The childcare market is changing. In Switzerland, new cantonal funding models and the end of current federal support are in the spotlight. Germany is seeing a decline in the number of daycares for the first time since records began. At the same time, new studies show how the job market for early childhood professionals is shifting. Austria, meanwhile, shows that even available funding isn't automatically used in full.
The latest Awina DACH childcare monitor highlights the developments most relevant to daycare managers, providers and professionals.
The key points at a glance
Switzerland: Basel-Landschaft plans to cover a quarter of childcare costs, regardless of income, starting in August 2027. At the same time, the current federal funding programme ends in 2026.
Germany: The number of daycares is falling for the first time. New studies also show changes in staff availability and challenges in qualifying new employees.
Austria: Around 67.9 million euros in federal funding for expanding childcare and language support went unused in the 2024/25 kindergarten year.
Switzerland – focus on German-speaking Switzerland
1. Basel-Landschaft plans 25% cantonal contribution to childcare costs
The canton of Basel-Landschaft wants to provide families with more relief when it comes to childcare costs.
Under the revised law on supplementary family childcare passed in June 2026, the canton plans to cover 25% of childcare costs in future, regardless of income. The existing income-based subsidies from municipalities will continue alongside this.
The change is set to take effect on 1 August 2027. The implementation decisions and financial requirements needed for this have not yet been finalised.
Why does this matter?
For families, the amount they pay out of pocket for childcare could change significantly. For daycare providers, new conditions arise around funding and administrative processes. This development also shows how differently cantons approach financial relief for families.
To see how cantonal support affects families in practice, check out our guide on childcare vouchers in the canton of Bern.
Source: Canton of Basel-Landschaft, 24 September 2026
2. Swiss federal funding ends: applications still possible until 30 December
The federal government's current impulse programme to promote supplementary family childcare ends at the close of 2026.
The Federal Social Insurance Office (BSV) confirms that applications can be submitted until 30 December 2026. Under certain conditions, funding is available for things like additional childcare places and projects aimed at better aligning services with parents' needs.
The successor law, UKibeG, was passed by parliament in December 2025. It provides for a new childcare allowance and financial support for cantons. A definitive date for it to take effect has not yet been set.
Why does this matter?
For daycare providers with eligible projects, the remaining deadline is important. At the same time, when it comes to longer-term financial planning, it's worth noting that the new federal funding scheme has not yet been put into operation.
Source: Federal Social Insurance Office
3. Zurich: fewer children and daycares, but public investment remains high
The City of Zurich's 2025 childcare report reveals initial shifts in the city's childcare market.
The number of daycares fell from 330 to 321, while the number of preschool-age children decreased from 21,177 to 20,846.
The number of childcare places on offer also dipped slightly, from 11,926 to 11,772. At the same time, public spending on preschool childcare remained at the previous year's level of CHF 96.5 million.
In addition, the city invested around CHF 2.4 million in quality development measures in 2025.
Why does this matter?
These figures show that even a large urban childcare market can change without a corresponding drop in public investment. For daycare providers, occupancy rates, regional demand and quality development are becoming increasingly important. However, the figures alone don't tell us whether all families are finding a suitable place.
Source: City of Zurich, 2025 Childcare Report, published 20 May 2026
Germany
4. Number of daycares falls for the first time – declining birth rate reshapes the market
New figures from the Federal Statistical Office point to a turning point in German childcare.
As of 1 March 2026, around 756,700 children under the age of three were in care. That's 5.6% fewer than the previous year.
For the first time since the nationwide statistics began in 2006, the number of daycare facilities also fell – from around 61,080 to about 61,000.
A complementary analysis by the German Youth Institute (DJI) shows that around 17% fewer children were born in western Germany in 2025 than in 2021. Even so, demand for childcare remains unmet in some regions.
Why does this matter?
The demographic decline is increasingly reshaping local needs-based planning. While some facilities are caring for fewer children, suitable places are still lacking elsewhere. For daycare providers, local birth numbers, occupancy rates, and the long-term outlook for individual locations are becoming more important.
Source: Federal Statistical Office, 29 September 2026
Source: German Youth Institute, 15 October 2026
5. Professionals: more applicants available, but qualification issues persist
The new DJI analysis also reveals shifts in the job market.
In 2025, there were 1.1 registered unemployed early childhood educators for every registered open position, compared to 0.8 in 2024. This points to some easing in parts of the job market, but doesn't mean the shortage of skilled staff is over.
A study published at the same time by the Bertelsmann Foundation adds further detail: of around 4,800 daycare managers surveyed, 56% reported having to compromise on new employees' specialist knowledge. 23% said positions had been advertised below the qualification level originally required.
The voluntary Bertelsmann survey is not representative of all daycares in Germany.
For daycare providers looking to attract new staff, Awina for daycares offers ways to showcase your facility and open positions.
Why does this matter?
The number of available applicants says little about whether a position can be filled with the right expertise. For daycare providers, checking qualifications, providing structured onboarding and offering further training remain key to maintaining good childcare quality.
Source: DJI, 15 October 2026
Source: Bertelsmann Foundation, 15 October 2026
6. New daycare quality law: federal states call for better funding
On 16 October, the Bundesrat issued its position on the planned Start Opportunities and Quality Development Act.
The government's draft provides for a total of around 9.25 billion euros in federal funding for the 2027–2034 period, aimed at strengthening early childhood education and quality development, among other things.
However, the federal states are critical of the long-term funding structure and are calling for more flexibility on certain requirements, such as language assessments and specialist advisory services.
The law is still going through the parliamentary process.
Why does this matter?
Higher quality requirements also need to be achievable in terms of staffing and funding. For daycare providers, what matters most is which additional requirements will apply and how their funding will be secured in the long run.
Source: Bundesrat session of 16 October 2026
Austria
7. Millions in childcare funding left unused
In Austria, a parliamentary response reveals that significant federal funds for expanding childcare and language support went unused in the 2024/25 kindergarten year.
According to figures published in September, around 191.5 million euros were available. Of that, around 123.7 million euros were drawn. Around 67.9 million euros in this funding category went unused.
The gap was particularly striking in Styria, where around 30 million euros of allocated funds went unclaimed.
It's not clear from this whether, or to what extent, the unused funds will ultimately be forfeited.
Why does this matter?
Available public funding doesn't automatically translate into additional childcare places. The implementation of funding programmes also depends on administrative procedures, project planning and the specific funding conditions involved. Which factors were decisive in individual cases would need separate investigation. For providers and public bodies, this development shows that how funding is actually used matters just as much as the size of the budget.
Source: ORF, 6 September 2026, based on a parliamentary response
DACH trend of the week: childcare enters a new planning phase
Current developments make clear that the challenges facing the three countries are shifting in different directions.
In Switzerland, new cantonal funding models are emerging as current federal support comes to an end.
In Germany, falling birth numbers are changing demand and increasingly affecting the job market for skilled professionals. At the same time, expectations around educational quality are rising.
In Austria, the incomplete use of available funding shows that financing and actual implementation are two separate challenges.
As a result, three factors are becoming more important for daycare managers and providers: reliable funding, forward-looking staff planning, and making good use of existing capacity to match actual needs.
Expanding childcare provision remains important. But increasingly, what matters is how well services are funded, organised and adapted to regional needs.
One way to reach families directly is through the Awina Premium profile for daycares. It lets facilities showcase their offerings and unique strengths.
Numbers of the week
The Awina DACH childcare monitor regularly reports on relevant developments in Switzerland, Germany and Austria, featuring current figures, official sources and context for daycare managers, providers and professionals.
You can find more developments in our previous edition of the DACH childcare monitor.