Supported Employment in Recession: What can we learn from past events?

1. Supported Employment in Recession: What can we learn from past events? Dr. Stephen Beyer Cardiff University

2. Recessions • Definition of recession • In the US a recession is defined as "a significant decline in economic activity spread across the economy lasting more than a few months, normally visible in real gross domestic product (GDP), real income, employment, industrial production, and wholesale-retail sales. • In the UK recession is broadly defined as two successive quarters of negative GDP growth

3. Recessions in the US

4. Recessions in the UK

5. Unemployment Rate- US Recessions US

6. Unemployment Rates- UK Recessions UK

7. Unemployment Rates

8. Supported employment growth-US

9. Total Number of People Served by State IDD Agencies and Estimated Number Served in Integrated Employment

10. Total Number of People Served by State IDD Agencies and Estimated Number Served in Integrated Employment 20% 23.7% 12%

11. US Growth: 1988-1995 Federal or central government investment stimulates change Political liberalism at State level linked to State fiscal commitment toSE services Anti-discrimination legislation at State level Extended leverage of State level funding by Federal funding Impact of higher economic growth rates (rather than overall wealth) Integrated rather than “contracted out” specialised services (in mental health) A raft of employer mediated initiatives to support job maintenance and retention, and government mediated policies, laws, incentives and grants McGaughey & Mank (1999)

12. US Growth: 1996- Intellectual Disability employment stalled due to stand-off with sheltered employment Growth in MH through Individual Placement with Support (IPS) Sustained development of good practice evidence through research but significant differences in delivery across States

13. Growth in UK Supported Employment Agencies 1987-1995 1995 Agencies- 201 Est. Employees- 5084 LD- 90.3% MI- 6.3%

14. UK Growth: 1988-1995 • Local authority subsidy increases under development projects such as Ordinary Life and Ordinary Working Life • LD reform strategies, such as All-Wales Strategy (1983-1993) • EU funded pilot programmes • Horizon • Leonardo • European Social Fund • ADAPT • Availability of Training in Systematic Instruction and other training courses Melling, Beyer & Kilsby (2012)

15. UK SE funding Wistow and Schneider (2007)

16. Growth in UK Supported Employment post-1995 Intellectual Disability employment stalled despite Public Sector Agreement (PSA) 16- 6.4%-7.1% General employment growth for disabled people improving but hard to place who would benefit from SE (ID, MH, Autism) remaining low Increase in job coaching penetration through government funded project (Work Choices-Phase III) but of low intensity and “cherry picking” of clients

17. Differences in 1990s and 2000s • 1990s- In the US and UK growth lead by: • availability of fiscal support • increases in community-based supported employment services • in the US, the availability of University technical assistance programs

18. Challenges of the “Great Recession” • Qualitatively different recession • 1990, 2001 business confidence and private sector jobs fall-out • 2007/08 Government debt crisis, failure of investment and high impact on public sector funding of services (impacting on support and jobs) • Labour market has changed • Wage differences has led to subcontracting of manufacturing capacity from developed to developing countries • Manufacturing accounts for 16% of total employment in the EU15 (down from over 21% in 1995) and 12% • Levels of employment in routine, repetitive administrative jobs have declined, replaced by ICT • Shock absorbed by reduced hours and wages, temporary contracts • Different responses to recession by UK & US governments

19. Differences in 1990s and 2000s • 2008/10- In the UK Government has: • Cut local authority expenditure that still underpins SE provision • Mixed messages on job coach funding • Workstep Work Choices “Prime Providers” (fewer skilled providers?) • Deletion of Work Preparation programmes • Increases in Access to Work • Implemented public spending cuts that are likely to result in a loss of at least 600,000 jobs in the public sector • Perhaps three quarters of a million jobs lost in the private sector, because of its reliance on work from the public sector • Bank lending is compromised which has restricted investment, growth, and job opportunities still further • Slower bounce back than previous recessions >4 years

20. Differences in 1990s and 2000s • 2007/08- In the US Government has: • Increased Education financing for IDD career development and employment • Increased some investment in Federal employment strategies and some system change not seen since late 1990s • Medicaid still available for employment (if poor take-up) • Continued to pursue VR outcome based funding • Competing investment in Sheltered Employment and Day Services still unresolved

21. SE processes impacting in recession • Intensive vocational profiling with job matching leads to better job match and employer outcomes • Job coaching provides on-going problem solving and help with retention of trusted disabled employees Coutts and Riddell (2012), • “Added value” service from SE increase competitiveness of disadvantaged people in a tight labour market • Disability awareness training • Mentoring programmes • Refining task processes O’Bryan- Project SEARCH 2012 (Personal communication)

22. Job Coach support Supervisors need to support job coaches/job developers to believe job finding is possible Helping teams to pursue relationship marketing approaches with employers Using team meetings and supervision to maintain confidence and to overcome negative beliefs about labour market Beyer (2012)

23. Employer relationships • Hidden jobs • Heightened productivity of (stressed) staff • Promotion from within the company • People known to key staff • Referral from a co-worker • Previous people contacting managers • HR Department – CVs on file • Commissioned recruitment agencies CVs on file • Market said to account for 80% of jobs, and a greatest variety of jobs • Fewer new jobs in recession but this market remains in place • Requires more intensive and on-going relationships with employers and staff • Job carving can assist in under-employment • Caveat is impact of equal opportunity policies

24. Employer relationships • Transitional jobs • Retirement • Maternity/paternity leave • Temporary workers for high demand periods • Internships • Structured approach to job finding • employer engagement • Project SEARCH model of education/SE/employer partnership • Have been used to find a way into companies with a view to more permanent jobs

