High demand spurs expansion of Germany’s Daycare System

Newsworm
with
AFP
August 22, 2025
Demand for childcare in Germany remains high despite declining birth rates. Participation in daycare centers and family-based childcare continues to rise, while the government invests billions to expand capacity, improve quality, and secure skilled staff for early education.
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The demand for childcare services in Germany continues to grow, even though the number of births is decreasing. This is highlighted in the latest edition of the report “Kindertagesbetreuung Kompakt”, published today. The figures show that more children across all age groups are attending daycare centers and private childcare services. At the same time, there remains a significant gap between available places and the demand from parents.

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Enrollment in Daycare Services Continues to Grow

The report shows that in 2024, 37.4 percent of children under three attended daycare, compared to 36.4 percent in 2023. Despite falling birth rates, participation is on the rise. In East Germany, the priority is shifting toward maintaining existing childcare places, while in West Germany, additional capacity must still be created to meet parental demand.

Almost all parents of children between three years and school entry want childcare for their children. The figures show that 98 percent of parents in this age group express demand, while 91.6 percent of children are already enrolled in daycare or childminding arrangements. For children under three, the gap between supply and demand remains substantial, with a shortfall of 14.6 percentage points.

Early Education as a Foundation for Equal Opportunities

Federal Minister of Education and Family Affairs Karin Prien underlined the crucial role of daycare in children’s development. She stated that daycare centers give children early educational opportunities and the chance to experience community, creating the foundation for success in school and later careers. Almost all children between the age of three and school entry attend a daycare facility, while participation among children under three continues to rise steadily.

Prien emphasized that parents need daycare centers as reliable partners, and therefore, expansion, modernization, and preservation of childcare services remain top priorities.

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Federal Funding for Infrastructure and Quality Development

The federal government has committed to strengthening childcare infrastructure and improving quality. Out of the €6.5 billion special fund for infrastructure and climate neutrality, around €3.8 billion will be used specifically for the expansion of childcare facilities. Additionally, through the Kita Quality Act, the federal government is providing the states with approximately €2 billion annually until 2026. These funds can be directed toward measures such as improving educational quality and ensuring the long-term security of skilled childcare staff.

Looking ahead, the coalition agreement of the 21st legislative period foresees that the Kita Quality Act will be replaced by a new Quality Development Act. This next step is designed to ensure sustainable and continuous improvement in early childhood education.

Childcare Professionals as the Key to Expansion

The report makes clear that the success of both expanding capacity and improving quality depends on the availability of skilled childcare staff. In West Germany, the ability to build new places largely depends on attracting and retaining qualified personnel. In East Germany, the presence of additional staff would help stabilize and strengthen existing services, reducing the number of unplanned closures due to staff shortages.

To support workforce development, the federal government has introduced the “Kompass Erziehungsberufe”, an online platform that helps interested individuals explore pathways into careers in daycare and all-day schooling. This tool provides guidance on training and entry opportunities for those considering work in childcare and education. The platform can be accessed at www.kompass-erziehungsberufe.de.

Outlook for Childcare in Germany

The findings of “Kindertagesbetreuung Kompakt” highlight both achievements and ongoing challenges. While participation rates are increasing, especially among children under three, demand continues to exceed supply. The federal government’s investments in infrastructure, quality, and workforce development are central to closing these gaps and ensuring that every child in Germany has access to high-quality early education.

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