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Q: General Information about market for Nannies in US ( Answered 4 out of 5 stars,   0 Comments )
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Subject: General Information about market for Nannies in US
Category: Business and Money
Asked by: kt7076-ga
List Price: $200.00
Posted: 11 Aug 2004 13:18 PDT
Expires: 10 Sep 2004 13:18 PDT
Question ID: 386629
I am interested in learning more about the market for nannies in the
US.   I have referenced the question below, in addition to the
websites listed below, but still need clarification on the following
questions.

http://answers.google.com/answers/threadview?id=185485
www.nanny.org
www.nannyassociation.com
www.americannannyschools.com

What is the average nanny turnover rate?
What is the average length of nanny tenure?
What is the average nanny salary?
Of the 298K estimated in-home care providers, what is the % difference
between nannies and au-pairs?
(http://www.ccw.org/pubs/workforceestimatereport.pdf
Answer  
Subject: Re: General Information about market for Nannies in US
Answered By: larre-ga on 30 Aug 2004 16:00 PDT
Rated:4 out of 5 stars
 
Thanks for asking.

As you are undoubtedly aware, statistics and demographics for this
occupation are quite limited, however, I've located statistics and/or
datapoints for each of your additional questions.



What is the average nanny turnover rate?
----------------------------------------------------------------------

The industry average is an 17% turnover rate for family child care
providers.  Add to this, an 100% turnover rate for Au Pairs, due to
the Visa limitation on one year.

http://www.ccw.org/pubs/workforceestimatereport.pdf


Replacement needs in this occupation are high. Many childcare workers
leave the occupation temporarily to fulfill family responsibilities,
to study, or for other reasons. Some workers leave permanently because
they are interested in pursuing other occupations or because of
dissatisfaction with hours, low pay and benefits, and stressful
conditions.

Childcare Workers | Working Conditions
http://stats.bls.gov/oco/ocos170.htm#conditions



What is the average nanny salary?
----------------------------------------------------------------------

In the Bureau of Labor Occupational Statistics, Nanny wages are lumped
with all other childcare workers, one of the lowest paying income
classifications, with a mean annual wage of $17,400.

Bureau of Labor Statistics | Childcare Workers
http://www.bls.gov/oes/2003/may/oes399011.htm


In the statistics referenced just above, San Francisco is classified
as one of the highest paying metropolitan areas for childcare workers.
I've located a guide to Salary Guidelines in this area.

San Francisco Salaries: "Nannies Full-time Nannies who live out
typically earn between $2600 and $4000 per month. Live-in Nannies
usually earn between $1800 and $2600 per month. Full-time and
Part-time Nannies generally earn between $14 and $20 per hour. On-call
nannies typically earn $16 per hour."

Salary Guidelines for Household Employees
http://www.tandcr.com/candidate/articleSalary.html


In a recent INA national salary survey of nannies nationwide, the
results "reveal that on a national level, live in nannies earn an
average of $532 per week and live out nannies an average of $590 per
week." I think you'll be interested in scanning the entire .pdf
document, which breaks down the survey results by metropolitan area.

International Nanny Association | Salary and Benefits Survey 2003-4
http://www.nanny.org/INA_Salary_Survey2.pdf

"Nannies may be paid "on salary" rather than "by the hour," but if so
the "salary" must be at least as much as would be required under the
hourly rate(s) of the minimum wage laws. In other words, a "salary"
must be translated into an hourly rate to determine whether wages
comply with the FLSA. The arithmetic formula is to divide the total
compensation received into the total number of hours worked, on a
weekly basis. The quotient must be at least minimum wage."

Nannies and the Fair Labor Standards Act
http://www.nannynetwork.com/library/Parentlib/flsa.cfm



Of the 298K estimated in-home care providers, what is the % difference
between nannies and au-pairs?
----------------------------------------------------------------------

I'm afraid that the referenced category with a total worker figure of
298K includes in-home family day care operators and assistants.

