Employment of ex-offenders during the recession.

Nally, John M. ; Lockwood, Susan R. ; Ho, Taiping 等

Introduction

Researchers have rarely examined post-release employment among offenders during a period of economic recession. However, studies on employment issues among post-release offenders have showed that released offenders would likely have a higher unemployment rate due to their inadequate education and job skills (Batiuk, 1997; Harlow, 2003; Vacca, 2004). Researchers (Visher et al., 2006) indicate that most released offenders are fully aware of the importance of finding a job in an effort to avoid illegal activities and a subsequent return to incarceration. Realistically, released offenders face incremental barriers to employment due to a criminal history, lack of formal education, job skills, and interpersonal skills (Rossman and Roman, 2003). Even though there are many foreseeable challenges to employment for post-release offenders, this study intends to examine the job sectors that have provided employment for Indiana's ex-offenders during a significant recessionary period. The results of this study may have an impact on correctional education in terms of modifying the program offerings to prepare incarcerated individuals for employment success during an era of high unemployment and fierce competition for available work.

Data Description and Employment Measures

In order to conduct a longitudinal study on employment and unemployment among released offenders, the present researchers compiled the Department's monthly release files throughout 2005 and selected 6,561 Indiana offenders, which represented 43 percent of the 15,184 offenders who were released from the Indiana Department of Correction (IDOC) in 2005. Subsequently, the present researchers accessed three primary data sources to determine the group's experience in employment and wages as well as recidivism. The final dataset combined elements from the IDOC Division of Research and Planning, IDOC Education Division, and the Indiana Department of Workforce Development (DWD).

The Planning Division of the IDOC maintains the data specific to individual offenders including demographical characteristics, legal records, and other relevant information. The employment-related information in this study is based on employed offenders' W-9 forms. The Indiana Department of Workforce Development (DWD) provided crucial employment-related information such as offenders' employment (i.e., job title) and quarterly wages to analyze the employment and unemployment rates among released offenders during the recession period.

The main focus of this study was the examination of employment among released offenders during the recession period. Due to the fact that the present data contained employment-related information in the period of 2006-2009, the researchers were able to analyze: (1) the employment rates among released offenders during the recession period (2008-2009); (2) the employment rates before and during the recession period; (3) job sectors that have employed released offenders; and (4) the wages among employed offenders. It is important to note that the employment-related information from the Indiana Department of Workforce Development (DWD) was consolidated into quarterly-based employment statistics. For the present study, a released offender was regarded as "employed," if he or she had been employed at least one (1) quarter in a given year. Meanwhile, this study has systematically examined the recidivist status among released offenders in the study period. The calculation of the employment rate excludes those recidivist offenders who have returned to incarceration regardless of cause in any given quarter in this study period.

What is the Unemployment Rate in the Recession Years among Released Offenders?

Results of this study show, as Table 1 and Figure 1 indicate, that the unemployment rates among released offenders significantly increased from 2006 to 2009. Excluding the recidivist offenders since their release in 2005, the unemployment rate was 48.0 percent in 2006, 55.8 percent in 2007, 61.3 percent in 2008, and 69.7 percent in 2009. The average of the unemployment rate in the pre-recession years (2006-2007) among released offenders was 51.9 percent; the average of the unemployment rate increased to 65.5 percent in the recession years (2008-2009).

Table 1: The employment and unemployment rates (by year) among Indiana
offenders who were released in 2005 (n=6,561)

Time Employment Status Employment Status
Period/Offender with Incarcerated without
Status Offenders Incarcerated
 Offenders

2006 (1st Quarter
thru 4th Quarter)

Unemployed 2976 (45.4%) 2976 (48.0%)

Employed 3229 (49.2%) 2186 (52.0%)

Incarcerated 356 (5.4%)

2007 (1st Quarter
thru 4th Quarter)

Unemployed 3249 (49.5%) 3249 (55.8%)

Employed 2573 (39.2%) 2573 (44.2%)

Incarcerated 739 (11.3%)

2008 (1st Quarter
thru 4th Quarter)

Unemployed 3628 (55.3%) 3628 (61.3%)

Employed 2285 (34.8% 2285 (38.7%)

Incarcerated 648 (9.9%)

2009 (1st Quarter
thru 4th Quarter)

Unemployed 4200 (64.0%) 4200 (69.7%)

Employed 1823 (27.8%) 1823 (30.3%)

Incarcerated 538 (8.2%)

Note #1: An offender was regarded as "employed," if he or she
had been employed at least one quarter in any given year

Note #2: An offender was coded as "incarcerated," if he or she
was incarcerated under IDOC custody in all 4 quarters in any
given year

Figure 1: The unemployment rates among released offender in the period
of 2006-2009

Unemployment Rate

2006 48.0%
2007 55.8%
2008 61.3%
2009 69.7%

Note: Table made from bar graph.

