MassWorks - The Unemployment Rate: Is The Data Correct?

The Unemployment Rate: Is The Data Correct?

A great deal of attention has been paid to the recent announcement, that the US Department of Labor will now be tracking the unemployment rate for people with disabilities on a monthly basis. The initial release of this information indicated that in January 2009, the unemployment rate for persons with a disability was 13.2%, compared to 8.3% for persons without a disability. This data had a lot of people scratching their heads, as it has been generally accepted that about 70% to 80% of adults with disabilities are not working. The reality is that both of these statements are basically true, and they offer a great lesson in understanding what data is really saying. Here’s the deal: the unemployment rate is based only on individuals currently in the workforce – i.e., those people either currently employed or actively looking for work. Therefore, the unemployment rate is only looking at a subset of the entire population – and in the case of people with disabilities it’s a pretty small subset, as only 23% of people with disabilities are considered to be “in the workforce” as compared to 71% of people without disabilities. (Following so far?). While a 13.2% unemployment rate is nothing to be thrilled about, the real issue is that 77% of people with disabilities are not even participating in the workforce, compared to 29% of people who don't have disabilities. This new data reinforce the importance of not saying “the unemployment rate for people with disabilities is 70%” (which I often hear) when what we are really talking about is workforce participation. It also speaks to what our real core issue is as a field – getting more people with disabilities into the workforce.

While it is great that the Department of Labor is now tracking the unemployment rate for people with disabilities, there is a potential concern. Is this data, and possible misinterpretation of it, going to do harm to the cause of employment of people with disabilities? Are policymakers, legislators, etc., going to see this new monthly data, and come to the conclusion that employment of people with disabilities is not nearly the major societal issue that they assumed it was? If you have thoughts on this, feel free to share them.

Comments

Employment Consultant/ Vocational Opport
Written by George V. Nostrand on 2009-02-27 10:07:13

Hi David - This is an indirect answer, but the info. may be helpful in looking at your issue.

We have always found that there is a wide discrepency between DOL data and our data not mention other sources. There are a couple of simple reasons why some reporting is skewed, and of course more complicated ones. My understanding is that DOLs #s come directly from employer payroll information within the state. This does not account for the self-employed or people working in other states, for example. As you menioned in your opening comments, they also look at recently employed people when determining the unemployment rate.

Technically speaking, people on disability are not employable - at least at a level that allows for SGA earnings...I think what we need to do is point out that these statistics are not relevant to our population and be prepared to explain why...

Thanks, George

Program Coordinator
Written by Lora Brugnaro on 2009-02-27 06:55:04

Well said David- very clear, thank you, only I would use stronger language in criticising this piece of data analysis. I think in our current economic climate it is irrisponsible and reprehensible to publish a report that can so easly be misused. Not to mention that the government department who released it has a mandate to promote employment of pwd and spent years focusing on folks wanting to enter the workforce. How do they account for this major shift in thinking? I said years ago that there would be a shift in focus on employment of veterans but I didn anticipate that it would shut everybody else out. I bring up veterans because I imagine they make up a sizeable portion of the 13.% that is referred to in this article. Does anyone one know who this 13% is that the Federal government has decided to focus on?

Cause for concern -
Written by Patty Ghiossi on 2009-02-26 17:56:43

David -
The unemployment data has circled the block down here - and truly caused a lot of confusion. I am afraid that the unemployment stats will be confused with Participation stats... so we must be careful to educate those around us with the distinction.

Empire State APSE Co-President / Directo
Written by Leslie R. Addison on 2009-02-26 16:45:18

Hi Dave - I am very concerned. I fear that there is a HIGH probability for misinterpretation of data by those in control of funding and community members in general. What IS the plan for using this data on the Federal level? How will this trickle down to local One Stops and related service centers? How will potential employers view our advocacy when this publicized unemployment rate is apparently
ot that bad, according to their personal interpretation?

We, as concerned advocates, family members, and providers need to be vigilant in sharing information, challenging incorrect assertions, and be PRO-ACTIVE in alerting our funding partners and colleagues on what this data really means. We need to talk about this topic, share related information and remain focused on getting people into workforce. Thanks, Dave, for putting this topic out there!