Summary
When comparing employment outcomes for persons with and without disabilities, the unemployment rate is often the first statistic cited. But does it tell the full story? This month, we explore why focusing on employment rates (and those outside the labour force) provides a more accurate picture of the barriers adults with disabilities face in accessing work.
It is easy to quote statistics, but it is also easy to quote them badly. One must always be careful to interpret indicators and statistics correctly, as well as to choose the most appropriate ones. If not, you will not get the most appropriate, or even true, picture of reality.
In this monthly column, we will highlight a statistic or indicator, briefly discussing its strengths and limitations, and how it should be interpreted.
The statistic for this month is the unemployment rate. People often compare the unemployment rate of persons with and without disabilities when talking about the barriers people with disabilities experience accessing employment.
For example, in Vietnam, the unemployment rate for persons without disabilities in 2022 was estimated at 4.3%, but for people with disabilities at 13.9%. So, yes, we see a big gap, but is this the right statistic to focus on?
Well, unemployment is defined as people who are able and willing to work and are actively looking for employment but have not found it. Hence, people who are not looking for work are not included in calculating unemployment rates. In many circumstances, adults with disabilities may not be looking for work because there are so many barriers they feel it is not worthwhile! Those people, who may want to work but don’t even see the point of looking, are not considered unemployed – they are called “discouraged workers” and are counted among those outside the labour force. Persons are only considered to be in the labour force if they are working or looking for work.
So, gaps in unemployment by disability do not present a complete picture: many adults with disabilities face barriers to working that are not counted in unemployment rates.
So what would be a more appropriate indicator? We might be better off looking at the employment rate.
The employment rate is defined as the percentage of the working-age population that works for pay at least one hour a week.
By focusing on employment, we know how many adults access employment, and as a result, we also know how many do not;, that is, how many are either unemployed or outside the labour force.
For instance, we see that according to the 2022 Labor Force Survey in Vietnam, the employment rate of adults without disabilities was 76.3%, but for adults with disabilities it was 23.5%. This means that 76.5 percent of working age adults with disabilities do not work, compared to only 23.7 of working age adults without disabilities.
The graph below shows the distribution of labor force status across the three measures: employment, unemployment, and out of the labor force. If one only looked at unemployment – the orange part – one would miss the big difference between people with and without disabilities – that many of them are completely out of the labor market.
This reflects the reality that there is probably a much larger share of adults with disabilities who are likely discouraged workers rather than unemployed workers. Thus, inclusive labor market policies should not only try to help adults with disabilities who are looking for jobs to find jobs, but also, support adults with disabilities who would like to work, but face too many barriers to even try. Looking at the unemployment rate instead of the employment rates and those “not working” could be understating the barriers to employment faced by persons with disabilities, and lead to designing policies that do not fully address these barriers.
Now, let’s be clear: this is not a study. Simply knowing unemployment or employment rates still does not tell us enough about the barriers people with disabilities face to working. There is much more that should be analyzed to figure out what really is going on. However, knowing these statistics still gives us a glimpse into the realities that people with disabilities face. Learning about each statistic is like opening a window. Some windows are bigger, and some are smaller. Some face north, while others face south. Choosing which window to open, or rather, which statistic or indicator to use, can affect what we see about the barriers people with disabilities face, and what we choose to do about them.