Unemployment Statistics Miss Informal Labor

Unemployment Statistics Miss Informal Labor

“Reported high rates of joblessness among black men with little education obscured the fact that many of these men did regularly work, if not in the formal labor market,” writes Matthew Desmond in Evicted. Labor force participation rates are important because they inform national policies and discussions regarding the economy, society, and how we understand ourselves relative to others. What Desmond’s quote shows is that national labor force participation rates don’t capture a full picture of work, and as a result, our policies, discussions, and interpretations of the world of work may be inaccurate.
 
 
Desmond’s focus is on the way that landlords are able to access poor tenants as a form of free – or sometimes low paid – unregulated labor. Poor tenants, especially in the reporting from Desmond poor black men, are available for hire in exchange for breaks on rent or quick cash. Payments are not often up to minimum wage standards and requirements, and the work can range from relatively unimportant fence painting to crucial code compliance updates for landlords’ properties. A tenant may be hired to help paint a hand rail or may be hired to repair a roof, and when their work is under the table, then their safety can be at jeopardy. Nevertheless, as Desmond shows, informal labor is common among unemployed men.
 
 
Our welfare and assistance policies are designed so that able bodied young men must meet certain requirements before they can receive any benefits or aid. Many policies require work, community service, or job search activities before any benefits will kick in. Informal labor doesn’t count in this system, so men cannot be seen as deserving of aid if they only find work in the informal labor sector. Informal labor may help poor men get by, but it doesn’t help them get ahead.
 
 
The fact that many poor men find work within informal labor markets should tell us that these men can function within society and can find productive ways to earn money. It tells us that these men have been shut out by various structures and systems that don’t permit them to work in formal economies. When landlords come around and help get these men to a job then they do work, at least enough to get by. They don’t all do a great job once they are working, as Desmond shows in his book, but with a little help they can get started. I Think this is an important point to consider. Often the arrangements are not fair and  the work is not great, but informal labor does take place, and can tell us a lot about the people whose work is not counted elsewhere and the types of systems that could be built to reach them.