DISABILITY EMPLOYMENT STATISTICS

5

Overview

The Institute on Disability at the University of New Hampshire published an annual disability statistics compendium with national employment figures for working-age adults. The report shows a large employment gap between people with disabilities and those without, and it highlights significant variation across states.

The compendium reports an employment rate of about 33% for people with disabilities versus about 73% for people without disabilities, yielding an employment gap near 39 percentage points. Full-time, year-round employment rates show a similar disparity, roughly 20% for people with disabilities compared with about 51% for those without.

Key takeaways

  • People with disabilities face substantially lower employment and full-time work rates than people without disabilities.
  • Employment opportunities vary widely by state and local labor markets, reflecting differences in job types, programs, and incentives.
  • Employers who focus on abilities, reasonable accommodations, and inclusive hiring practices can tap into an underused talent pool.

How it works

Employment statistics like these are compiled from population and labor-force surveys that compare labor participation and employment status for people with and without disabilities. The figures separate general employment rates from full-time, year-round employment to show both participation and job stability.

For employers and HR professionals, understanding those differences helps set realistic expectations and informs recruitment, retention, and accommodation planning. Employers can also consider short-term and individual disability insurance options when designing workplace benefits; see Understanding Short-Term Disability Insurance for more on how short-term coverage typically functions.

What it may cover (and what it may not)

Employment-focused analyses generally cover whether a person is employed, the number working full-time year-round, and geographic differences in employment rates. They do not measure job quality in detail, such as wages, benefits, or long-term career progression.

Statistics also do not explain individual employer practices or specific barriers a person faces; they show population-level gaps that suggest areas where policy, training, or workplace adjustments may help.

Common mistakes to avoid

One common mistake is assuming low employment rates mean low ability; many people with disabilities have the skills and experience needed for open roles when work is structured inclusively.

Another mistake is treating accommodations as expensive or rare. Often, simple adjustments or flexible scheduling are effective and low-cost.

Questions to ask an agent

When evaluating workplace benefits or hiring supports, ask whether a short-term disability plan covers partial wage replacement and how it coordinates with employer-paid leave and other benefits.

Also ask about individual options for higher coverage limits or specialty needs; additional guidance is available on individual disability products, for example see Understanding Short-Term Disability Insurance for more on individual coverage considerations.

Next steps

Review your hiring practices, post clear job descriptions focused on essential functions, and create a simple process for requesting accommodations.

If you want to align benefits with workforce needs or review specific policy options, talk to an agent to compare coverage, coordination with leave policies, and practical workplace solutions.

Frequently Asked Questions

Why are employment rates lower for people with disabilities?

Lower employment rates reflect multiple factors, including access barriers, mismatches between skills and available jobs, and workplace accommodation gaps.

What is a reasonable accommodation?

A reasonable accommodation is any change to the workplace or job processes that enables a qualified person with a disability to perform essential job functions.

Can small businesses afford accommodations?

Many accommodations are low cost or cost-free, such as flexible scheduling or modified workflows, and some programs offer financial incentives or technical assistance.

How can employers measure progress on disability inclusion?

Track hiring, retention, and promotion rates for employees with disabilities, gather anonymous feedback, and monitor use and outcomes of accommodation processes.

Need insurance for You, Your Family or Your Business?
We can match you to a qualified, local insurance expert!
Further Reading
October, National Disability Employment Awareness Month (NDEAM), gives your company an excellent opportunity to promote awareness for and appreciation of disabled employees. This year’s theme is “America’s Workforce: Empowering All.” Your company c...
When considering multiple offers of employment, or any employment for that matter, company benefits are usually a major consideration. Workers changing jobs with healthcare coverage in mind is a growing phenomenon because medical costs keep rising....
Short-term disability insurance is an important resource you may have heard about through your job or a private insurance agent. Understand what short-term disability insurance is as you decide if it's right for you. Short-Term Disability Insuranc...
Overview If you own and run a small business, a disabling illness or injury can threaten both your household income and the ongoing operation of the company. Many disabling conditions arrive without warning and can leave an owner unable to perform ...
One important issue that has been making headlines in many reports is the Social Security disability finance crisis. The program is being hit by a large wave of applications from the Baby Boomer generation as that cohort ages and the number of disa...