Unemployment and Underemployment of People with Disabilities: An Untapped Resource within the Global Economy

Abstract

Global data indicate people with disabilities have disproportionately high unemployment and underemployment rates, often earn less than those without disabilities, and face barriers to education that further impede access to high-paying jobs. Some of the challenges to social and economic inclusion of people with disabilities include inaccessible physical environments; lack of access to transportation, assistive technology, and high-quality service delivery; communication barriers; discrimination; and stigma within society and the workforce. This chapter provides a clear understanding of the persistent issue of unemployment and underemployment of people with disabilities and identifies multiple benefits related to employing individuals with disabilities. Implications for policy and practice to address challenges and barriers to employment and societal inclusion of people with disabilities are presented as a starting point for facilitating global economic growth and stability by tapping into this underutilized resource.

1. Introduction

According to the World Health Organization, an estimated 1.3 billion people worldwide experience disability [1]. This equates to approximately one in six people or 16% of the global population. Worldwide, people with disabilities are less likely to be employed than people without disabilities and more likely to be underemployed, in part-time or temporary positions, and earning lower than average salaries [2]. A factsheet developed by the United Nations states, in developing countries, 80–90 percent of persons with disabilities of working age are unemployed, whereas, in industrialized countries, the figure is between 50 and 70 percent [3].

Despite the disconcerting unemployment data for persons with disabilities, many countries are facing shortages in the labor force due to demographic shifts, an aging workforce, and retirement of the post-World War II baby boomer generation [4]. According to third-quarter employment data for 2021 as reported by the Pew Research Center, in the United States, 50.3 percent of adults 55 and older reported being out of the labor force due to retirement [5]. Additionally, the recent global COVID-19 pandemic has reduced the number of people in the workforce due to death, expedited retirement, and an increased disability demographic resulting from survivors with long-term symptomology [6]. The pandemic created a global health crisis that resulted in public lockdowns and disruption in the workforce worldwide. The slow and uncertain progression of the pandemic had a profound effect on the global economy and labor market. According to Verick et al., the long-lasting and unpredictable impact of the COVID-19 pandemic will require changes in policies and practices to facilitate the shift of resources to “new sectors that have the potential to create decent and productive employment” [6]. A restructuring of the labor market and recruiting from diverse talent pools are two viable solutions to the current job crisis and labor demands. People with disabilities are one of the largest underutilized labor pools [7]. They comprise the largest minority group worldwide, making them a sizable untapped talent resource [1].

Work is central in people’s lives, and, in many cultures, a major aspect of identity [8]. Employment has been shown to be correlated with personal dignity, independence, well-being, social engagement, and sense of purpose [9]. For many people, job security, sustainable income, and contributing to society are common motivators for obtaining and retaining employment [10, 11]. Relative to their non-disabled counterparts, unemployed people with disabilities are as likely to want a job and are similar in their views of the importance of income, job security, and other valued job characteristics [11].

In addition to high unemployment rates, underemployment is also common among those with disabilities with only about 35% of employed individuals with disabilities occupying full-time positions [12]. Underemployment occurs when “workers’ jobs don’t use all their skills, education, or availability to work” [13]. Being unemployed, underemployed, or working in a role that is not aligned with a person’s interests can negatively impact several areas of life. Studies indicate that unemployment is associated with lower quality of life, diminished access to education and healthcare, feelings of isolation, hopelessness, loss of self-esteem, limited social life, and reduced consumption patterns due to lack of financial stability [9]. People with disabilities have typical monthly expenses and higher than average medical bills for disability related treatments, medications, assistive devices, and other costs associated with disability. With fewer opportunities for full-time employment with benefits, people with disabilities have a more difficulty being fully independent. They often find themselves in a poverty trap because they cannot risk losing their disability related medical and fiscal benefits. In the United States, the complex, ever-changing welfare system provides disincentives to work [14]. One must prove they cannot work to be eligible for benefits, and disability payments are reduced when working (based on a complicated government formula). Additionally, people are not properly educated on work incentives that are meant to help people to become independent of the welfare system.

2. The persistent issue of unemployment and underemployment of people with disabilities

People with disabilities are underrepresented in the workforce [4, 15]. Compared to people without disabilities, a disproportionate number of individuals with disabilities are unemployed or underemployed. In the United States, this does not consider the 8 in 10 people with disabilities who are not represented in the labor force because they are not working or looking for work [16]. When individuals with disabilities are not registered as unemployed, they become an invisible labor statistic, skewing the data, and making them more likely to be overlooked by policy makers [17].

