The Federation of Childcare Providers says the sector is under huge pressure due to the lack of staff and funding available.
The group is calling on the Government to introduce measures in budget 2022 to address the growing problem.
Chairperson, Elaine Dunne, says immediate steps are needed to resolve the problems:
"In Dublin, in particular, there is an outcry for service providers. There's people closing down left, right and centre. We need to do something about this because parents need to go to work. So the only way to resolve this is, in Budget 2021, is to ensure that a lot more funding comes into our sector, so that we can keep service providers open, keep the economy going, and keep working."