Skip Navigation
acfbanner  
ACF
Department of Health and Human Services 		  
		  Administration for Children and Families
          
ACF Home   |   Services   |   Working with ACF   |   Policy/Planning   |   About ACF   |   ACF News   |   HHS Home

  Questions?  |  Privacy  |  Site Index  |  Contact Us  |  Download Reader™Download Reader  |  Print Print      

 

Office of Refugee Resettlement   Advanced
Search


Annual ORR Reports to Congress - 1999

Economic Adjustment

Overview

The Refugee Act of 1980, and the Refugee Assistance amendments enacted in 1982 and 1986, stress the achievement of refugee employment and economic self-sufficiency as soon as possible after their arrival in the United States. This involves a balance among three elements: the employment potential of refugees, including their education, skills, English language competence, and health; the needs that they as individuals and members of families have for financial resources, whether for food, housing, or child-rearing; and the economic environment in which they settle, including the availability of jobs, housing, and other local resources. Past refugee surveys have found that the economic adjustment of refugees to the U.S. has been a successful and generally rapid process. During 1999, the process of refugee economic adjustment appears to have accelerated resulting in significantly higher employment and lower public service utilization, as discussed below.

Current Employment Status of Refugees

In 1999, ORR completed its 28th survey of a national sample of refugees selected from the population of all refugees who arrived between May 1, 1994, through April 30, 1999. Along with basic biographical information, the survey collected data on (1) education, (2) English language training, (3) job training, and (4) labor force participation of each adult member of the household. The survey also collected family housing, income, and welfare utilization data.

The 1999 survey indicates that refugees found employment at a higher rate than the general population of the U.S., and that they improve their economic circumstances over time. Employment rates have gone up, and unemployment rates as well as welfare utilization have gone down five consecutive years in a row. To evaluate the economic progress of refugees, ORR used three common measures of employment effort: the employment-to-population ratio (or EPR), the labor force participation rate, and the unemployment rate.

Table 1 presents the EPR in October 1999 for refugees 16 and over in the five-year population. The survey found that the overall EPR for all refugees was 67 percent (72 percent for males and 61 percent for females). By contrast, the EPR for the U.S. population was only 64 percent in 1999. In addition, refugee employment appears to increase with each year of residence in the U.S. While the overall EPR for the 1999 arrivals was only 51 percent, the EPR of refugees who had arrived in previous years, i.e., 1995, reached 71 percent.

From the 1999 data, ORR also calculated the labor force participation rate for refugees 16 and over in the five-year population (refer to Table 1). This rate is closely related to the EPR, except it includes individuals looking for work as well as

TABLE 1 - Employment Status of Refugees by Year of Arrival and Sex

  Employment Rate (EPR) Labor Participation Rate Unemployment Rate
Year of
Arrival
All
Male
Female
All
Male
Female
All
Male
Female
1999 50.9%
63.5%
37.1%
54.4%
67.2%
40.3%
6.6%
5.7%
8.3%
1998
63.2
68.6
57.3
66.8
71.6
61.5
5.5
4.4
6.9
1997
67.7
76.3
59.7
70.2
78.1
62.6
3.6
2.4
4.5
1996
67.8
71.8
63.6
69.3
74.3
64.2
2.3
3.3
1.1
1995
70.9
74.6
67.1
72.0
75.7
68.1
1.4
1.4
1.4
1994
66.8
72.0
61.5
69.0
74.0
63.9
3.2
2.8
3.6

Total Sample

66.8
72.3
61.1
68.9
74.4
63.3
3.1
2.9
3.4
U.S.Rates
64.3
71.6
57.4
67.1
74.7
60.0

4.2

4.1
4.3

Note: As of October 1999. Not seasonally adjusted. Data refer to refugees 16 and over in the five-year sample population consisting of Amerasians, Entrants, and Refugees of all nationalities who arrived in the years 1994-1999. U.S. rates are for 1999.

Those currently employed. In October 1999, the overall labor force participation rate for the five-year refugee population was 69 percent (74 percent for males and 63 percent for females). Like the EPR, the labor force participation rate of refugees is higher than that of the U.S. population (67 percent in 1999). The overall labor force participation rate for the 1999 arrivals was 54 percent. It reached 72 percent for refugees who arrived in 1995.

