A new sign of the labor crunch: $20 an hour for babysitting

Workers across many U.S. industries are enjoying the best pay hikes they've had in years thanks to a labor shortage caused by the COVID-19 pandemic. And one traditionally underpaid occupation that's getting a major pay bump: babysitting. 

Average pay for a babysitter jumped 11% last year to $20.57 an hour for caring for one child, according to a new analysis from UrbanSitter, which connects babysitters with families looking for help. That jump means babysitting' wages are outpacing inflation, which rose 7% in December compared with the prior year. 

That's great news for babysitters, but it adds up to higher costs for families already struggling with inflation for other goods and services.