Lead Article
First Out, Last Back: The
Economic Impact of the COVID Crisis on New Yorkers With Disabilities
By Melissa Lent, Eli Dvorkin, and Laird Gallagher
Report - March 2021
New Yorkers with disabilities are suffering among the steepest economic
losses and hardships from the coronavirus pandemic and face an especially
challenging path back to employment, while the organizations that serve
them have sustained millions in lost revenue.
Amid a pandemic that has taken a disproportionate toll on the most vulnerable
New Yorkers, this report finds that the economic impact on New Yorkers
with disabilities has been especially severe.
Even before the pandemic
hit, just 35 percent of working-age New Yorkers with disabilities were
employed, and more than one-third were experiencing poverty. But over
the past nine months, these economic challenges have been magnified.
Interviews with more than a dozen direct service providers and advocacy
organizations across the five boroughs reveal the massive economic hardship
that New Yorkers with disabilities are enduring including near-total
job losses and unending furloughs as well as the fiscal cliff
facing the organizations that serve them.1
Five of the organizations
interviewed for this report say at least half of their clients with
disabilities have lost their jobs or been furloughed and remain unemployed
because of the pandemic, with some reporting near-total job losses among
New Yorkers with disabilities. At the JCC Manhattan Center for Special
Needs, about 70 percent of its clients with disabilities were laid off,
and around 20 percent were furloughed. The Institute for Career Development
(ICD), which helps New Yorkers with disabilities access employment,
reports 75 percent or more of its clients in full-time employment lost
their jobs or saw a reduction in hours. And even as employment has shown
modest signs of recovery citywide, around 60 to 70 percent of Job Path
NYCs clients people with autism and other developmental
disabilities remained furloughed, more than eight months after
lockdown. (Interviews for this report were conducted in October and
November of 2020.)
The pandemic has only magnified
these economic challenges, in large part because many of the jobs and
industries that have provided an entryway to the workforce for New Yorkers
with disabilities have experienced the steepest losses. Individuals
with disabilities are usually the first laid off and the last to be
rehired in an economic downturn, says Susanne Bruyère,
disability researcher and director of the Yang-Tan Institute on Employment
and Disability at Cornell University. But she says that the specific
impacts of this crisis are resulting in extreme challenges for New Yorkers
with disabilities. People with disabilities have always been in
lower-end jobs, in part-time jobs, jobs that you find in service industries
like restaurants and hospitality, but also nursing homes and hotels.
And those industries have been hit really hard.
Even in a growing economy,
New Yorkers with disabilities faced alarmingly long odds of achieving
stable employment. In fact, the unemployment rate for working-age New
Yorkers with disabilities in 2017 (14.7 percent) was higher than the
citywide unemployment rate in October 2020 (13.2 percent). For many
New Yorkers with disabilities, Great Depressionlevel unemployment
was already routine. But while other dimensions of this ongoing crisis
have received significant attention from policymakers and in the media,
the enormous economic challenges facing New Yorkers with disabilities
have largely flown under the radar.2
The disproportionately
low rate of participation in the labor market for people with disabilities
is a huge problem, says Julie Christensen, director of policy
and advocacy from the Association of People Supporting Employment First
(APSE), a national organization that supports employment opportunities
for people with disabilities. And we have not really made progress
in the last 30 years.
Meanwhile, many of the
organizations that serve New Yorkers with disabilities have sustained
steep financial losses, with some teetering on the edge of fiscal insolvency.
Organizations have reported the loss of millions of dollars in expected
revenue while incurring major unanticipated costs for technology, personal
protective equipment, cleaning, and other needs. Among the organizations
interviewed for this report, all are reporting revenue declines in 2020
of between 20 and 66 percent. For instance, the Institute for Career
Development estimates that contract revenue will decrease by 66 percent,
and that total revenue will plunge by 40 percent from the previous fiscal
year to this one. A recent survey of 34 New York-based agencies serving
people with disabilities by a statewide coalition underscores this pattern,
finding that these organizations incurred more than $75 million in unanticipated
costs due to the pandemic, and lost almost $63 million in total revenue
since March.3
At a time when programs
and services supporting employment opportunities for New Yorkers with
disabilities will be needed more than ever, their very existence is
threatened. The infrastructure, the network of community-based
organizations that do training and employment for people with disabilities
is at real risk, says Susan Scheer, CEO of the Institute for Career
Development. And there may not be enough provider agencies there
when people are ready to go back to work and when the jobs start picking
up.
