Employment Up for People With Disabilities But Gaps Remain

Employment among people with disabilities has improved meaningfully over the past several years, driven by remote work opportunities, a tight labor market, and increased employer awareness. But significant gaps remain — and the financial implications of those gaps are central to long-term disability planning.

The Data

According to the Bureau of Labor Statistics, the labor force participation rate among people with disabilities has risen in recent years, reaching levels not seen in prior decades. The employment-to-population ratio for workers with disabilities has similarly improved. However, people with disabilities still face a participation rate roughly half that of people without disabilities, and average wages remain lower when employed.

What Is Driving Improvement

• Remote work: The shift to remote and hybrid work reduced commuting barriers and allowed more flexible schedules for individuals managing health conditions or appointments.
• Supported employment programs: Vocational rehabilitation and supported employment services have expanded in many states.
• Employer initiatives: Large employers have increasingly established disability inclusion programs and partnerships with disability-focused staffing organizations.

The Persistent Gaps

• Wage gaps persist even in comparable roles
• People with disabilities are more likely to work part-time, limiting access to employer-sponsored benefits
• The SSDI benefits cliff — where earning above SGA can trigger loss of health coverage — continues to discourage work

The Financial Planning Angle

Employment decisions for SSDI or SSI recipients require careful analysis. Work Incentive programs like Ticket to Work, Trial Work Period, and the ABLE-to-Work provision can provide a runway for earning income without immediately losing benefits. Understanding the rules before starting work — rather than after — is critical.