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Economic Update: Employment Trends For People With Disabilities

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Each month since the COVID-19 pandemic began to loosen its grip on the U.S. economy, we wait to hear the monthly jobs report. Has the unemployment rate gone down for American workers? The answer is yes. In fact, if we look at the unemployment rate for the last two months in 2022 (November and December), the rate decreased from 3.7% to 3.5%. The January 2023 jobs report from the U.S. Department of Labor revealed that 517,000 jobs were added, dropping the unemployment rate to 3.4%.

While this overall trend is encouraging, the gap between workers with and without disabilities remains a concern. According to the U.S. Department of Labor, people with disabilities still experience lower rates of employment and labor force participation than those without disabilities despite some recent improvements. As a Social Security-authorized Employment Network (EN), Allsup Employment Services (AES) sees this firsthand as we help our customers on their journey back to work.

Employment Data Reveal Disparity

This chart from the Department of Labor shows the disparity between these two groups.

The Bureau of Labor Statistics takes a closer look at this for both groups in the month of January 2023.

Persons with a Disability (Ages 16 – 64)

  • Labor Force Participation Rate: 39.6%
  • Unemployment rate: 7.5%

Persons without a Disability (Ages 16 – 64)

  • Labor Force Participation Rate: 76.8%
  • Unemployment rate: 3.8%

The U.S. Department of Labor also reveals that the economic downturn and recovery created even more inequities between genders. Women with disabilities continue to have a lower employment share relative to men with disabilities.

More Work Needed To Narrow The Gap

We can’t argue the importance of data when looking at trends and, more importantly, real-life scenarios. These data suggest we must work together to give people with disabilities more opportunities to work and be both personally and professionally productive and fulfilled.

The Social Security Administration’s (SSA) Ticket to Work (TTW) Program is a vital resource that allows individuals with disabilities to return to work once they have recovered enough to do so while protecting their Social Security Disability Insurance (SSDI) benefits. The TTW Program is free and offers significant incentives allowing SSDI beneficiaries to transition back to the workplace. One key feature is the Trial Work Period (TWP), during which you can work for as many as nine months and earn unlimited wages without losing SSDI or Medicare benefits.

To ensure the best possible outcomes, the SSA requires that TTW participants engage with Employment Networks for professional support. Our AES case managers get involved with clients in every aspect of returning to work. We’ll help them search for jobs, practice for interviews, provide access to vocational training or refresher courses and support them as they move forward. We know that going back to work after a lengthy absence can be difficult.

Employers Are Part Of The Equation

To bring even more people with disabilities back into the workforce, employers have a job to do as well. The pandemic shift to remote work and flexible schedules certainly helped, as it provided more options for those with physical limitations or ongoing medical treatments. Employers had to be accommodating and soon realized that performance did not suffer and, in many cases, productivity improved.

Employers see the benefits of accommodation and inclusivity. Yet, more needs to be done to narrow the labor force participation gaps between those with a disability and those without, and between men and women with disabilities.

The Americans with Disabilities Act (ADA), along with state laws, can help both employers and employees understand the meaning of reasonable accommodations ranging from adjustments of physical settings and equipment to flexible schedules for medical appointments and to more scheduled breaks throughout the day. It’s important that individuals with disabilities request special accommodations from their prospective employers. This open communication is essential so that the employer and the employee are on the same page.

Looking Ahead

If the trend continues, more jobs will be added to the economy, and the unemployment rate will potentially shrink. This is good news, but we need to work even harder to bring more people with disabilities into the labor force. For SSDI beneficiaries, TTW is the route back to both trade and non-trade professions without losing critical income and medical benefits. As we see every day at AES, the skills and contributions this group offers to employers across all industries are immeasurable.