This report generously
supported by Citi and Kessler Foundation documents the unprecedented
financial and employment challenges facing New Yorkers with disabilities
during this crisis, as well as the serious vulnerabilities of the organizations
that serve them.
Among our key findings
on income and employment losses for New Yorkers with disabilities:
- Five of the organizations
interviewed for this report say at least half of their clients with
disabilities have lost their jobs or been furloughed and remain unemployed
because of the pandemic, with some reporting near-total job losses
among New Yorkers with disabilities.
- 75 percent or more of
the Institute for Career Development clients who had full-time employment
either lost their jobs or had their hours reduced. At least 400 clients
lost their primary source of income.
- About 70 percent of
JCC Manhattan Center for Special Needs clients were laid off, and
20 percent were furloughed.
- Around 60 to 70 percent
of Job Path NYCs clients were still furloughed more than eight
months after lockdown.
- Over half of the 100
people enrolled in Bronx Independent Living Services COVID-19
relief program have either lost their jobs or had their hours reduced.
- About 1,500 community
members of the Center for Independence of the Disabled NY (CIDNY)
lost their primary source of income.
- The Association of People
Supporting Employment First (APSE), a national organization that supports
employment opportunities for people with disabilities, conducted a
survey with over 20 New York providers; of those organizations, about
60 percent report that their clients have lost employment (490 clients
lost jobs in total).4
Among our key findings
on the economic impact of the crisis on organizations serving New Yorkers
with disabilities:
- Job Path NYC reports
a 30 to 40 percent decline in expected fundraising revenue due to
in large part to a dip in giving caused by the pandemic.
- VISIONS, an organization
providing services to people who are blind or have low vision, lost
a state contract worth $500,000 due to the pandemic and estimates
another $500,000 in lost or delayed revenue for its in-home and community
training programs, which have been canceled or postponed. The organization
estimates incurring between $250,000 and $300,000 in unanticipated
labor, technology, PPE, cleaning and other costs from March through
December.
- Institute for Career
Development estimates that the organization projected a 66 percent
decline in contract revenue in 2020 and a 40 percent decline in total
revenue. The organization also spent about $50,000 to $75,000 to purchase
computers, tablets, hotspots, and Zoom licenses for clients and staff,
to enable remote services.
- New York Foundling,
which provides support services to people with developmental disabilities,
expects to lose $120,000 in projected fundraising in 2020 and $480,000
from vacancies in their residential program, due to the pandemic.
The organization also estimates that it will incur $700,000 in unanticipated
costs for PPE and cleaning equipment.
On top of the ongoing economic
pain felt by New Yorkers with disabilities and organizations serving
them, looming cuts to city and state programs could bring new challenges
to the organizations best positioned to provide employment opportunities
and aid to New Yorkers with disabilities on the long road to recovery.
New York State plans to cut agency contracts by 20 percent, which will
directly reduce available funding for supportive services. Cuts to providers
of services to disabled New Yorkers have been even steeper: New York
States Office for People With Developmental Disabilities (OPWDD)
has reduced the residential reimbursement rate by 50 percent for clients
who live at home or in a hospital, nursing home, or rehabilitation facility,
even if the providers costs remain the same.
Organizations are also
facing challenges due to COVID-caused government slowdowns. A dramatic
slowdown in referrals from state programs like ACCES-VR (Adult Career
and Continuing Ed Services Vocational Rehabilitation) at the height
of the pandemic deprived organizations of much-needed funding linked
to job training and placement, according to several organizations interviewed
for this report. In fact, over 80 percent of providers surveyed by APSE
reported a decrease in vocational rehabilitation funding. The Institute
for Career Development saw virtually no referrals at all from April
to July for its employment programs, and the current referral rate remains
nearly 60 percent lower than in 2019.5
Still, the massive disruption
caused by the pandemic could generate new opportunities for New Yorkers
with disabilities as remote work and virtual programming becomes more
normalized across the economy but only if policymakers, philanthropy,
and the private sector seize the moment to harness them.
