if you're a childcare manager or owner you may not be paying attention to the economy and what's happening out there but you should the Federal Reserve is about to lower their rate soon and here's what it means for child care businesses when fed is lowering the rate uh what happens is the unemployment is typically spiking one of the reasons they do that is to lower that unemployment but if you look at the chart here 11 out of the 15 times they did that without fail the unemployment went up the unemployment is already at 21 % uh as they lower the rate it may go higher to 30 40 50% now here is what it means to you if people are losing their jobs that means less and less people will enroll into child care so you may have less customers if you want to fix that or avoid that from happening there's one thing you should do right now which is making sure you're running at your maximum capacity most daycares are running at about 70 to 80% capacity thank you for watching subscribe to learn more