A comparison of employment measures for each year, i.e., 1994 through 1999 (refer to Table 1) indicates that for 1999 arrivals, the EPR was 51 percent and the labor force participation rate was 54 percent, a difference of three percent. For FY 1994 arrivals, the difference between the EPR and labor force participation dropped one percent. For all survey respondents, the difference between the EPR and labor force participation rate diminishes with time. Similarly, the unemployment rate drops with time. The survey found that the

TABLE 2 - Employment Status of Refugees by Survey Year Administration and Sex

   Employment Rate (EPR) Labor Participation Rate Unemployment Rate
Year Survey
Administered
All
Male
Female
All
Male
Female
All
Male
Female
1999 Survey
66.8
72.3
61.1
68.9
74.4
63.3
3.1
2.9
3.4
U.S. Rates
64.3
71.6
57.4
67.1
74.7
60.0
4.2
4.1
4.3
 
1998 Survey
56.0
62.8
49.3
59.1
66.6
52.8
5.2
4.7
5.7
U.S. Rates
64.1
71.6
57.1
67.1
74.9
59.8
4.5
4.4
4.6
 
1997 Survey
53.9
62.8
45.1
58.1
66.8
49.5
7.3
6.0
8.9
U.S. Rates
63.8
71.3
56.8
67.1
75.0
59.8
4.9
4.9
5.0
 
1996 Survey
51.0
58.6
43.4
57.4
65.4
49.4
11.2
10.4
12.2
U.S. Rates
63.2
70.9
56.0
66.8
74.9
59.3
5.4
5.4
5.4
 
1995 Survey
42.3
49.3
35.1
49.8
57.3
42.2
15.1
13.9
16.8
U.S. Rates
63.2
71.1
56.1
66.7
74.7
59.3
5.2
4.9
5.5

Note: As of October 1999, October 1998, October 1997, October 1996, and October 1995. Not seasonally adjusted. Data refer to refugees 16 and over in the five-year sample population consisting of Amerasians, Entrants, and Refugees of all nationalities who were interviewed as a part of the 1999, 1998, 1997, 1996, and 1995 surveys. U.S. rates are for 1999, 1998, 1997, 1996, and 1995.

unemployment rate for all refugees was three percent (the same for both males and females). The unemployment rate was seven percent for 1999 arrivals and three percent for FY 1994 arrivals. The overall unemployment rate for refugees was one percentage point lower than the unemployment rate for the U.S. (4.2 percent). A comparison of employment measures across the past five surveys demonstrates significant gains in refugee employment. The EPR reported in the FY 1999 survey is 11, 13, 16, and 25 percentage points higher than the EPR reported in the 1998, 1997, 1996, and 1995 surveys, respectively. Additional comparisons between the FY 1999 and FY 1995 surveys reveals that the labor force participation rate went up 19 percentage points and the unemployment rate dropped 12 percentage points (refer to Table 2).

By disaggregating the data, the EPR, the labor force participation rate, and the unemployment rate provide additional insights into the economic adjustment of refugees. Table 3 reveals significant differences between the employment rates of the seven refugee groups formed from the survey respondents. The EPR

TABLE 3 - Employment Status of Selected Refugee Groups by Sex

Employment Measure
Africa Latin America Middle East East Europe Former Soviet Union Vietnam Other S.E Asia All
Employment-to- Population Ratio (EPR
59.7%
80.7%
70.8%
74.2%
50.5%
74.3%
38.0%
66.8%
-Male
59.5%
86.0%
72.9%
81.8%
59.8%
74.0%
45.7%
72.3%
-Female
59.9%
73.7%
67.6%
67.0%
42.8%
74.7%
29.8%
61.1%
 
Worked at any point since arrival
63.7
82.0
73.6
74.9
54.4
74.5
41.2
68.7
-Male
64.2
87.2
76.0
82.3
63.5
74.3
48.7
74.1
-Female
63.1
75.3
69.9
67.8
46.9
74.7
33.4
63.1
 
Labor Force Participation Race
60.3
81.7
73.6
75.4
56.0
74.4
41.5
68.9
-Male
61.1
86.6
76.7
83.1
65.4
74.0
51.4
74.4
-Female
59.9
75.1
68.9
68.4
48.0
74.6
31.9
63.3
 
Unemployment Rate
1.1
1.3
3.5
1.7
9.7
0.0
8.5
3.1
-Male
2.2
1.5
4.8
1.5
8.6
0.0
10.8
2.9
-Female
0.0
2.0
1.4
2.0
11.0
0.0
4.5
3.4