One of the ironies
of this moment is that a lot of innovations or opportunities that were
long advocated for by people with disabilities are now being recognized,
says Susan Scheer of the Institute for Career Development. Employment
makes a difference in peoples lives unlike any other policy intervention
Ive seen. We have a unique opportunity to work together on rebuilding
the economy and making sure that equity and inclusion are part of the
process from the start.
This report details the
economic challenges facing New Yorkers with disabilities in this time
of crisis, as well as the financial impact on direct service providers.
Based on interviews with the leaders of more than a dozen organizations
that serve, advocate for, and employ New Yorkers with disabilities across
the five boroughs, this report also provides recommendations for city
and state policymakers to ensure that New Yorkers with disabilities
are included in any effort to cultivate a lasting economic recovery.
New Yorkers with disabilities
have experienced major employment losses or reduced hours, and few jobs
have returned.
- 75 percent or more
of the Institute for Career Development clients who had full-time
employment either lost their jobs or had their hours reduced. At least
400 clients lost their primary source of income.
- 70 percent of JCC Manhattans
Center for Special Needs community members were laid off, and around
20 percent were furloughed.
- About 1,500 clients
of the Center for Independence of the Disabled NY (CIDNY), which provides
services and education to help people with disabilities direct their
own lives, lost their primary source of income.
- Roughly 30 percent of
the 100 people in Goodwills supported employment program lost
their jobs.
- 55 percent of clients
enrolled in Bronx Independent Living Services COVID-19 relief
program have either lost their jobs or had their hours reduced.
- About 25 percent of
NY Foundlings clients with disabilities who were employed experienced
a reduction in hours.
Of the 85 percent of Job Path NYCs clients who were furloughed
in the beginning of the pandemic, about 60 to 70 percent are still
furloughed.
- For many of the
people we hire, this has been their first job, says Jean-Emmanuel
Shein, director of global corporate social responsibility at UNIQLO,
which has a corporate policy of hiring people with disabilities in
all retail locations. If theyre let go, its not
as if theyre just starting again from square one theyre
even further behind. For some, it may end up feeling like the job
market isnt for them, making it even harder to get back up and
fight again.
Direct service providers
report losing 20 to 66 percent of expected revenues in 2020 due to canceled
fundraising events and a major reduction in government contracts, while
incurring millions of dollars in unanticipated costs due to the pandemic.
- Institute for Career
Development predicts contract revenue will decrease by two-thirds,
and that total revenue declined by 40 percent since the previous fiscal
year. The organization also spent about $50,000 to $75,000 to purchase
computers, tablets, hotspots, and Zoom licenses for clients and staff.
The organizations employment program is seeing just 40 percent
of their typical referral rate.
- Job Path NYC reports
that fundraising revenue has decreased in 2020 by 30 to 40 percent.
- VISIONS canceled four
events that, in total, usually raise $175,000 to $200,000. It also
lost $500,000 on a state contract for residential vocational rehabilitation
center programs that were canceled and another $500,000 in lost or
delayed revenue for in-home and community training that was canceled
from March to June. The provider estimates unanticipated labor, technology,
PPE, cleaning and other costs between March and December to amount
to $250,000 to $300,000.
- Community Resources
Staten Island, an organization providing comprehensive services to
people with intellectual and developmental disabilities, reports losing
about 70 percent, or around $83,250 to $88,250, in expected revenue
due to canceled fundraisers. None of the funding proposals the provider
sent to private foundations have been successful.
- NY Foundling expects
to lose $120,000 due to canceled fundraising events. The organization
estimates a decline in revenue of $480,000 due to vacancies in their
residential program. It also projects $700,000 in costs for PPE and
cleaning equipment.
Bronx Independent Living Services, which provides people with disabilities
access to education, job training, and other resources, predicts that
it will end 2020 with as much as a 20 percent loss in revenue. They
have not received about 25 percent of their grants and $170,000 of
their advances for the new fiscal year.
- Barrier Free Living,
which provides comprehensive support services for survivors of domestic
violence with disabilities, has been owed almost $180,000 in reimbursements
from the state for over five months.
- CIDNY incurred $60,000
to $75,000 in unexpected technology costs in order to set up remote
services and programming.
Access to resources
such as technology and digital skills training, food, and housing continues
to present challenges for New Yorkers with disabilities.
- Community Resources
Staten Island has only been able to reach 60 percent of the clients
enrolled in its services since the pandemic hit, often because clients
lack technology at home or need one-on-one in-person assistance to
use it.
