Economic Inactivity Literature Review

March 2014

Professor Ronald McQuaid University of Stirling

[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

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.

Lone parents and caring

Table 2.2: Disability, Dependency and Economic activity in 2012 (LFS)

Married/co-habiting dependent children Lone parent dependent children Disability Total Disability Total Disabled Not disabled Disabled Not disabled

Great Britain

In employment 60.6% 77.0% 74.7% 37.5% 53.7% 50.1%

Northern Ireland

ILO unemployed Inactive In employment ILO unemployed Inactive 5.6% 33.8% 53.8% 6.4% 39.8% 5.3% 17.6% 77.1% 2.6% 20.4% 5.4% 19.9% 74.3% 3.0% 22.7% 12.0% 50.5% 23.2% 7.3% 69.4% 13.5% 32.8% 46.2% 7.2% 46.6% 13.2% 36.7% 42.0% 7.2% 50.8% No dependents Disability Disabled Not disabled 49.8% 81.1% 7.1% 43.1% 34.6% 4.5% 60.9% 6.5% 12.4% 81.9% 7.2% 11.0% Total 73.8% 6.6% 19.6% 70.9% 6.5% 22.6% 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

Disability and caring

Table 2.2: Disability, Dependency and Economic activity in 2012 (LFS)

Married/co-habiting dependent children Lone parent dependent children Disability Total Disability Total Disabled Not disabled Disabled Not disabled

Great Britain

In employment 60.6% 77.0% 74.7% 37.5% 53.7% 50.1%

Northern Ireland

ILO unemployed Inactive In employment ILO unemployed Inactive 5.6% 33.8% 53.8% 6.4% 39.8% 5.3% 17.6% 77.1% 2.6% 20.4% 5.4% 19.9% 74.3% 3.0% 22.7% 12.0% 50.5% 23.2% 7.3% 69.4% 13.5% 32.8% 46.2% 7.2% 46.6% 13.2% 36.7% 42.0% 7.2% 50.8% No dependents Disability Disabled Not disabled 49.8% 81.1% 7.1% 43.1% 34.6% 4.5% 60.9% 6.5% 12.4% 81.9% 7.2% 11.0% Total 73.8% 6.6% 19.6% 70.9% 6.5% 22.6% 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