on a regular basis.
Statistics also show that the birth rate in New Zealand is dropping with more families having just one child. Many people in New Zealand are also becoming parents at an older age through circumstances such as career choices or being in second relationships.
As a popular country for migrants, New Zealand must also deal with another population variation. The numbers and origin countries do change but, for now, migration from China and India remains high. The migrant population bring their own opportunities for ECE centres, both in terms of determining these families use of and need for ECE, especially if they no longer have access to family support and in providing diverse learning experiences and welcoming cultures for these families.
More local migration trends, such as families shifting out of Auckland and population movements, post the 2011 Christchurch earthquake, are also having an effect on the need for childcare centres.
Changing expectations about child development and childcare
Today’s parents are very different to those of previous generations. Modern parents have access to great amounts of information and research about child development from the early years onwards. We know, for example, that reading to and talking to children in the early years helps speech and literacy development throughout school.
This knowledge, combined with the rise of smaller families where parents have more focus, is leading parents to become increasingly involved in and informed about their child’s early education. Centres find themselves under increased scrutiny from parents armed with knowledge and must appropriately deal with these parents.
Studies around early childhood have also influenced trends - the benefits of small groups sizes and more individualised care, for example, are likely linked to a growth in home-based care where only a few children attend at a time.
| TREND | IMPACT |
|
Ageing population remaining longer in the workforce. Grandparents have less time to be looking after grandchildren. |
Demand on ECE services will keep increasing as family support becomes less available. |
| Increasing cost of living requires both parents to unusual work shifts and long commute. | Need of Childcare centres that are more open to flexible hours. |
| Dropping birth rate with more families having just one child, and people becoming parents at an older age. | Slower population growth means increasing competition in the market to maintain enrolments in childcare centres. |
| The migrant population from China and India remains high. However, diversity is expected to increase further with the arrival of other nationalities. | Services providing diverse learning experiences and welcoming cultures for these families are sought after. |
| Parents have greater access to information about child development, thus they are more aware of educational outcomes. | ECE services that are clear on the educational and early-development outcomes they deliver are likely to be valued more than ambiguous daycares. |
| Increased competition childcare centres and growth in home-based care. Small groups sizes and more individualised care are perceived as more beneficial. | Centres need to focus on services that innovate ways to provide better proof-of-learning. |
| The sector has become increasingly dominated by private for-profit centres. The number of community-based and non-profit centres has reduced as has the number of Playcentres. | Service options and flexibility will increasingly become a critical competitive factor for ECE services. |
| Certain family groups are losing access to traditional childcare services, and might not be suitable or have the financial means to access for-profit preschool. | Informal care, playgroups, and community-based centres will still be an option in the medium term until further Government intervention. |
Economic and work changes
As the cost of living becomes more expensive, more families find themselves in the situation of needing both parents to work, even when children are still young. This places increasing pressure on early childhood centres to care for more children, even babies as their parents return to the workforce earlier - in many cases before their parental leave is over.
Families working shifts also create a need for childcare centres to be open more flexible hours to accommodate these unusual work patterns.
A report from the Ministry of Social Development found that many mothers in lower socio-economic groups or those with irregular working hours were less likely to send their child to an early childhood service and more likely to use informal care. While the report did not show clearly whether this was a choice or whether it was because centres did not cater to their needs, it highlights an area that must be considered for ECE services. Service options and flexibility will increasingly become a critical competitive factor for ECE services.
Economic changes also mean centres must consider the options available to lower-income families. Attending early childhood education brings benefits to children throughout life, so lower income families must not be disadvantaged from accessing high-quality ECE due to economic reasons. Whether this is through government subsidies, more community-based care or individual centres working with local families, solutions will need to be found to ensure no child misses out on the opportunity to develop the skills they need.
Government interventions
Although not as regulated as the school sector, Early Childhood Education is still at the mercy of government interventions to a certain extent. Any changes in the government are likely to lead to changes in the ECE system.
In recent years these changes have included a subsidy for some childcare hours for 3 and 4-year-olds, a reduction in the emphasis on qualified teachers at a centre and a focus on participation - particularly in low socio-economic areas and among certain cultural groups.
Outside of the sector but still influential was the Future Focus Welfare Report Package, introduced in 2010 which obliged beneficiaries with children under-6 to have an employment plan. There is a potential shift of families priorities from care during working hours, to educational outcomes. ECE services that are clear on the educational and early-development outcomes they deliver are likely to be valued more than ambiguous daycares.
Word-of-mouth referrals are still the primary driver for new enrollments for the majority of centres. Services that innovate ways to provide better proof-of-learning are likely to capitalise on this predicted increase in parental awareness of educational outcomes.
Commercialisation and privatisation of services
One last big trend to affect the ECE sector has been the growing private sector within the sector.
The sector has become increasingly dominated by private for-profit centres. The number of community-based and non-profit centres has reduced as has the number of Playcentres across New Zealand.
This shift towards profit-making centres has led to increased competition and in some cases oversupply of childcare centres in particular areas. In other areas, families are losing access to childcare because they have no option but for-profit centres that might not be suitable or financially accessible for them.
While all of these trends have different impacts on the ECE sector and parental choice, it is likely that a combination of factors come into play when influencing parent’s decision whether or not to use childcare and which type of service to access.
Both migration, leading to reduced family support, and changing work commitments may mean that more families are using childcare even in cultures where traditionally the child would be looked after within the extended family for example. So early childhood service owners and managers must be keenly aware of all of these trends.