Strong labor market for people with disabilities - here to stay?

Kessler Foundation

East Hanover, NJ – November 4, 2022 – Employment remains at historic highs for people with disabilities, but whether these gains will persist is a topic of today's National Trends in Disability Employment – Monthly Update (nTIDE), issued by Kessler Foundation and the University of New Hampshire's Institute on Disability (UNH-IOD). The COVID-19 pandemic prompted a marked increase in flexible business practices that benefit workers with disabilities, and a new survey indicates that many of these changes are likely to be here to stay.

Month-to-Month nTIDE Numbers (comparing September 2022 to October 2022)

Based on data from the U.S. Bureau of Labor Statistics (BLS) Jobs Report released today, the employment-to-population ratio for people with disabilities (ages 16-64) increased from 34.9 percent in September to 35.5 percent in October (up 1.7 percent or 0.6 percentage points). For people without disabilities (ages 16-64), the employment-to-population ratio remained the same at 74.6 percent in September and October. The employment-to-population ratio, a key indicator, reflects the percentage of people who are working relative to the total population (the number of people working divided by the number of people in the total population multiplied by 100).

"The employment-to-population ratio for people with disabilities not only increased but remains steadily above historic highs. This contrasts with the lag we have seen for their counterparts without disabilities, whose ratio is just reaching its pre-pandemic levels," said John O'Neill, PhD, director of the Center for Employment and Disability Research at Kessler Foundation. "Efforts to combat inflation continue, however, with this week's major rate hike the latest in a series by the Federal Reserve," he cautioned. "While these moves may dampen the future labor market, there are other positive factors for people with disabilities who are striving to work."

Findings were similar for October's labor force participation rate. For people with disabilities (ages 16-64), the labor force participation rate increased from 38.0 percent in September to 38.7 percent in October (up 1.8 percent or 0.7 percentage points). For people without disabilities (ages 16-64), the labor force participation rate remained the same, 77.1 percent in September and October. The labor force participation rate is the percentage of the population that is working, not working, and on temporary layoff, or not working and actively looking for work.

"The employment gains we're seeing among people with disabilities are very encouraging," remarked Andrew Houtenville, PhD, professor of economics and the research director of the UNH-IOD. "These may lead to long-term improvements in the workplace integration of people with disabilities," explained Dr. Houtenville. "From our latest employment and disability survey, we've seen that supervisors indicate these positive changes are here to stay."

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