25. Employer relationships • In a recession fewer jobs are publicly advertised • Pressure on HR by large volume responses • Advertising costs • Use of trusted conduits • More people know of unemployed candidates • More emphasis on hidden or transitional job opportunities • As growth returns, initial job opportunities will be in extending existing staff hours and wages • Requires greater direct company networking and contacts

26. Re-recruitment/training is costly

27. Job retention over time- Single Parents

28. Well-matched supported employees can stay in jobs longer 6 agencies , 245 workers, from Beyer (2012)

29. Employers benefits of SE • Reduced employer recruitment costs • Reduced risk in recruitment • SE a trusted intermediary who can match and support • Public sector have agreed 1st option on jobs to some commissioned SE agencies • In competition with more qualified people, added value to company helps level the playing field for supported employees • Supervisor training/mentoring development • Disability awareness and Diversity policy assistance • Cost savings through streamlining (Lean) • Increased coworker morale and productivity through mixed teams • Workers who can accommodate fewer hours become more useful to employers where they have reduced staff hours in recession

30. Family preferences • Individualised approach by supported employment offers reassurance to consumers in making a risky move into employment • Are assisted by longer term relationship with SE agency, ideally through transition tasters • Need a credible response to natural concerns for people with ID • Exploitation • Bullying • Danger at work or of abuse • Individual job match to job seeker motivation and skills • Accurate welfare benefit advice and assistance with Benefit Agency including negotiation of Tax Credit and in-work welfare benefits • Continued involvement/oversight of person at work Beyer et al. (2008)

31. Job seeker preferences • People with ID are more likely to enter paid employment when supported employment: • Finds jobs people are motivated to do • Provides good training including help to be socially included • Facilitates access to natural as well as formal supports • Provides easy access to SE support while person in a job • Facilitates career progression Schneider & Wistow 2003

32. “Great Recession” Opportunities There has been significant employment growth in lower-skilled service jobs in a number of EU countries and in the EU as a whole One possible explanation is that growing wage and income inequality – caused partly by shifting employment favouring higher-skilled workers in recession – can generating demand for lower-level service sector jobs Some low-skilled service sector jobs that can grow due to low potential for mechanisation(e.g. personal care assistant, hairdresser, waiters) Increased demand (and higher wages) at the top of the wage distribution can create excess income, permitting higher levels of discretionary spending, boosting employment in such services.

33. Unemployment Rates

34. Unemployment Rates

35. Conclusions • To be successful we require: • better supported employment technique • more intensive employer engagement • to support client choice with better job matching • an emphasis on job coaching models • Equal rights means equal rights in recession also • there is some evidence that disabled people were 3 times more likely to lose their job in the current recession • Equality means access to appropriate support mechanisms for disabled workers, with funding • In many countries this still requires a hard examination of current investment patterns across different employment models

36. References Bell, N.E. and Blanchflower, D.G. (2010) UK UNEMPLOYMENT IN THE GREAT RECESSION. NATIONAL INSTITUTE ECONOMIC REVIEW No. 214 OCTOBER Beyer, S. (2012) The Impact of Agency Organisation and Natural Support on Supported Employment Outcomes. JVR, Volume 36, Number 2, 109-119. Beyer, S. Goodere, L. and Kilsby, M. (1996) The Costs and Benefits of Supported Employment Agencies: Findings from a National Survey. Employment Service Research Series, No. 37. London: Stationery Office. Beyer, S., Kaehne, A., Grey, J., Sheppard, K. and Meek, A. (2008) What works?- Transition to employment for young people with learning disabilities. Chippenham: Shaw Trust. http://www.shaw-trust.org.uk/files/shaw_trust_summary_report.pdf Butterworth, J., Smith, F., Hall, AC., Migliore, A., Winsor, J., Domin, D. and Timmons, J. (2012) StateData: The National Report on Employment Services and Outcomes 2011. University Mass.: UCEDD. Coutts, P. and Riddell, S. (2012) Employers’ Views of Supported Employment for Disabled People in Scotland.University of Edinburgh: Centre for Research in Education Inclusion and Diversity. Gidugu, V. & Rogers, E. S. (2012). Review of Employment Services for Individuals with Intellectual and Developmental Disabilities: A Comprehensive Review of the State-of-the-Field from 1996–2011. Boston: Boston University, Sargent College, Center for Psychiatric Rehabilitation.

37. References House of Commons Committee of Public Accounts Sustainable employment: supporting people to stay in work and advance. Thirteenth Report of Session 2007–08. Lister, T., Ellis, L., Phillips, T., O'Bryan, A., Beyer, S. and Kilsby, M. (1992). Survey of supported employment services in England, Scotland and Wales. Manchester: National Development Team for People with a Learning Difficulty. Mank,D. and Grossi, T.A. (2013 ) Employment: Renewed Investments. INCLUSION AAIDD, Vol. 1, No. 1, 7–16. McGaughey, M. & Mank, D. (1999) Empirical evidence of systems change in supported employment. http://www.worksupport.com/main/downloads/article4.pdf Melling, Beyer & Kilsby (2012) Supported employment for people with learning disabilities in the UK: the last 15 years. Tizard Learning Disability Review, 16, 2, 23-32. Schneider J. and Wistow, R. (2003) Users views on supported employment and social inclusion: A qualitative study of people in work. British Journal of Learning Disabilities, 31, 166-174. Wistow, R. and Justine Schneider, J. (2007) Employment support agencies in the UK: current operation and future development needs. Health and Social Care in the Community (2007) 15 (2), 128–135. Wren-Lewis, S. (2013) Labour productivity in the recession: why are the UK and US so different? Manly Macro, Feb. http://mainlymacro.blogspot.co.uk/2013/02/labour-productivity-in-recession-why.html

38. Thank you Contacts beyer@cardiff.ac.uk http://medicine.cf.ac.uk/person/dr-stephen-richard-beyer/research