- About half of the older
adults 55 years or older that VISIONS serves do not have computers
or Internet at home and have been unable to access remote or virtual
services.
- The Institute for Career
Development reports that fully 95 percent of the organizations
clients come from low-income households and lack digital fluency and/or
access to broadband and Internet-connected devices at home. Now that
the pandemic has forced the organization to move to remote learning,
student retention has been a struggle. When we went online in
April, 25 percent of our active students in training dropped out because
of their fear or lack of comfort with tech and learning online,
says CEO Susan Scheer.
- The Institute for Career
Development also gave out more than $25,000 in direct cash assistance
to about 70 people, and the vast majority used that money for food.
- More than 100 families
served by Bronx Independent Living Services reported challenges accessing
enough food. The organization either buys food for them, helps them
enroll in the citys free food programs, or refers them to partner
organizations.
The pandemic has forced
direct service providers to cancel or scale back programming, limiting
the number of New Yorkers with disabilities who can access these vital
supports.
- Community Resources
Staten Island has been forced to cancel all of its supported employment
programming.
- The Institute for Career
Development suspended or postponed certain services until August,
when job training and career assessments that must be delivered in-person
resumed at no more than 50 percent capacity.
- In mid-March, 100 percent
of VISIONS programming was canceled, and staff only had check-in calls
with clients for urgent needs like food.
- By mid-April, the organization
restarted with 50 remote classes for older adults, but their training
programs for all ages remained canceled until July. VISIONS was only
able to reach 200 of its 800 residential services clients in person,
mostly due to their fears about virus exposure. VISIONS projected
serving 400 fewer blind people and their caregivers in 2020.
- Over 25 percent of NY
Foundlings community members are no longer receiving regular
programming due to the disruption caused by COVID.
- Barrier Free Livings
non-residential clientele dropped to about 80 individuals at the height
of the pandemic, down from over 150. By mid-October clientele was
still 25 percent below normal. Many of the people we work with
were sheltered with their abuser, which made contact impossible,
says Paul Feuerstein, the organizations president and CEO.
- Bronx Independent Living
Services lost roughly 40 percent of their clientele due to funding
and staff cuts. It expects that the total number of its community
members will decrease from 2,000 to 1,200 to 1,300 for 2020.
Seizing the opportunity
to include New Yorkers with disabilities in the citys economic
recovery
The mass shift to remote
work and virtual training underway right now presents an enormous opportunity
to fundamentally expand access to competitive employment for New Yorkers
with disabilities and help spur a far more inclusive recovery. Julie
Christensen of APSE says the normalization of working from home has
the potential to significantly expand work opportunities for people
with disabilities.
This whole map migration
to virtual and remote communication has opened up a whole new way of
thinking about job opportunities for people with disabilities that have
been denied previously, says Christiansen.
In the short term, direct
service providers see the potential to cultivate new employment opportunities
for people with disabilities focused on contributing to New Yorks
recovery efforts, although these jobs carry health risks. For instance,
providers including ICDs Susan Scheer cite the growth in custodial
jobs fueled by the pandemic response, and training programs aligned
with these jobs already exist. One bright spot has been opportunities
for cleaning work, including on the citys subways, says
Scheer.
Providers have also seized
new employment opportunities in contract tracing, local PPE manufacturing,
and online retail fulfillment. We have had success in placing
blind people in jobs that are specific to the pandemic such as contact
tracers and warehouse positions for companies like Amazon, says
Nancy Miller, executive director and CEO of VISIONS. There are
some factory jobs that manufacture PPE that have actually expanded job
opportunities for blind workers throughout New York State.
But to reconnect New Yorkers
with disabilities to the workforce and realize the larger opportunity
that the shift to remote work and training provides New York
policymakers, philanthropy, and employers will need to take action now.
New Yorkers with disabilities are experiencing unprecedented job losses
and unending furloughs. Many of the community-based organizations serving
New Yorkers with disabilities are facing fiscal crisis, including major
disruptions and funding losses for programs that support employment.
Too many individuals with disabilities are on the wrong side of the
digital divide. Relatively few job training, upskilling, and workforce
development programs are accessible to New Yorkers with disabilities.
