About 500 Canberra families have been turned away from childcare programs this winter, due to a shortage of workers in the sector.
CEO of Communities At Work Lee Maiden said her organisation, which is the largest childcare provider in Canberra, received more than 6,000 applications, but only about 5,500 children were offered places.
She said there was a critical staff shortage in the sector, but school holiday demand compounded with outbreaks of COVID-19 and the flu had meant the number of places had to be capped.
"We have around 600 staff members in the ACT," Ms Maiden said.
"If we use every staff member and educator we have to fill these positions, it just takes one or two of them to be sick and we can't replace them.
Trickle-on effect for workplaces
Canberra Business Chamber chief executive Graham Catt said parents taking time off during school holidays, combined with the high rates of illness, had had a major impact on small businesses in particular.
"For our businesses, that translates to more parents that can't come to work," Mr Catt said.
"That's exacerbating the problems in terms of that absenteeism we're seeing every day.
Brooke McBain works in the city and has been juggling her son's care these school holidays.
She said many of her friends were in the same boat with their young children.
"I'm lucky I work part-time and that I have the ability to take time off with him," Ms McBain said.
"I can understand it's pretty challenging for parents who can't get that time off and childcare."
She said the entire pandemic had been a challenge with her son
"Juggling my husband's and my hours has been challenging but in the end everyone has been really supportive and my friends are in the same boat," she said.
More than 1,000 cases of COVID-19 are being reported in the ACT each day.