The 6,561 offenders in this study were released to five (5) counties in State of Indiana (Allen, Lake, Marion, St. Joseph, and Vanderburgh). The average unemployment rate in those five counties in this study was 5.1 percent in 2006, 4.8 percent in 2007, 6.8 percent in 2008, and 9.8 percent in 2009. Even though the recent recession started in December of 2007 and ended in late 2008, the unemployment rate in 2009, right after the officially-recognized recession, was significantly higher than that in the recession period. Therefore, the present researchers divided this 4-year dataset into two segments: the pre-recession period (2006-2007) and the recession period (2008-2009). As statistics from the Indiana Department of Workforce Development demonstrated, the unemployment rate among released offenders was almost 8 times more than the general population in the State of Indiana during the recession years (2008-2009). The results of this study clearly indicate that offenders have encountered increasing challenges in securing and maintaining employment in the recession years since their release from IDOC in 2005.

What Kinds of Jobs Were Available for Released Offenders in the Pre-Recession and in the Recession Years?

Understandably, released offenders encounter many obstacles when seeking employment. In the recession years, with limited opportunities available to the general population as a whole, it was more difficult for released offenders to obtain a job. Nevertheless, this study's results showed, as Table 2 indicates, that offenders were employed in several different job sectors in the pre-recession years (2006-2007) and in the recession years (2008-2009). Furthermore, Figure 2 reflects the changes in employment in major job sectors in the pre-recession year (2007) and in the recession year (2008). Most importantly, this study revealed the five (5) major job sectors where released offenders were likely to be employed, which included: "temporary help services," "manufacturing," "wholesale and retail trades," "construction," and "lodging and food services."

Table 2: Major employment sectors among employed offenders since
release (in percentage)

Employment 2006 2007 2008 2009
Sector (n=3229) (n=2573) (n=2285) (n=1823)

Agriculture, 0.3% 0.2% 0.1% 0.2%
Mining &
Farm-related

Construction 13.8% 11.2% 9.9% 9.0%

Manufacturing 20.6% 17.4% 16.7% 13.5%

Wholesale & 16.5% 13.7% 14.3% 14.8%
Retail Trades

Temporary Help 26.8% 24.8% 25.2% 22.8%
Service

Lodging & Food 12.7% 19.3% 18.1% 21.4%
Services

Repair & 2.2% 3.9% 3.6% 3.9%
Maintenance

Other 7.2% 9.5% 12.1% 14.4%
Employments

Note #1: There were 3,229 offenders were employed in 2006; 2,573
offenders were employed in 2007; 2,285 offenders were employed in
2008; 1,823 offenders were employed in 2009.

Note #2: Approximately 8 percent of "employed" offenders had more
than one job in any given quarter and a vast majority of such
additional employments were part-time.

Note #3: The percentage is used to examine the trend of employment
or unemployment among released offenders in different job sectors
in this study period. Therefore, all employments that offenders were
employed in any given year were included.

Figure 2: Job sectors that employed released offenders in the
pre-recession year (2007) and in the recession year (2008)

Job Sectors in 2007

Agriculture etc. 0.3%
Construction 13.8%
Manufacturing 20.6%
Wholesale & Retail 16.5%
Temporary Help Services 26.8%
Lodging & Food Services 12.7%
Repair & Maintenance 2.2%
Other Employments 7.2%

Job Sectors in 2008

Agriculture etc. 0.1%
Construction 9.9%
Manufacturing 16.7%
Wholesale & Retail 14.3%
Temporary Help Services 25.2%
Lodging & Food Services 18.1%
Repair & Maintenance 3.6%
Other Employments 12.1%

Note: Table made from bar graph.

Temporary Help Services

One striking finding was that the "temporary help services" industry was the major sector that would likely employ released offenders in the pre-recession years (2006-2007) and in the recession years (2008-2009). According to North American Industry Classification System (NAICS) (U.S. Census, 2011), "This industry comprises establishments primarily engaged in supplying workers to clients businesses for limited periods of time to supplement the working force of the client. The individuals provided are employees of the temporary help service establishment. However, these establishments do not provide direct supervision of their employees at the clients' work sites." This study revealed that the temporary help services industry became one of the most dependable job sectors for the employment of offenders after their release from IDOC. A recent report (Shapiro, 2011) showed that 60 percent of the new jobs in 2010 were generated in those low-wage industries such as "temporary help services," "leisure & hospitality," and "retail trade."

