A States report has found issues with the pre-school sector in Guernsey that damage both it, and the wider island economy.
Economic Development has published an independent report into the Early Childhood Education and Care sector.
24 pre-schools and nurseries, and additional input from registered childminders, found 25 potential areas for intervention and improvement.
These include improving provision for the under-2s, aligning staffing ratios with UK regulations and expanding the flat-fee funding model into holidays and matching inflation.
ED Committee president Neil Inder says not addressing the issues will impact the wider economy.
“The Early Years Sector is not only critical for the development of our community’s young people but also is a powerful economic enabler.
"The recommendations will allow us to better support this part of our economy, but I am keen that both the Committees for Education, Sport & Culture, and Health & Social Care, look through this report and act on the actions that sit within their mandates.”
Review Lead for the Committee for Economic Development deputy Sasha Kazantseva-Miller says:
"Accessible and affordable childcare is vital to a thriving economy, as it enables parents to work and contribute as much as they need or choose to.
"It’s so expensive to have children in Guernsey right now. There is no wonder that the birth rate is plummeting.
"We really have to look at it as a priority to ensure we support parents with childcare and to ensure that they’re not making those difficult decisions not to have children anymore.
"We are committed to working closely with the Committees for Education, Sport & Culture, and Health and Social Care to drive these recommendations forward."
A spokesperson for the sector says they are committed to providing high quality care and education:
"Working together with the States of Guernsey and deputies is an essential part of that commitment and the review highlights just how important the childcare industry is to the island."
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