Friday 2 April 2010

Diversity & the Economic Downturn - part two

There has been some interesting research exploring the impact of the downturn upon different groups. Sources include the Department for Work and Pensions (DWP), the Equality and Human Rights Commission (EHRC), Stonewall, the Fawcett Society and Mind. Whilst we may look to previous economic downturns for an indication of the likely impact upon the various groups, the current research does provide us with a more useful indicator of where we should be focusing our efforts (and resources) both now and in the future. This will enable us to develop longer-term, sustainable approaches to diversity, that are linked to the changing needs of our organisations and communities.

In June 2009, the Department for Work and Pensions (DWP) and the Equalities and Human Rights Commission (EHRC) produced a report looking at the impact of the recession across the demographic groups of age, gender, race and disability. Data in this report considers the first quarter of 2009 compared to the position one year earlier.

The report found that:
• Unemployment rate of the UK’s male population has risen by 2.4 percentage points to 8.1% in the year to March 2009;
• For women, unemployment has risen by 1.4 percentage points to 6.4%;
• In the recession of the early 1990s, male employment rates fell steeply over a short period of time as the industries that were more adversely affected were those characterised by a largely male workforce;
• Our labour market now is less segregated and women, who now make up a greater proportion of the workforce, are no longer as sheltered from the impact of recession;
• Historically young people have higher rates of unemployment, so relatively more young people will be affected by the recession;
• 16.2% of our 18-24 year olds are now out of work and young people leaving education this summer will face tougher labour market conditions;
• In particular, young men and less qualified young people have less chance of finding a job than anyone else.

The report also claims that employment among ethnic minorities, disabled people and older people has remained relatively stable though it is acknowledged that employment among these groups was lower to start with. The research highlights a marked increase in the rate of unemployment of people from ethnic minorities since the start of the recession in 2008. In particular, unemployment levels amongst members of the Caribbean and African community have risen by 6.9%, from 13.2% in the first quarter of 2008, to 20.1% in the third quarter of 2009. This is in contrast to a 2.8% increase in white unemployment, which is up from 4.8% to 7.6%, over the same period.
(Monitoring the impact of the recession on various demographic groups, June 2009, DWP, EHRC).

The Fawcett Society (March 2009) describes a ‘man-made’ recession and argues that some of the measures currently being used to explore the impact of the recession do not adequately reflect women’s experiences.

For example they note that:
• There are more women in employment now than previous recessions;
• There are more lone parent (predominantly female) households;
• The concentration of women in certain sectors and their working patterns create economic vulnerability;
• Women are less able to withstand the impact of recession;
• Women are more likely to work in part time and vulnerable employment.
(Are women bearing the burden of the recession? A Fawcett Society report. March 2009)

Furthermore the Fawcett Society (2009) believes that the recession is on course to present two major risks if current policy approaches do not adapt:
• Ethnic minority women living in poverty will be locked into their destitution for the foreseeable future;
• Even more ethnic minority women will be made vulnerable to poverty.
(Poverty Pathways, Fawcett Society, 2009)

The Office for National Statistics (2009) notes that:
• The number of females working past the age of 60 increased significantly in the last year;
• There were 936,000 women working beyond 60 years during the three months to June 09;
• These figures are up by 58,000 for the same period in the previous year;
• More than twice as many women as men are working above state pension age.

According to the Alliance against Pregnancy Discrimination in Britain (Nov 2009):
• Poverty is a contributing factor in domestic violence;
• Financial hardship is resulting in more women remaining in abusive relationships;
• There is an increase in the number of pregnant women and new mothers being made redundant;
• Some employers are using recession as an excuse to break discrimination laws;
• Some women are returning from maternity to find their jobs have gone or have been downgraded.

Nigel Meager from the Institute for Employment Studies (2009) challenges some of the data previously published with regard to the impact of the recession on disabled people. Meager suggests the definition should be broader than people who meet the Disability Discrimination Act (DDA) definition of disability – having a physical, mental or sensory impairment that has a long-term adverse impact on the ability to carry out normal day-to-day activities. He suggests it is more useful to include a definition of disability that includes a ‘work limiting’ health problem or disability.

Using this broader classification Meager argues there has actually been a decline in disabled people’s employment rate in recent years. Meager also notes that disabled people as defined by the DDA definition have a higher employment rate than those who are disabled using the ‘work limiting’ disability definition.

A report from the Leonard Cheshire Disability charity (2009) warns that the employment gap between able-bodied and disabled employees is widening as a result of the recession.

The report, based on a survey of over 1,250 disabled people across the UK, found that more than half of respondents (52%) had experienced discrimination in the workplace in the past year, an increase of 11% since 2007. Over four in ten (43%) believed they had been turned down for a job because of their disability - a 7% increase.

