05/18/2024

Job Market for Disabled Workers Helps Explain Labor-Force Participation Puzzle

A historically small share of Americans participating in the labor force could in part reflect a weak job market for people with disabilities, even six years after the recession ended.

Labor-force participation among Americans with disabilities, but who are able to work, fell from 25% in 2007 to 16% in 2014, according to a study to be released Tuesday by theAmerican Institutes for Research. That nine-percentage-point decline is nearly three times steeper than the drop for all adults ages 21 to 65 during that time.

The figures “have not reversed for people with disabilities at the same rate as for people without disabilities, despite the recovering economy,” wrote the report’s authors, Michelle Yin and Dahlia Shaewitz.

The job market for individuals with disabilities is important because having a disability or illness is the top reason why an American is not working or looking for a job. Among those not participating in the labor force, 32% say they are disabled or sick. That’s a higher share than those who are taking care of family members, 29%, or are in school, 11%.

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