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Economic Inactivity Literature Review
March 2014
Professor Ronald McQuaid
University of [email protected]
Presentation as part of: “Enabling Success” Consultation on a New Strategic Framework to Tackle Economic Inactivity in Northern Ireland – Driving Social Change Through Economic Participation - Department for Employment and Learning Northern Ireland
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1. BACKGROUND
Economic inactivity related to:
• family commitments, specifically lone parents
• work-limiting health conditions or disabilities
Primarily based on academic findings using desk based research and some statistical analysis
KEY FINDINGS - Family Commitments
- Disabilities- Conclusions
Some pathways into inactivity
Family responsibility:
• Heterogeneity
• Young vs older separation/divorce lone parents
• Likelihood of remaining economically ‘inactive’ rises with number of children, disability of child etc.
Table 2.2: Disability, Dependency and Economic activity in 2012 (LFS) Married/co-habiting dependent children Lone parent dependent children No dependents
Disability Total Disability Total Disability Total
Disabled Not disabled Disabled Not disabled Disabled Not disabled
Great Britain In employment 60.6% 77.0% 74.7% 37.5% 53.7% 50.1% 49.8% 81.1% 73.8%
ILO unemployed 5.6% 5.3% 5.4% 12.0% 13.5% 13.2% 7.1% 6.5% 6.6%
Inactive 33.8% 17.6% 19.9% 50.5% 32.8% 36.7% 43.1% 12.4% 19.6%
Northern Ireland In employment 53.8% 77.1% 74.3% 23.2% 46.2% 42.0% 34.6% 81.9% 70.9%
ILO unemployed 6.4% 2.6% 3.0% 7.3% 7.2% 7.2% 4.5% 7.2% 6.5%
Inactive 39.8% 20.4% 22.7% 69.4% 46.6% 50.8% 60.9% 11.0% 22.6%
Lone parents and caring
Inactivity rates of lone parents much greater in NI than GB. Married/co-habiting and no dependents not greatly different in NI and GB
Mothers returning to work
More likely to return to work if:• employed during pregnancy • working in the public sector • working for a larger employer • (longer) duration of job pre-birth, generous maternity pay, particularly occupational provision in addition to the statutory entitlement
• partnered rather than single • highly qualified
Mothers returning to work
Less likely if:• from certain ethnic backgrounds• lone mothers• partner works long hours
Family responsibilities – policy lessons
• Holistic and tailored support • Partnership working • Good advisers • Training and qualifications • Making work pay
1. BACKGROUND TO THE RESEARCH
2. KEY FINDINGS - Family Commitments- Disabilities- Conclusions
Some pathways into inactivity
Disability:
• disability from childhood
• disability during working life
Table 2.2: Disability, Dependency and Economic activity in 2012 (LFS) Married/co-habiting dependent children Lone parent dependent children No dependents
Disability Total Disability Total Disability Total
Disabled Not disabled Disabled Not disabled Disabled Not disabled
Great Britain In employment 60.6% 77.0% 74.7% 37.5% 53.7% 50.1% 49.8% 81.1% 73.8%
ILO unemployed 5.6% 5.3% 5.4% 12.0% 13.5% 13.2% 7.1% 6.5% 6.6%
Inactive 33.8% 17.6% 19.9% 50.5% 32.8% 36.7% 43.1% 12.4% 19.6%
Northern Ireland In employment 53.8% 77.1% 74.3% 23.2% 46.2% 42.0% 34.6% 81.9% 70.9%
ILO unemployed 6.4% 2.6% 3.0% 7.3% 7.2% 7.2% 4.5% 7.2% 6.5%
Inactive 39.8% 20.4% 22.7% 69.4% 46.6% 50.8% 60.9% 11.0% 22.6%
Disability and caring
Inactivity rates of disabled greater in NI than GB, especially for lone parents and those with no dependents
Disabilities
• The Disability Discrimination Act (DDA) defines a person with disabilities as someone who has a physical or mental impairment that has a substantial and long-term adverse effect on the ability to carry out normal day-to-day activities
• Those with DDA and a work limiting disability are most likely to be inactive
Disability and employment issues
• Entering ‘main stream employment’: – employability (skills, qualifications etc); – accessible work (physical, work organisation); – attitudes of employers (and co-workers).
• Type of job (part-time, low pay, low skilled)• Types and severity of disabilities (e.g. diabetes vs mental)
• Sheltered workplaces
People with disabilities – policy lessons
• a focus on employers and workplaces• supporting the whole range of jobs • employability • awareness about programmes • integrated approach
1. BACKGROUND TO THE RESEARCH
2. KEY FINDINGS - Contextual analysis- Family Commitments- Disabilities- Conclusions
Conclusions
• Reducing inactivity is important for NI
• Alternatives to paid employment for some
• Policies may appear to be gender, disability, family-blind etc. but in reality may not be
• Not just an ‘add on’ to existing policies
Thank you for listening
Report is available at:
McQuaid, R., Shapira, M., Graham, H. and Raeside, R. (2013) Economic Inactivity Research Project (those with family
commitments and the long-term sick and disabled) - Literature Review (Project-11040), Department for Employment and
Learning, Northern Ireland
http://www.delni.gov.uk/economic-inactivity-literature-review-project
Figure 2.10b: Employment Rates by Disability in NI by gender 2006-2012