Note: As of October 1999. Not seasonally adjusted. Data refer to refugees 16 and over in the five-year sample population consisting of Amerasians, Entrants, and Refugees of all nationalities who arrived in the years 1994-1999.

for the seven refugee groups ranged from a high of 81 percent for Latin America and 74 percent for both Eastern Europe and Vietnam (exceeding the EPR for the U.S. population), to a low of 38 percent for Other Southeast Asia and 51 percent for the former Soviet Union. Refugees from Eastern Europe, Latin America, and Vietnam continue to sustain the highest EPR whereas refugees from, Africa, the former Soviet Union, and Southeast Asia have endured the lowest EPR across the most recent surveys. The labor force participation rate followed the same pattern as the EPR. The unemployment rate was highest for refugees from the former Soviet Union and lowest for refugees from Vietnam. It is interesting to note that the largest disparity between the EPR and labor force participation rate was for the former Soviet Union (consistent with their unemployment rate). Table 3 also presents the proportion of refugees who have ever held employment since arrival in the U.S. Overall, the proportion of refugees currently working is about 97 percent of the refugees who have ever worked (ranging from a low of 93 percent for the former Soviet Union and Other Southeast Asia to a high of 100 percent for Vietnam). From the 1998, 1997, 1996, and 1995 surveys, the proportion of refugees who were currently working to those that had ever worked was 95, 95, 93, and 93 percent, respectively.

Further disaggregation of the data by sex provides another vantage point relative to the employment status of refugees (refer to Table 3). Overall, the EPR for males was 72 percent versus 61 percent for females. The biggest disparity within refugee groups was for the former Soviet Union and Other Southeast Asia categories. (The disparity within Latin America is not considered as relevant owing to the fact that the employment measures for both males and females are quite high.) For the former Soviet Union, the EPR as well as the labor force participation rate for males was 17 percent higher than for females, and the unemployment rate was nine percent for males versus 11 percent for females. For Other Southeast Asia, the EPR for males was 16 percent higher than for females, the labor force participation rate for males was 20 percent higher than for females, and the unemployment rate was 11 percent for males versus five percent for females.

The survey also asked refugees age 16 and over why they were not looking for employment. Attending school accounted for the largest proportion (36 percent) with an associated median age of 18. Age accounted for the second largest proportion (17 percent) with an associated median age of 70. Poor health or handicap accounted for another 10 percent with an associated age of 57. Child care or other family responsibilities accounted for another eight percent with an associated median age of 31. Furthermore, for those citing child care or other family responsibilities, 86 percent were under the age of 40 and 93 percent were female. Limited English accounted for another three percent with an associated median age of 49. However, a combination of Limited English and other answers (most often associated with poor health and age) accounted for an additional 20 percent. Finally, a mixture of still other answers accounted for the balance.

Factors Affecting Employment Status

Achieving economic self-sufficiency is based on the employment prospects of adult refugees, which hinges on a mixture of refugee skills, family size and composition (e.g., number of dependents to support), job opportunities, and the resources available in the communities in which refugees resettle. The occupational and educational skills that refugees bring with them to the United States also influence their prospects for self-sufficiency.

The average number of years of education for all arrivals was approximately 11 (refer to Table 4). The level of education prior to arrival has risen sharply over the past decade, most probably as a result of a significant increase in the proportion of refugees from Eastern Europe (particularly, the former Yugoslavia) and the former Soviet Union. The 1999 survey revealed a pronounced disparity between the educational backgrounds among the seven refugee groups formed from the survey respondents. The average years of education was highest for the former Soviet Union (12 years) and lowest for Other Southeast Asia (three years). By combining high school, technical school, and university degrees, again, the former Soviet Union (over 77 percent) ranks highest for education while Other Southeast Asia (under five percent) ranks the lowest.

Refugees from Africa (30 percent) and Other Southeast Asia (64 percent) showed the largest proportion for no formal education before arriving in the U.S. However they rank high for attending high school for a degree during the past 12 months. Africa and the Middle East show the highest proportion for attempting to earn an Associate Degree and a Bachelor's Degree followed by the former Soviet Union. It should be noted that even though the survey asks about years of schooling and the highest degree or certificate obtained prior to coming to the U.S., the correspondence between years of schooling and degrees or certifications among different countries is not necessarily the same. Consequently, some degree of caution is necessary when interpreting education statistics.