The temporary help services industry, which has played an important role in the American economy, has been firmly and traditionally rooted in American labor markets and has provided temporary workers, mostly on an hourly basis, to meet with job demands from a variety of industries (Moore, 1965; Peck and Theodore, 2005). Through the use of employment and wage data from the Bureau of Labor Statistics and Occupational Employment Statistics programs, Luo, Mann, and Holden (2010) conducted a comprehensive study on the fast-growing temporary help services industry and found that temporary workers who were employed by the temporary help services agencies had increased from 1.1 million in 1990 to 2.3 million in 2008. Temporary employment in the Midwest during the same period increased 117%. Most importantly, Luo et al. (2010, p. 3) stated, "In fact, around both the time of the 2001 recession and that of the recession that began in December 2007, temporary employment declined before total employment did and temp help services experienced employment growth before the overall job market did."

This study in Indiana revealed the same trend of employment in temporary help services agencies among released offenders in the period of 2006-2009. Specifically, the results of this study showed that 26.8 percent of released offenders were employed by temporary help services in 2006, 24.8 percent in 2007, 25.2 percent in 2008, and 22.8 percent in 2009.

Manufacturing

Access to manufacturing employment declined during the recession. Although 25% of the State's economy (the highest in the nation) is directly related to manufacturing activities, the number of Hoosiers involved in the sector reached a ten-year low in 2009 (Orr, 2010). This primary component of Indiana's economy shed one-hundred thousand jobs in the past three years (Evanoff, 2011).

Employment in manufacturing among released offenders steadily declined during the recession years (2008-2009) in Indiana as portrayed on Table 2. In 2006, manufacturing jobs accounted for 20.6 percent of the total employment of ex-offenders but by 2009 it was reduced to 13.5 percent.

The recovery following the early 1980's recession took five years to get back to "normal" and Conover (2010) notes that the "current situation does not offer cause for optimism that this time will be much different."

Construction

The results of this study revealed, as Table 2 indicates, that employment in the construction sector among released offenders steadily declined from 13.8 percent in 2006 to 9.0 percent in 2009. There were 411 classifications of construction-related jobs which were defined by the North American Industry Classification System (NAICS) (U.S. Census Bureau, 2011). Nonetheless, the construction industry primarily consisted of three major sectors: (1) residential and non-residential construction, (2) heavy and civil engineering construction, and (3) specialty trade contractors. A notable number of released offenders were employed in either residential or non-residential construction such as housing or industrial building construction.

Since the beginning of 2006, job losses in residential construction were significant. The decline in construction and the overall weak housing market were directly associated with the subprime crisis (Sanders, 2008). The escalating unemployment rates exerted a direct and negative impact on employment among released offenders in the construction industry.

Even though the recession officially started in December 2007, the construction industry across the United States steadily declined in early 2007 and construction job recovery was expected to be slow (Meyers, 2010). In other words, released offenders continued to encounter difficulty in finding employment in the construction sector.

Lodging and Food Services

As shown in Table 2, employment in the lodging and food services industry steadily increased from 12.7 percent in 2006 to 21.4 percent in 2009. Within this employment sector offenders were employed as "food preparation and service workers," "food services," "waiters and waitresses," "chefs and cooks," and "hotel desk clerks."

The lodging and food services industry is generally considered as "leisure and hospitality" in the category of service-providing industry. According to reports and statistics of U.S. Bureau of Labor Statistics (U.S. Department of Labor, 2011), employment in the "leisure and hospitality" industry decreased in 2008 but showed a steady increase in 2009 and beyond. Such jobs were likely temporary and part-time with an average hourly wage of eleven (11) dollars.

The Annual Income of Post-Release Employed Offenders and the Marginally-Employed Offenders

Results of this study revealed, as shown in Table 3, that the employment rate among released offenders steadily decreased from 40.9 percent in 2006 to 25.1 percent in 2009. The average employment rate in the pre-recession years (2006-2007) was 36.8 percent, but only 28.8 percent in the recession years (2008-2009). The decrease of the employment rate among released offenders in the period of 2006-2009 reflected the reality that offenders had encountered many obstacles to finding a job in the recession period.

Table 3: The annual income among employed offenders (in percentage)

Level of 2006 2007 2008 2009
Annual (n=2681) (n=2144) (n=2124) (n=1644)
Income (40.9%) (32.7%) (32.4%) (25.1%)

Under 48.0% 47.5% 49.6% 49.8%
$5,000

Between 18.4% 17.7% 16.2% 17.6%
$5,000 and
$9,999

Between 20.9% 19.4% 17.5% 16.3%
$10,000 and
$19,999

Between 7.6% 9.3% 9.6% 8.7%
$20,000 and
$29,999

Between 3.2% 3.9% 4.7% 4.7%
$30,000 and
$39,999

Between 1.0% 1.3% 1.5% 1.4%
$40,000 and
$49,999

$50,000 or 0.9% 0.9% 1.0% 1.6%
above

Note #1: The annual income (i.e., wage) was based on information, which
was provided by the Indiana Department of Workforce Development (DWD).
Nevertheless, a relativel small percentage of employed offenders, whose
quarterly wages, were unspecified.

Note #2: The percentage is used to examine the trend of annual income
among employed offenders in this study period.

