Education Ministry figures show a dramatic fall in the number of new early childhood services being set up and a long running spike in the number going out of business.
In the 12 months to the end of June last year 109 new early learning organisations opened - one of the lowest figures in the past twenty years.
In the same period, 88 closed, continuing a run that has now shut 359 licenced services in four years.
Here's RNZ education correspondent John Gerritsen.