At the time of arrival, for refugees 16 years of age and over in the five-year population, 69 percent reportedly spoke no English (refer to Table 4). By the time of the interview, only 12 percent spoke no English. At the time of arrival, 82 percent of refugees from Other Southeast Asia spoke no English followed by Eastern Europe and the former Soviet Union (both 75 percent), Latin America (72 percent), followed by the Vietnam (68 percent), the Middle East (47 percent) and Africa (41 percent). By the time of the interview, only 12 percent of refugees from Other Southeast Asia still spoke no English behind the former Soviet Union (18 percent) and Eastern Europe (13 percent). All other refugee groups had dropped below 12 percent. By the time of the interview, refugees from the former Soviet Union (44 percent) had the smallest percentage for speaking English well or fluently followed by Latin

TABLE 4 - Educational and English Proficiency Characteristics of Selected Refugee Groups

Education and Language Proficiency
Africa
Latin
America
Middle
East
Eastern
Europe
Former
Soviet
Union
Vietnam
Other
S.E.
Asia
All
Average Years of Education before U.S. 7.5 11.0 11.3 10.9 11.8 10.1 3.1 10.6
Highest Degree before U.S.
None
30.2%

10.3%

12.7%

6.8%

2.2% 19.6% 64.1% 12.8
Primary School
33.9

18.7

21.8

21.0

12.2 17.3 24.9 18.3
Secondary School
19.7

36.9

32.6

39.6

30.5
53.7 3.1 37.5
Technical School
1.1

7.4

3.4

13.2

22.9
0.1 1.4 9.9
University Degree
6.6

21.2

17.5

11.7

23.8
5.1 0.0 1.4.5
Medical Degree
0.0

1.3

1.1

0.9

3.4
0.1 0.0 1.4

Attended School/University (in U.S. during past 12 months)

40.3

8.7

22.2

14.9

16.4
18.1 34.3 17.7

Attended School/University (in U.S. during past 12 months)

32.6
6.4

20.5

12.8

15.8 16.7 27.6 15.7

High School

23.2

4.3

10.9

7.5

6.4 10.0 17.3 8.8

Associate Degree

2.1

0.3

2.7

1.1

2.1 0.7 0.0 1.3

Bachelor's Degree

6.9

1.4

5.7

3.4

5.1 5.7 6.3 4.5

Master's/Doctorate

0.0

0.2

0.0

0.3

1.4 0.0 0.0 0.5

Professional Degree

0.0

0.0

0.0

0.1

0.5 0.0 0.0 0.2

Other

0.0

0.0

0.0

0.1

0.1 0.0 0.9 0.1

Degree Received

0.0

0.6

0.4

0.1

0.5
0.0 0.9 0.3
At Time of Arrival

Percent Speaking no English

41.2

71.8

47.3

74.6

74.6

68.0

81.5

69.1

Percent Not Speaking English Well

42.5

25.0

32.5

18.3

18.6

28.9

14.5

24.3

Percent Speaking Speaking English Well or Fluently

15.5

2.5

13.9

5.8

5.8

1.5

1.6

5.1

 
Percent Speaking no English
5.5
11.0
5.8
13.4
17.5
6.9
12.3
11.5
Percent Not Speaking English Well
27.8
38.6
16.9
33.8
38.9
18.2
37.2
30.8
Percent Speaking Speaking English Well or Fluently
66.8
50.4
74.2
52.6
43.7
74.2
50.4
57.2

America and Other Southeast Asia (both 50 percent).

The relationship between English language proficiency and economic self-sufficiency can be gauged by comparing the ability to speak English with the associated EPR (refer to Table 5). Fifty-seven percent of all refugees indicated that they spoke English well or fluently (at the time of the survey). Another 31 percent indicated that they did not speak English well, while 12 percent claimed they spoke no English at all. Those speaking no English had the lowest EPR (26 percent) versus those speaking English well or fluently who had a much higher EPR (77 percent). The difference in EPR between these two groups

TABLE 5 - English Proficiency and Associated EPR by Year of Arrival

Year of Arrival
Percent Speaking
Not English (EPR)
Percent No Speaking Well (EPR) Percent Speaking English
Well
or Fluently (EPR)
At Time of Arrival

1999

48.0 (43.7)
45.0 (62.4)
5.7 (31.8)

1998

71.4 (61.5)
23.6 (68.0)
4.8 (64.6)

