The DACH Childcare Monitor shows current developments in the childcare market in Switzerland, Germany and Austria. New figures from Switzerland and Austria show that more daycare places don't automatically mean families can actually use them. At the same time, falling birth rates in parts of Germany are already leading to daycare closures and changed investment plans.
The three most important findings this week:
Switzerland: In St. Gallen, childcare usage remains low despite an expanded supply of places. High costs are a major barrier to access.
Austria: Under-3 childcare continues to grow, but many offerings are only partially compatible with full-time employment.
Germany: Regional overcapacity coincides with persistent shortages of places elsewhere. At the same time, early education and inclusion are gaining political importance.
1. Switzerland: More daycare places, but costs remain high
The new childcare monitoring report from the canton of St. Gallen shows a clear gap between supply and usage.
Since 2021, the supply of childcare for families and school-age children has grown by a total of 35%. Yet the preschool childcare rate stands at just 15% – compared to 39% across Switzerland on average.
Cost is a key factor: parents cover around 70% of daycare costs themselves on average. A family with a medium income and two children, each cared for two days a week, spends 14–19% of their net income on this, depending on their municipality.
From August 2028, a cantonwide uniform minimum subsidy is meant to ease the burden on families. The corresponding law has been passed, and the implementing ordinance is still under consultation until 15 November 2026.
Context: A growing supply doesn't guarantee higher usage. For daycare providers, affordability, local demand and occupancy are becoming increasingly interlinked factors. Better digital visibility for daycares can help make families aware of available childcare options.
Source: Canton of St. Gallen, 5 October 2026
2. Austria: Under-3 childcare is growing – with major regional differences
According to the daycare centre statistics published by Statistik Austria on 8 October, 35.8% of children under three are now cared for institutionally. Ten years earlier, this figure was 25.4%.
The differences between the federal states remain significant: Vienna reaches a rate of 46.1%, Upper Austria 26.3% and Styria 24.0%.
For three- to five-year-olds, the nationwide childcare rate is now 94.5%.
Context: Particularly in the under-3 segment, supply and usage have expanded significantly over the long term. However, future planning needs to take into account regional birth numbers, parents' preferences and available capacity. A low childcare rate alone doesn't prove a shortage of places.
Source: Statistik Austria, Daycare Centre Statistics 2025/26
3. Austria: Only around 60% attend facilities compatible with full-time work
Not every daycare place allows parents to work full-time.
According to the new figures, 59.6% of institutionally cared-for children up to age five attend what's known as a VIF-compliant facility. This meets defined requirements for opening hours and holiday coverage.
For children under three, there are big differences: in Vienna, 88.5% of cared-for children attend such a facility, compared to just 27.0% in Upper Austria.
On top of this come varying closure periods. Austrian childcare facilities are closed for an average of 18.3 days per year.
Context: The number of childcare places alone isn't enough to measure work-family balance. What also matters is whether opening hours and holiday arrangements fit families' working lives. With the Awina Pass for employers, Awina is developing a solution to help companies support their employees with childcare.
Source: Statistik Austria, Monitoring Report 2025/26
4. Germany: Falling birth rates are reshaping the daycare landscape
Demographic change is increasingly affecting municipal daycare planning.
According to reports from Hessischer Rundfunk, in March 2026 almost 4,900 fewer children were cared for in daycares in Hesse than a year earlier. Some rural municipalities are already closing groups or entire facilities.
At the same time, the statewide shortfall is still estimated at around 28,000 places.
In Rhineland-Palatinate too, some municipalities are reconsidering planned new daycare buildings and extensions due to declining birth numbers. These are local developments, not a statewide building freeze.
Context: Overcapacity and shortages of places can occur at the same time. For providers and municipalities, small-scale planning is becoming more important: what matters is where which childcare services are actually needed.
Sources: Hessischer Rundfunk and SWR, October 2026
5. Germany: Broad support for more binding standards in early education
The ifo Education Barometer 2026 shows strong support for more binding requirements in early childhood education.
89% of adults surveyed support mandatory language tests at the age of four and a half. 79% favour nationwide uniform binding educational goals, and 72% support a mandatory preschool year.
At the same time, almost a quarter of parents surveyed report major difficulties finding a daycare place.
Important: These results reflect the opinions of those surveyed. They are not enacted legal measures.
Context: Expectations of daycares go beyond childcare itself. Language support, educational quality and staff qualifications are likely to remain important topics in the education policy debate.
Source: ifo Education Barometer, 6 October 2026
6. Germany: Reform aims to strengthen inclusive childcare
On 8 October, the German Bundestag debated the government's draft structural reform of child and youth welfare services in its first reading.
The draft aims to better coordinate support services for children and young people with disabilities. This includes educational assistance in daycares and schools, as well as closer cooperation with youth welfare offices.
The draft law has been referred to committees and has not yet been passed.
Context: If implemented, this could change how inclusive support is organised and how childcare facilities, schools and youth welfare offices work together. For daycare providers, responsibilities, staffing needs and qualifications would be especially relevant.
Source: German Bundestag, 8 October 2026
DACH Childcare Monitor: Availability alone is no longer enough
These developments point to a shared challenge: it's not just the number of childcare places that determines how well a childcare system works.
Four factors are becoming more important:
Capacity: Which places are actually available?
Demand: Where, and to what extent, do families need childcare?
Affordability: Can families afford the available options?
Compatibility: Do childcare hours fit with work and family life?
St. Gallen highlights the importance of financial barriers to access. Austria illustrates the role of opening and childcare hours. And Germany shows how differently supply and demand can develop from region to region.
For daycare managers, providers and public planning bodies, this means that the future of childcare depends not only on further expansion, but equally on how well existing services can be used and adapted to actual needs.
Numbers of the week
15%: Preschool childcare rate in St. Gallen
Approx. 70%: Parents' share of daycare costs in St. Gallen
35.8%: Under-3 childcare rate in Austria
59.6%: Share of cared-for children up to five years in VIF-compliant facilities in Austria
89%: Support for mandatory early language tests in Germany
Sources: Canton of St. Gallen, Statistik Austria, ifo Institute. These figures relate to different regions, age groups and survey sizes, and are therefore not directly comparable.
The Awina DACH Childcare Monitor regularly summarises the most important developments in childcare, early education and family policy in Germany, Austria and Switzerland – with figures, sources and context for the industry.