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Local Philanthropy Headlines
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"How Do We Know Our City is Improving?"
The Daily Record
September 7, 2004
Odette Ramos
Many Baltimore City residents strive for a good quality of life that includes the opportunity to work, increase income, and become financially stable to provide for their families.
The unemployment rate reported monthly and annually is not the best way to know if Baltimore is making progress toward this goal because it only includes a portion of the population in the calculation — those in the labor force only, and not the full working age population (people ages 16-64).
Participants in the labor force are actively looking for work or already employed, which is 65.8 percent of Baltimore City's population. But what about the group not in the labor force — those who are not working and not actively looking for work?
The typical unemployment figure does not consider this important group in the equation. People may not participate in the labor force for several reasons. Some choose not to enter because they are caring for loved ones, or attending school or job training to refine and obtain new skills.
Others face several barriers that may hinder them from even trying to enter the labor force, such as lack of transportation to jobs, disability, or they are not “job ready” (they lack basic skills and confidence).
Additionally, they could be discouraged and frustrated by a downturn in the job market, or by supervisors hesitant to hire them because of past history of drugs or crime. In essence, the typical unemployment rate does not enable us, nor challenge us, to get the complete picture of progress toward employment in Baltimore City.
By only using the unemployment rate as a marker of progress, we only see employment relative to those people who feel they are ready, willing and have the opportunity to work. The people facing barriers to get into the labor force are overlooked.
That is why one of the Vital Signs measures the percent of the working age population (ages 16-64) that is not the labor force to see if Baltimore City is making progress toward its goal.
This indicator is included in the set of 40 Vital Signs — the outcome indicators that “take the pulse” of Baltimore City neighborhood conditions and track progress toward strong neighborhoods, good quality of life, and a thriving city over time. So what has been happening in Baltimore?
Over the past 10 years, 5.3 percent more people did not participate in the labor force (34.1 percent in 2000 compared to 28.8 percent in 1990). The trend was similar statewide, although not as dramatic. In Maryland, 2.9 percent more people did not participate in the labor force (23.1 percent in 2000 compared to 20.2 percent in 1990).
Looking at the Vital Signs at the neighborhood level, the highest concentrations of the working age population not in the labor force reside in 14 of the 55 Community Statistical Areas (CSAs).
In these areas, mostly in the heart of east, west, and parts of southwest Baltimore, over 40 percent of their respective working age populations are in this situation. (Note: CSAs are clusters of neighborhoods). Although these numbers indicate that overall in Baltimore City, fewer people participate in the labor force, we know that several groups are taking initiative to reverse this trend.
Many of Baltimore's workforce development and job training programs, City school reforms, and other related initiatives concentrate on moving people into the labor force and ultimately into employment where they can continue to gain skills and increase their income.
When more people enter the labor force, (i.e. the percent of the population not in the labor force falls) and ultimately more of the entire population, not just part of it, is employed, then we know that efforts to improve schools, train people for jobs, and bring in businesses that provide more jobs, could be factors that have an impact on making progress toward long-term change.
Odette T. Ramos is executive director of the Baltimore Neighborhood Indicators Alliance. For access to Vital Signs data, call 410-235-0944.
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