Increases In Unemployment Reflect More People Looking For Work


Unemployment increased slightly in June for people with and without disabilities, according to Friday’s National Trends in Disability Employment (nTIDE) COVID Update. The June data are consistent with the gains in labor force participation rates detailed  in this month’s prior nTIDE report, noted nTIDE expert John O’Neill, PhD,director of the Center for Employment and Disability Employment Research at Kessler Foundation.

“We need to remember that unemployment data includes people looking for work, so this month’s unemployment picture appears to reflect people entering the labor market to increase family income in response to the rapidly rising cost of living,” said Andrew Houtenville, PhD, professor of economics at the University of Hampshire (UNH) and research director of the UNH Institute on Disability.

While efforts to stem inflation will begin to slow economic growth, there will be a lag in the effects on employment. “We would not be seeing the impact of counter-inflationary measures on the labor market so soon,” Dr. Houtenville explained. “It takes a while for a downshift in economic growth to lead to job losses. If the inflation trend continues, however, the Fed may take more actions that would raise the risk of a more drastic downshift.”

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