Note #3: The statistics in the parenthesis represent the number of
released offenders who were employed and the employment rate in any
given year.

Furthermore, this study found that the annual income among those employed offenders in the pre-recession years (2006-2007) was similar to that of the recession years (2008-2009). For example, as demonstrated in Figure 3, the annual income among employed offenders was very similar in the pre-recession year (2007) and in the recession year (2008). One striking finding was that a vast majority of employed offenders had an annual income under $10,000 (i.e., 66.4% in 2006, 65.2% in 2007, 65.8% in 2008, and 67.4% in 2009). Also, a notable number of employed offenders had an annual income between $10,000 and $19,999, and only a small percentage of employed offenders had an annual income above $30,000.

Figure 3: Annual income in the pre-recession year (2007) and in the
recession year (2008)

Annual Income (2007)

Under $5,000 47.5%
between $5,000 and $9,999 17.7%
between $10,000 and $19,999 19.4%
between $20,000 and $29,999 9.3%
between $30,000 and $39,999 3.9%
between $40,000 and $49,999 1.3%
$50,000 or above 0.9%

Annual Income (2008)

Under $5,000 49.6%
between $5,000 and $9,999 16.2%
between $10,000 and $19,999 17.5%
between $20,000 and $29,999 9.6%
between $30,000 and $39,999 4.7%
between $40,000 and $49,999 1.5%
$50,000 or above 1.0%

Note: Table made from bar graph.

The most extraordinary finding in this study was that close to 50% of employed offenders had an annual income under $5,000 in this study period (2006-2009). Those employed offenders were primarily temporary workers who were employed in the "temporary help services" sector, "food services" sector, or "manufacturing" sector. Specifically, they were marginally-employed in terms of wage and working hours. Results of this study also revealed that released offenders were likely to be marginally-employed in both the pre-recession years (2006-2007) and in the recession years (2008-2009).

Implications to Correctional Education Programs

The Indiana Department of Correction (IDOC) has evidence that those offenders with the experience of formal education or skill-oriented training during incarceration are more likely to have a higher employment rate and a lower recidivism rate once they have released from IDOC. While comparing employment among released offenders in the pre-recession and in the recession period, this study's results provided several essential indications for correctional education programs in terms of its curriculum and program objectives in the State of Indiana.

Implication #1: Enhancing Skill-Based Training Programs or Curriculum

Even though employment in construction and manufacturing has steadily declined during the recession years, construction and manufacturing continued to employ a notable number of released offenders in a variety of specialized fields. Taking construction as an example, Meyers (2010) indicated that employment projections for the 10 largest occupations in construction in the period of 2008-2018 were: (1) carpenters; construction laborers; (2) electricians; (3) supervisors and managers of construction; (4) trades and extraction workers; (5) painters, construction and maintenance; (5) plumbers, pipefitters, and steamfitters; (6) operating engineers and other; (7) construction equipment operators; (8) sheet metal workers; (9) construction managers; and (10) cement masons and concrete finishers.

Each of the above-mentioned construction-related jobs demands a special skill and/or certification to be qualified for such employment. Incarcerated offenders must equip themselves with special skills to meet the demands of widely-diversified manufacturing jobs.

Implication #2: Finding a Job at the "Temporary Help Services" Agencies

Temporary help agencies provided more jobs to post-release offenders than any other job sector in the pre-recession years and the recession years as well. There is no indication that the trend will diminish. However, the employment categories within the industry are shifting (Luo, et al. 2010).

Undoubtedly, "temporary help services" serves as bridge to permanent employment in many job sectors. Luo et al. (2010, p. 5) stated, "Employment in temporary help services in recent years has shifted away from low skilled and lower paying jobs to more highly skilled and higher paying staffing positions. In recent years, the fastest growing occupational groups have been legal, business and financial operations; computer and mathematical; education, training and library; and community and social services occupations." This suggests that post-release offenders must possess a satisfactory level of competency in computer skills, reading, math, communication, and specialized job skills to secure positions in a shifting job-market. It is important to note that the average time served among the Indiana incarcerated offenders was approximately 18 months, making it difficult for some offenders to complete a degree program or a time-demanding career technical program.

Conclusion

Indiana accessed $7 million in federal funding to assist with retraining close to 7,000 displaced workers in 2010. The funding was used for tuition payments, extended unemployment compensation, and stipends for job searches and relocations (Indiana Business Journal, 2010). In contrast, most offenders reentered their communities unable to access the retraining opportunities afforded to their fellow citizens. Without the education and job-training necessary to compete for a limited number of jobs, those offenders struggled to secure employment. The results of this study support the need for offenders to further their education and job-training while incarcerated in order to have a chance for success upon release.

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John M. Nally, Ed.D.

Susan R. Lockwood, Ed.D.

Taiping Ho, Ph.D.