I've pulled a couple of typical definitions:

Texas: "Listed Family Home: A caregiver who is at least 18 years old
that provides care in her own home for compensation, for three or
fewer children unrelated to the caregiver, for at least four hours a
day, three or more days a week, and for more than nine consecutive
weeks. The total number of children in the care of a listed family
home, including children who are related to the caregiver, must not
exceed 12 at any given time.

Registered Family Home: A caregiver who provides care in her own home
for four to six children, birth to 14 years for less than 24 hours a
day. Child day care can be provided for six additional school-aged
children before and/or after the customary school day. The total
number of children in care, including children related to the
caregiver may not exceed 12."

Michigan: "Day Care Family Home (DF) Family day care home means a
private home in which 1 but fewer than 7 minor children are received
for care and supervision for periods of less than 24 hours a day,
unattended by a parent or legal guardian, except children related to
an adult member of the family by blood, marriage, or adoption. Family
day care home includes a home that gives care to an unrelated minor
child for more than 4 weeks during a calendar year."

http://www.tdprs.state.tx.us/Child_Care/About_Child_Care_Licensing/default.asp
http://www.cis.state.mi.us/brs_cdc/sr_lfl.asp

In light of this discrepancy, I've included additional outside
sources, in order to introduce some extrapolation possiblities.


1996: "With an unofficial estimate that of 75,000 live-in nannies in
the U.S." (http://www.taxprophet.com/hot/june96.html)

"Childcare workers held about 1.2 million jobs in 2002. Many worked
part time. About 2 out of 5 childcare workers were self-employed; most
of these were family childcare providers.

Sixteen percent of all childcare workers are found in child daycare
services, and about 14 percent work for private households."

http://stats.bls.gov/oco/ocos170.htm

If we apply the 14% figure to 1.2 million we get a middle estimate of 168K. 

""How many "businesses" are there in the U.S.? Most recent available
data shows over 25 million U.S. business entities filing income tax
returns  - a figure that  has been growing at a rate of around 2%
annually. This  includes self employed individuals such as  650,000
real estate agents, over 600,000 nannies..."

http://www.bizstats.com/businesses.htm 

Of this total, according to the previous answer (and underlying US IRS
reference source), there are approximately 12,000 Au Pairs in the US
at any given time. The percentage differences would be:

  75,000: 16% Au Pairs
 168,000:  7% Au Pairs
 298,000:  4% Au Pairs
 600,000:  2% Au Pairs
 


What is the average length of nanny tenure?
---------------------------------------------------------------------

I've found only one source for nanny tenure, but the data is very
specific, taken from a poll of 650 Nannies:

"What is your longest period of employment with one family?

- 1-2 years = 27%
- 3-5 years = 25%
- 2-3 years = 23%
- 5-10 years = 12%
- 10+ years = 3%"

http://www.nanny.org/INA_Salary_Survey2.pdf


I do hope this information is helpful. Should you have questions about
the material or links provided, please feel free to ask.

---larre



Answer Strategy / Search Terms
----------------------------------------------------------------------

nannies employed U.S.
bureau labor statistics childcare
nanny salary
childcare workforce


Additional Resource
----------------------------------------------------------------------

I located one additional resource that doesn't fit neatly into any of
the questions above, but might be useful as a datapoint, when applied
to statistics from other sources.

Primary childcare arrangements for children under five with employed mothers:

Daycare center (workplace and community)  32%  
Parent care                              *24  
Other family member                       23  
Family daycare                            16  
Nanny or babysitter                        6  

*Mother and father work alternate schedules; father stays home to care
for the child; parent cares for the child at work; self-employed
parent cares for the child at home.

Regional Review (Boston)
http://www.bos.frb.org/economic/nerr/rr2000/q3/daycare.htm
kt7076-ga rated this answer:4 out of 5 stars
Thank you.

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