And employers are understandably more focused on salvaging their businesses
rather than thinking creatively about how a more inclusive and accessible
workplace can help. But by acting now, New York can take advantage of
the unique opportunities that this current moment presents and help
ensure that New Yorkers with disabilities are no longer among the first
to suffer the economic impact of a crisis and the last to benefit from
a rebound.
What New York City and
State can do now to support an inclusive recovery for people with disabilities
Existing city programs
to support employment for people with disabilities have provided valuable
assistance both before and amid the COVID-19 crisis. For example, NYC:
ATWORK, an employment program run by the Mayor's Office for People with
Disabilities (MOPD), has continued to help connect job-seeking New Yorkers
with disabilities to employment in the public and private sectors, and
has moved its engagement process online. But ensuring an economic recovery
that is inclusive to New Yorkers with disabilities will require bold
new commitments and investments at both the city and state level.
Set clear goals to hire
and retain New Yorkers with disabilities and develop new incentives
to encourage rehiring. To ensure that New Yorkers with disabilities
are included in the citys difficult economic recovery, policymakers
should establish statewide goals for hiring and retaining New Yorkers
with disabilities including hiring for COVID-response jobs like
contract tracers, cleaners, and testing site workers. Policymakers should
consider a package of incentives designed to encourage more businesses
to rehire New Yorkers with disabilities, including tax credits, temporary
wage subsidies, and partial insurance coverage. City and state government
can continue to expand opportunities by working with MOPD and the Department
of Citywide Administrative Services (NYCDCAS) to hire even more New
Yorkers with disabilities through the 55-a program, specifically taking
advantage of roles that now accommodate remote work. "I think that
the key is really employment," says Brett Eisenberg, executive
director of Bronx Independent Living Services. "I think that the
government can hopefully lead by example, whether it's the state or
the federal level, and hire more people with disabilities that can work
remotely and also create programs that encourage that."
Invest in skills-building
infrastructure accessible to New Yorkers with disabilities, including
job and technology training programs that can unlock remote work opportunities.
As opportunities for remote employment grow, New York should ensure
that organizations focused on preparing New Yorkers with disabilities
for jobs have the resources needed to succeed. Equally important, New
York should help high quality job training and skills-building organizations
that serve the general population to build accessibility into their
programs and services. City and state government should create an emergency
loan program to shore up the finances of training providers and invest
in scaling up training programs for remote work while expanding access
to assistive technology for specific disabilities. The city can build
on the success of NYC: ATWORK's AbilITy Cisco Academy at ICD, the first
fully-accessible computer networking certification program for New Yorkers
with disabilities, which is now on its fourth 16-person cohort. City
and state leaders should set a goal of developing another 50 accessible
training courses in partnership with workforce organizations,
employers, and philanthropy in high-growth fields like tech,
healthcare, and the creative economy, ensuring that these pathways are
open as the economy begins to recover.
Eliminate the benefits
cliff disincentivizing employment opportunities. New Yorkers with
disabilities are often forced to choose between keeping their public
benefits and holding a steady job, which disincentivizes work even in
better economic times. Most New Yorkers with disabilities rely on Supplemental
Security Income (SSI) of roughly $10,000 a year, along with Medicaid.
Though these benefits are far from a living wage, gaining full-time
employment would mean losing this crucial safety net a dangerous
trade-off at a time when employment feels highly insecure. New York
should eliminate asset limits for programs it controls, advocate for
the federal government to do the same, and make it easier for workers
with disabilities to access flexible programs like the Medicaid Buy-in
Plan. You should not have to choose between your health and employment,
says Scheer of ICD. Allowing people the maximum flexibility to
work and still maintain health insurance coverage is critical.
Notes
1. Office of the New York
State Comptroller. Employment Trends for People with Disabilities in
New York City, October 2019. Retrieved from https://www.osc.state.ny.us/files/reports/osdc/pdf/report-7-2020.pdf
2. Ibid.
3. New York Disability Advocates, New York. NYDA Financial Survey through
5/31/20.
4. Association of People Supporting Employment First. Impact of COVID-19
on Disability Employment Services and Outcomes. Retrieved from https://apse.org/covid-19-impact-survey/
5. Ibid.
Funding for this
report was generously provided by Citi and Kessler Foundation. General
operating support for the Center for an Urban Future has been provided
by The Clark Foundation and the Bernard F. and Alva B. Gimbel Foundation.
Tags: economic opportunity human services
disabilities job training
Photo by Sigmund on Unsplash
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