Child Care in State Economies (2024) is a three-part series examining the current status of the paid child care industry in the U.S. The reports provide policymakers and other stakeholders with a detailed update on the status of the paid child care industry following unprecedented disruption during the recent COVID-19 public health pandemic. This first report examines the residual effects of the COVID-19 pandemic on the demand for paid child care services. U.S. families pulled back significantly in their use of paid care at the onset of the pandemic in early 2020, with a loss of nearly one in five children in paid care. Record layoffs quickly translated into a sharply reduced need for paid child care as uncertainty over public health surged and many workers stayed home under sheltering restrictions. Families have since increased their use of paid care, but the number of children in paid care remained nearly 10% below pre-pandemic levels through 2022. Most important, the rebound in paid child care usage remained far weaker than the overall recovery in both the labor force and the broader economy. The concern for policymakers is that the key economic and demographic factors that traditionally underlie paid child care usage do not adequately explain the weak recovery in usage. This comprehensive analysis aims to provide insights into these trends and offer guidance toward policy efforts to sustain the paid child care sector in the post-pandemic era.