1997

66.4 (61.5)
23.6 (78.3)
8.2 (88.0)

1996

65.0 (61.6)
25.5 (81.0)
6.2 (82.4)

1995

72.8 (66.7)
23.4 (85.1)
2.8 (80.1)

1994

74.3 (62.9)
19.5 (81.1)
4.8 (82.0)

Total

69.1 (62.6)
24.3 (77.8)
5.1 (77.7)

Sample

At Time of Survey

1999

21.6 (40.8)
44.5 (46.6)
33.9 (63.0)

1998

15.4 (30.5)
45.7 (69.7)
38.9 (68.6)

1997

14.6 (35.0)
33.6 (66.1)
50.9 (78.3)

1996

10.7 (17.0)
29.2 (68.0)
60.2 (76.6)

1995

9.3 (22.4)
26.0 (62.0)
63.8 (81.3)

1994

6.6 ( 9.0)
19.7 (45.4)
73.7 (77.7)

Total

11.5 (26.2)
30.8 (62.6)
57.2 (77.1)

Sample


Note: As of October 1999. Not seasonally adjusted. Data refer to refugees 16 and over in the five-year sample population consisting of Amerasians, Entrants, and Refugees of all nationalities who arrived in the years 1994-1999. These figures refer to self-reported characteristics of refugees.

is 51 percent. Although many refugees improve their English language proficiency over time, it appears that those who do not are the least likely to be employed. Of the 14 percent of the survey respondents who spoke no English at the time of the survey, the median age was 57. Females comprised 56 percent and males comprised 44 percent. The majority came from the former Soviet Union (41 percent) followed by Eastern Europe (20 percent), Latin America and Vietnam (both 15 percent).

During the past 12 months, 19 percent of all refugees attended English Language Training (ELT) outside of high school. Refugees from the former Soviet Union (27 percent) and Eastern Europe (24 percent) followed by the Middle East (22 percent) and Latin America (19 percent) have attended ELT outside of high school the most, whereas Vietnam (eight percent), Other Southeast Asia (13 percent) and Africa (16 percent) have attended ELT the least (refer to Table 6). For the same period, the proportion of refugees who have attended job-training classes lags far behind ELT. Overall, only five percent of all survey respondents had attended job training (refer to Table 6). Refugees from the former Soviet Union had attended the greatest amount versus refugees from Vietnam and Other Southeast Asia who had attended the least. Across all refugee groups that attended job training, 58 percent indicated they spoke English well or fluently at the time of the survey, while 38

TABLE 6 - Service Utilization by Selected Refugee Groups and for Year of Arrival

Type of Service Utilization
Africa Latin America Middle East East Europe Former Soviet Union Vietnam Other S.E Asia All

ELT since arrival Inside High School (during past 12 months)

23.5%

4.4%

8.7%

5.4%

2.1%

9.5%

23.8%

7.2%

ELT since arrival Outside of High School (during past 12 months)

15.5

19.0

21.7

23.6

27.3

8.4

12.9

19.2

Job training since arrival (during past 12 months)

3.2

2.8

2.5

5.8

10.3

0.2

0.7

4.6

Currently attending ELT Inside High School

23.5

4.4

8.7

5.4

2.1

9.5

23.8

7.2

Currently attending ELT

13.8

7.5

13.9

11.7

16.4

8.0

12.2

11.6

 

Type of Service Utilization by Year of Arrival 1999

 

1999

1998

1997

1996

1995

1994

All

ELT since arrival Inside High School (during past 12 months)

 

9.2%

7.8%

5.1%

8.1%

7.0%

7.5%

7.2%

ELT since arrival Outside of High School (during past 12 months)

 

33.8

33.6

23.1

15.4

14.4

9.0

19.2

Job training since arrival (during past 12 months)

 
1.4

6.3

8.3

5.3

3.2

2.3

4.6

Currently attending ELT Inside High School

 

9.2

7.8

5.1

8.1

7.0

7.5

7.2

Currently attending ELT Outside of High School

 

24.8

19.6

10.7

11.1

8.0

7.1

11.6


Note: Data refer to refugees 16 and over in the five-year sample population consisting of Amerasians, Entrants, and Refugees of all nationalities who arrived in the years 1994-1999. In order that English language training (ELT) not be confused with Englishhighschoolinstruction, statistics for both populations are given.

percent indicated that they did not speak English well and four percent indicated that they did not speak English at all.

[ Next ]