The high cost of childcare and difficulties in securing childcare places in Dublin is damaging companies' recruitment efforts and driving employees out of the workforce, according to the Dublin Chamber of Commerce.
In its latest Business Outlook Survey shows, nine out of ten businesses reported that childcare issues are a significant barrier to attracting and retaining staff.
A fifth of respondents said it is their biggest obstacle.
The report also highlighted measures adopted by Dublin businesses to help employees manage childcare-related challenges with nearly three quarters of respondents offering staff options to work remotely and another seven-in-ten providing flexible working arrangements.
According to Dublin Chamber, Ireland ranks the second highest in the OECD and worst in Europe when it comes to childcare costs as a share of average wages.
It is also pointed out that the cost of childcare in Dublin is higher than the national average.
The outgoing Government introduced initiatives to cut childcare costs for parents, but the Dublin Chamber is calling on the next government to do more.
"We believe that a public model of childcare should be prioritised in the next Programme for Government," said Mia Finnegan, Public Affairs Executive at Dublin Chamber.
"Moving to a public model will be critical for ensuring a steady supply of affordable, quality childcare and building a more sustainable and diverse labour market."
"The high cost of childcare is exacerbated by the simple lack of childcare places in Dublin, which has failed to meet the needs of its rapidly growing population," Ms Finnegan said.
"While recent budgets have reduced costs for many parents, Ireland's childcare system remains fragmented and unsustainable, placing immense strain on family finances and limiting workforce participation," she added.
Dublin Chamber Public Affairs Director Aebhric Mc Gibney said childcare obstacles may be cause for companies to withdraw from Dublin.
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Speaking on RTÉ's Morning Ireland, he said that while some companies offer childcare facilities or crèches, "most companies" are concerned about trying to run their own businesses.
Mr Mc Gibney said Dublin Chamber is calling for the new government to both reduce childcare costs and to provide a greater supply of childcare.
"We think the State needs to intervene to support childcare providers in retaining their staff, helping them with some of the capital costs of childcare places, and making sure that there are places where people need them," he said.