Colleagues in the public sector may be interested to note that figures from 2007 suggest that almost a third of the disabled workforce is employed in the public sector. The Cheshire report stresses how public spending cuts could, therefore, have a disproportionate impact upon disabled workers. The report goes on to say that disabled people’s higher levels of poverty also means they are more likely to rely on public services, such as healthcare, social services and public transport, than non-disabled people.
(The Disability and the Downturn, 2009, report from the Leonard Cheshire Disability charity)

Perhaps unsurprisingly, the recession is having an impact upon people’s mental health. However, there is evidence that the impact upon men is higher than amongst women.

A Mind survey of 2055 adults was undertaken in January 2009 looking at how individuals were responding to the recession.

They found that:
• 37% of men are feeling worried or low;
• Middle aged men are 7 times more likely than women to have suicidal thoughts;
• Only 23% of men would see their GP if they felt low for over a fortnight;
• Men were only half as likely to talk to friends about problems as women;
• 31% of men would feel embarrassed about seeking help for mental distress;
• Just 14% of men (35-44yrs) would see a GP if they felt low compared to 37% of women;
• 4% of young men (18-24yrs) would see a counsellor if they felt low compared to 13% of young women;
• Only 31% of men would talk to their family about feeling low compared to nearly half of women;
• Almost twice as many men as women get angry when they are worried;
• Almost twice as many men as women drink alcohol to cope with feeling down;
• 45% of men think they can fight off feeling down compared to 36% of women.

Mind highlight in their report that even though men and women experience mental health problems in roughly equal numbers, men are much less likely to be diagnosed and treated for it. They also highlight the fact that 75% of all suicides are by men, and raise concerns that the recession could make the situation even worse particularly as one in seven men develop depression within six months of losing their jobs and two-thirds of men under 35yrs were out of work when they took their own life.

The report also highlights that mental health problems can impact upon certain groups of men in different ways, for example, African Caribbean men who are more likely to receive disproportionately aggressive treatment. Evidence has shown that they are three times more likely than white men to be formally detained under the Mental Health Act. They are also more likely to receive invasive medical treatments such as electroconvulsive therapy.

Gay and bisexual men are also highlighted as facing a significantly higher risk, with evidence pointing to the fact that they are over four times more likely than heterosexual men to attempt suicide.
(Men and mental health: Get it off your chest, Mind, May 2009)

There appears to be very little current research on the impact of the recession specifically on lesbians and gays. However, it is clear that many still struggle for equality within the workplace and continue to report being bullied and harassed due to their sexuality.

Stonewall research (2007) found that nearly one in five lesbian and gay people experienced bullying from their colleagues because of their sexual orientation.
(Serves You Right Lesbian and gay people’s expectations of discrimination, Stonewall, Dec 2007)

Stonewall’s research on the productivity of lesbian and gay staff in the workplace (2008) found that gay staff who can be out at work in a safe environment are more productive than their gay colleagues who have to hide their sexual orientation at work and/or work in less inclusive environments.

Having to hide their sexual orientation, it is claimed, can adversely impact on their efficiency, their ability to build relationships with colleagues and clients, their confidence and their motivation.
(Peak Performance, Gay People and Productivity, Stonewall, 2008)

This theme is echoed in more recent research undertaken by the EHRC (2009) in which they state that ‘Seven in 10 lesbians (69 per cent) and gay men (70 per cent) felt they could be open about their sexual orientation in the workplace without fear of discrimination or prejudice. This contrasts sharply with only around two in 10 (23 per cent) bisexual men and three in 10 (30 per cent) bisexual women who felt the same. 83 per cent of respondents would be happy or felt neutral about having an openly LGB manager at work.’
(Beyond Tolerance, EHRC, 2009)

According to Ellison and Gunstone (2009) developing a workplace culture in which LGB employees are able to be open and comfortable makes good business sense in terms of productivity, company reputation and recruiting from the widest pool of talent. This will have particular relevance for public sector employers when addressing the needs of LGB people with the new single Public Sector Duty coming into force.

On a more positive note, a Business Link study published in July 2009 highlighted an optimism amongst Lesbian, Gay, Bisexual and Transgender (LGBT)-owned businesses in terms of their projected growth for the next twelve months. 85% of LGBT-owned businesses reported that they have plans to grow in the next year.

The report also highlighted that these businesses were seeking opportunities in new markets and saw this as a key driver to growth, with around 50% of all LGBT businesses targeting new markets as a means to growth, compared with just 44 per cent of their heterosexual counterparts.

However, when looking at the impact of the recession as a whole, LGBT businesses reflect the issues faced by the rest of London’s small business sector.
(Diverse Business Confidence Index, Business Link London, July 2009)

This research represents a mixed picture regarding the impact of the economic downturn upon the different groups, and highlights some worrying trends that organisations may wish to consider as part of their strategic approach to diversity and talent management. In the next issue, we explore the implications of this research and look at some practical ways we can minimise the negative impact of the downturn upon our diverse workforce.

Janice Joannou
Lead Officer for Diversity, PPMA
Director, Rainbow Consultants
Janice@rainbowconsultants.org.uk

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