The total number of US children participating in after-school programs is on the rise.
New York, NY (PRWEB) January 18, 2015
The After-School Program Providers industry organizes youth programs that take place outside of the traditional school day. The majority of industry programs are nonprofit operations that depend on government funding, donations and tuition fees to fund their programs. “Over the past five years, the industry has struggled as disposable income and unemployment levels remained high following the recession,” according to Lucas Isakowitz. Moreover, reduced government funding and the 2013 government sequester significantly constrained industry growth during the past five years. As a result, industry revenue is anticipated to decrease at an annualized 1.2% in the five years to 2015.
Despite these harsh conditions, both the percentage and the total number of children in the United “States participating in an after-school program have been on the rise for the past five years,” says Isakowitz. According to data from the Afterschool Alliance, in 2014, about 10.2 million children (18.0%) participated in an afterschool program, up from about 8.4 million (15.0%) in 2009. This strong demand kept the industry afloat despite poor funding conditions. Moreover, there is still an enormous amount of unmet demand for industry services; according to the Afterschool Alliance, there are nearly 20.0 million children that would attend an after-school program if there were one available. In 2015, as demand for industry services remains strong and as disposable income grows, unemployment levels fall and government funding increases, industry revenue is expected to grow 3.0% to reach $21.9 billion.
During the next five years, healthier government funding and a declining unemployment rate are expected to support the After-School Program Providers industry. Moreover, increased disposable income levels will benefit industry operators, particularly after-school programs that charge tuition or membership fees. As a result of these factors, IBISWorld projects industry revenue to grow in the next five years.
For more information, visit IBISWorld’s After-School Program Providers in the US industry report page.
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IBISWorld industry Report Key Topics
This industry organizes youth programs that take place outside of the traditional school day. After-school programs can occur at various times of the day and in a variety of places, including the school building, community centers, libraries or parks. Activities include everything from sports and study groups to performing and creative arts. As many industry operators are nonprofit organizations, they are exempt from federal income tax.
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