Early childhood education leaders are warning an oversupply of early childhood centres is causing job losses and will lead to closures.
The number of licensed early childhood centres has been rising steadily for the past decade and now centre managers in some areas, particularly parts of Auckland, say there are signs of saturation.
They say some centres are laying off staff because they do not have enough children enrolled and they expect some will have to close.
The Early Childhood Council says a recent survey found more than 70% of its members have empty spaces in their centres.
It says the Ministry of Education should have restrictions in place on where early childhood services can set up.