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Labor participation of people with a work disability is recovering after the corona crisis

The groups we follow in the monitor relatively often work in temporary employment contracts and as temporary workers. The common thread in the development of their labor participation during the corona crisis seems to be the extent to which the different groups work in temporary employment contracts. The greater the proportion of people with a temporary contract, the stronger the decline in 2020 and the stronger the recovery in the first half of 2021. This is apparent from the UWV’s Employment Participation Monitor for people with disabilities.

Clear decline in 2020

Compared to the development in the labor market as a whole, the employment rate of the groups of people with disabilities has fallen relatively sharply in 2020. For the total Dutch population, the participation in December 2020 was 0.5% lower than at the end of December 2019. The decrease between -1.9 and -4.0% was clearly greater in the four groups of people with disabilities that are the focus of this monitor. In the first half of 2021 we see a differentiated picture. There was talk of an economic recovery. The employment rate for the total Dutch population rose by 0.8% and the level of participation is already slightly higher than before the corona crisis. The recovery in the four groups of people with disabilities was also stronger on average than in the labor market as a whole: between 0.8 and 4.6%. An exception is the group of people who are completely incapacitated for work under the WGA. Their employment rate continued to decline in the first half of 2021 (-3.7%).

Strong recovery of labor participation in Participation Acts in the first half of 2021

Up to and including 2019, the participation of the Participation Actors in the target group register increased every year. That changed because of corona. At the end of 2020, the percentage of working Participation Actors had fallen from 46.4% to 45.3%. In the first half of 2021 we see a very different development. The share of employed people rose sharply, reaching 47.4% in June 2021 above the level at the end of 2019. This is because the recovery in employment mainly occurred for temporary workers and people with a temporary contract, and also especially in the sectors important for Participation Wetters, with the Temporary Employment sector (+37%) standing out the most. In other words: in a few months the situation has turned around and the damage caused by the corona crisis in terms of the share of workers has been negated.

Labor participation rate for Wajongers is recovering relatively slowly

In 2019, the number and share of working Wajongers decreased for the first time since 2012. During the corona crisis, we see an additional decrease in 2020 and at the end of 2020 the share of employed people was 48.4%, 2 percentage points lower than at the end of 2019. In the beginning of 2021, the share fell further, but from March 2021 there was a recovery, so that we amounted to 48.9% in June 2021. The share is then again above the level of 2020, but that is still 1.5 percentage points lower than at the end of 2019. The labor participation of the Wajongers is therefore recovering somewhat, but the blow of 2020 has not yet been undone.

Labor participation of WIA groups will partly recover in 2021

We distinguish three ‘WIA groups’ in this monitor: people with a full WGA benefit (80-100% incapacity for work), people with a partial WGA benefit (35-80% incapacitated for work) and people who did not receive a WGA benefit because they were less than 35% incapacitated for work (WIA under 35s).

The general picture for the three groups is that, due to the economic recovery, a somewhat larger share started to find work since 2014–2015, but that growth had stopped in 2019. In the corona year 2020, labor participation in the WGA groups decreased. The proportion of people in work who received full WGA benefit fell from 8.8% in 2019 to 8.2% in 2020, the WGA group partially fell from 47.2% to 46.3% and the WIA under 35s from 50.2% to 48.5%. In the first half of 2021, we will see a partial recovery among the groups that are not completely incapacitated for work. The participation in the WGA partial group rose from 46.3% to 46.7% and among the WIA under 35s from 48.5% to 49.2%. However, the share of working people fell to 7.9% among people with a full WGA benefit.

Compared to Wajongers and Participatiewetters from the target group register, partially WGA workers relatively often work in the public sector (36% in 2019) and relatively few in the industries that were hit hardest by the corona crisis, such as the Horeca & catering and the Temporary employment sector (together 10 % in 2019). As a result, they were relatively less affected by the crisis in 2020, but they benefit relatively less from the employment recovery in 2021, which is mainly taking place in those sectors.

Labor participation of people with a work disability is recovering after the corona crisis
Source link Labor participation of people with a work disability is recovering after the corona crisis

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