Fewer Kids, Fewer Workers
Why Colorado’s Economic Future Depends on Child Care Innovation
By Alethea Gomez
Colorado Executive Director, Executives Partnering to Invest in Children (EPIC)
At EPIC, we spend a lot of time talking with business and community leaders across Colorado about child care; not just as a family issue, but as a critical pillar of economic infrastructure. What we’re seeing across the state right now underscores just how urgent that conversation has become.
Colorado is at the crossroads of a major demographic shift. Birth rates are falling, Boomers are retiring, and the number of working-age residents is shrinking — especially in rural areas. Together, these trends are fueling labor shortages and reshaping our economic future.
Rural Colorado is Aging, and Families Are Leaving
Take Routt County in Colorado, for example. A recent housing demand study* shows that since 2010, the number of residents over age 65 has increased by 158%, while the number of children has declined by 9%. Seniors now outnumber children in the Yampa Valley. In Steamboat Springs, the trend is even more dramatic: an 182% increase in older adults and an 11% decline in children.
These shifts aren’t just demographic facts; they’re signals that communities are becoming less viable for working families. Housing prices are climbing, child care options are shrinking, and more young people are being priced out. It’s not surprising that the fastest-declining population group in Routt County is young adults aged 18 to 24, according to a study commissioned by the Yampa Valley Housing Authority.*
We see similar trends in many of Colorado’s resort and rural regions. Wealthy retirees are moving in, while the very workforce that supports their communities (like restaurant staff, teachers, health care providers and child care providers) can no longer afford to stay.
And the issue isn’t just happening in rural Colorado – it’s occurring statewide. According to the July 2025 Common Sense Institute report Fewer Movers, Bigger Problems, net migration into Colorado as a whole has also slid. It’s down 52.5% since 2015 equating to 36,000+ fewer new residents last year alone. In metro areas like Denver, the drop is even more pronounced, with migration down nearly 70%, while Colorado Springs saw a third fewer arrivals. Rising housing costs, demographic aging and lack of affordability explain much of the trend.
The Workforce Implications Are Immediate
As we also lose younger residents and working parents, the talent pool across Colorado contracts. With Boomers retiring, employers in every sector are facing growing competition for a dwindling workforce, and there are plenty of jobs that AI and automation will never be able to replace.
Child care is a big part of that equation. If we don’t have systems in place that allow parents to stay in the workforce, we lose those workers and the economic activity they generate. But the child care landscape is evolving. In some rural communities, the population of young children is now too small to sustain traditional care models.
We recently spoke with a provider in a rural Colorado town where the only center operates part-time with just five children. They don’t have enough staff or families to stay open full time. This isn’t an isolated case. It’s part of a larger statewide trend.
We Must Evolve Our Models
As child care leaders, business voices and public officials, we must recognize that the models that once worked may not work anymore — especially in communities where the population of young families is declining.
We’ll need to think creatively and innovatively:
- Regional or mobile child care models may help bridge gaps in sparsely populated areas.
- Shared services and hybrid funding solutions can make care more sustainable for small operators.
- Stronger partnerships between business and government are critical to ensuring that workforce infrastructure keeps pace with a shifting demographic reality.
The Future of Colorado’s Economy Depends on Families
If families can’t afford to live and work in a community, that community will eventually struggle to sustain its economy. Child care is a leading indicator of community sustainability, one that every community leader should have on their radar. It’s also one of the first systems to break down when families are pushed out and one of the most important to rebuild or strengthen if we want to reverse the trend.
Future-forward communities thinking about their success now and into the future have child care on their radar because they know its importance relative to growth and financial, economic and community stability.
At EPIC, we’re committed to bringing the business voice into this conversation because we know that investing in children is investing in Colorado’s future workforce.
Whether you’re in business, policy or philanthropy, now is the time to act. Colorado’s demographic trends are clear — and the longer we wait, the harder it will be to reverse course. Let’s ensure our communities are built for families, workers and long-term success.
*Sources: The Yampa Valley Bugle and a study commissioned by the Yampa Valley Housing Authority and conducted by Denver-based Economic & Planning Systems Inc.