This insect has been skeletonizing rose leaves in the Kansas City area. This is not a caterpillar but is the larva of a sawfly. Close examination of this small (½ inch) larva will reveal very fine, hairlike spines in clusters.
Young larvae will remove the green layer of a leaf leaving behind a clear material. As the larvae mature, they make holes in the leaf and eventually may consume all of the leaf but the major veins.
Since these insects are not caterpillars (larvae of moths or butterflies), BT, found in Dipel and Thuricide will not be an effective treatment. However, a strong jet of water will dislodge the slugs and make it difficult for them to return to the plant. Other effective treatments include insecticidal soap, horticultural oils, spinosad (Fertilome Borer Bagworm, Leafminer and Tent Caterpillar Spray or Captain Jack’s Deadbug Brew) and permethrin (various trade names).