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Disability in the Labor Market: Employment and Participation

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Abstract

Among people in prime working age (25-54), around 7 percent have a disability of some kind. In this set of companion posts, we will examine how prime-aged workers with disabilities have fared in the labor market compared to the year prior to the pandemic. In this first post, we will show that people with disabilities are far less likely to be employed than people without disabilities, with both lower labor force participation and higher unemployment playing a role. We will also show that although employment rates of people with disabilities are very low, they have risen rapidly during the post-pandemic period, largely because of rising labor force participation. Our results are consistent with an increased prevalence of work from home (WFH) arrangements in the post-COVID period differentially benefiting people with disabilities.

Suggested Citation

  • Rajashri Chakrabarti & Thu Pham & Beckett Pierce & Maxim L. Pinkovskiy, 2026. "Disability in the Labor Market: Employment and Participation," Liberty Street Economics 20260112a, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednls:102317
    DOI: 10.59576/lse20260112a
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    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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