What is Causing a Shortage of Jobs for Nannies?

Factors Affecting the Supply and Demand of Nannies

We have been discussing that the average nanny only makes $19,300 per year compared to a national mean for all workers of $44,410. Plus, the Bureau of Labor Statistics confirms that wages for childcare workers have decreased over the last few years.

We have speculated that the young unemployed, professionally unemployed, au pairs, and illegals are just some of the reasons there are less great nanny jobs for nannies in the past few years.

Here are more factors affecting the supply and demand for nannies:

Demand: Decisions beyond the control of nannies can seriously impact the need for nannies. Recently there are announced layoffs at Cisco, Baystate Health, Goldman-Sachs, and Merck. These companies will reduce the number of families needing to hire nannies. Of course, the reduction in family income will also affect the ability to hire domestic workers.

Supply: Layoffs of state and local government employees, especially teachers, increases the number of people able and willing to work as nannies. Underemployed and part-time employees of other occupations are willing to replace professional nannies so they can augment their income.

Other Factors: Austerity budgets may cause the delay or cancellation of projects that ultimately help provide opportunities for nannies. Delaying a tunnel project or road construction that provides access to high-paying jobs hurts the prospects of nannies in the long-term because parents do not need to hire and cannot afford to hire.

What factors affecting supply and demand have the most affect on nanny jobs in your area?


  1. Shortage of jobs in my area are due to Wall St in 2008. Goldman Sachs laid off dozens or more just in the town I work in. Journalists in town lost jobs too, newspapers and magazines sales decline with the Internet.Nanny websites lower our salary in our area. In the NYC area the cost of living is higher than in other parts of the country but parents compare wages online with the entire country.

  2. I came to DC because of the economy and I left the greater Dayton area because of it. 😦 I really did like being there as a nanny, they had great librarians for storytimes, a lot of free nature programs, inexpensive rec programs, some great parks … which have also lost money and budgets. But Dayton had a big GM plant that shut it's doors, then other industry in the area did layoffs too.

  3. I have friends that lost their awesome nanny on the misconception they could find good care for cheaper. Here in NJ now that Gov Christie is cutting millions in education teachers are being forced into retirement and losing their jobs. They will enter the nanny work force (I make $65K+ here in Jersey)and the competition is higher. So there is more competition for the good nanny jobs!When parents have a special needs child or homeschool they will chose the experienced and educated teacher over a less educated caregiver. Household Manager & NannyFelicia Taylor Moorestown NJ

  4. Beleive it or not I haven't heard too many horror stories for nannies and I live and work right in the middle of New York and employed by parents who work on Wall Street. IMO most career, professional, well paid, experienced nannies aren't working the nickel and dime, hourly pay jobs, but salaried positions in which their employers can afford to give them benefits, bonuses, and so on. We still have jobs.

  5. I think lack of nanny jobs is kind of a popular topic now. I think it's more competitive now, perhaps. So, nannies simply market yourselves. So what if nannies have to scale down your expectations? Maybe you will have to drive farther or not expect as many benefits. As to have a salary re-negotiation in 6 months if parents cannot afford to pay you as much as you would like now. In 6 months they may feel more financially secure.Simon, au pair

  6. Every reason you've listed is why we can't find jobs. It's not that there aren't jobs completely it's just such lower rates then before.

  7. All the reasons stated plus online websites offer bad jobs!

  8. Felicia is correct about Gov. Christie's budget causing the loss of teaching jobs. As noted in "Other factors", Christie also stopped the construction of a tunnel that would have opened an entire region of NJ to high-paying Manhattan jobs. Same taxes, fewer services, fewer opportunities. Just a media hog.

  9. What's causing the shortage is every single thing you have listed over the past few weeks: parents losing jobs, young adults highest unemployment rate since WWII, websites allowing jobs for under minimum wage, au pairs are cheaper, illegals are cheaper ….

  10. Before searching for jobs for nannies, candidates should think about what type of lifestyle they want and how their job will be a part of it. Nannies can work either on a full time or part time basis, and some jobs for nannies offer housing as well. Some nannies also specialize, offering their childcare services for families with multiples, special education needs or infants.Thanks.

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