Several factors contribute to the high levels of unemployment and underemployment of people with disabilities. To begin, the term “disability” implies a lack of ability [10, 18]. This language may contribute to low expectations for persons with disabilities and an association with being less capable and less competent than a person without a disability. Language is powerful. Linguistics scholars consider language as a cultural, social, and psychological phenomenon [19]. Understanding the definition of the term “disability” and its complexities is critical to removing the negative connotations that may be associated with it. Identifying new, empowering language surrounding “disability” may shift perspectives related to the abilities and capabilities of this group of individuals.

Disability is a complex concept with multiple dimensions – people can be disabled by environmental factors as well as by their bodies [4]. The International Classification of Functioning, Disability, and Health (ICF) suggests a multidimensional approach to understanding functioning to include interaction between disability and contextual factors [4, 16, 20]. Social and biopsychosocial models of disability recognize differences in abilities but posit that the disability is not the presenting issue; rather, inaccessible physical environments, communication barriers, and lack of access to transportation, technology, transition programs, postsecondary education, high-quality service delivery and supports create barriers to employment for this population [21].

Despite laws supporting persons with disabilities in the workplace, stigma, fear, and preconceptions impact hiring decisions. Common misconceptions are that people with disabilities; cannot do the work, take longer to learn, need expensive accommodations, require more help than others, cannot get things done in a timely manner, will make co-workers uncomfortable, have higher levels of absenteeism, and have trouble getting along with others [8]. In turn, what we see in the workplace are negatively biased performance expectations and the assumption that applicants with disabilities are not capable of taking on challenging or complex duties [22]. In the disability community, ableism is a common term used when referencing a person or an employer with these negative misconceptions of a person’s ability. Employers may have a lack of awareness or knowledge regarding hiring a person with a disability, concern over disability related costs (accommodations, health insurance, etc.), fear of legal liability, and assumptions that people with disabilities do not want challenging careers, all which may impact employment practices and outcomes [10]. In addition, recruitment and hiring practices may inadvertently deter people with disabilities from applying [10, 23]. Practices include posting to inaccessible job boards and websites, unconscious or conscious bias in hiring practices, and inflexibility with the interview process [10]. Negative perceptions can be found at the individual or systematic level. The effect of such biased views translate into lack of opportunity for promotions and advancement. People with disabilities are less likely to be salaried or to have benefits [24] and they are more likely to be employed part-time [10]. On average, people with disabilities earn 63 cents for every dollar a nondisabled person earns [25].

Stigmas, misconceptions, and discriminatory behaviors within the workplace make it difficult for individuals with disabilities to represent themselves authentically at work, often withholding pertinent information about their disability. People with non-visible disabilities, such as mental illness, learning disabilities, traumatic brain injury, and chronic health conditions (diabetes, cancer, digestive disease, etc.) choose to conceal due to fear of negative repercussions and stigma and to not feel different or disconnected from their colleagues and peers [10, 26, 27]. Disclosure may be required when accommodation is needed. When necessary, the person may choose to only disclose to selected staff or leadership [10, 28]. If a person chooses to disclose, employers are typically not prepared for disclosure discussions, and they may be unsure how to implement them [10].

Employers may not be knowledgeable of requirements and responsibilities regarding implementation of reasonable accommodations and they may not know the right questions or responses for supporting an employee who is making an accommodation request. Reasonable accommodations are job adjustments or modifications in the workplace that enable a person with a disability to successfully perform essential functions of the job, but do not create an unreasonable burden or undue hardship for the employer [4]. Accommodations are often perceived as physical changes to an environment, a large investment of a person or organizations time, or purchasing items when in fact many accommodations are quite simple to implement and do not require much financial investment [4]. In fact, approximately 59% of accommodations cost nothing and most equate to about $500 per employee [29]. Examples of reasonable accommodations may include adjustments to a break schedule, providing checklists and time management tools, and shifts in communication style, among others.

The barriers people with disabilities face to obtaining integrated, competitive employment are not just at the employer level. Individuals with disabilities may have been subjected to a lifetime of low expectations that have led to self-doubt, lack of self-confidence, amotivation, anxiety, and depression among other self-limiting barriers and behaviors [4]. Lack of social and economic inclusion of people with disabilities may create feelings of social isolation. Limited disability inclusion policies and practices may lead to difficulty forming interpersonal relationships and natural supports at work [4]. Increases in work demands and intensity that correlate with worker shortages may contribute to physical and mental health issues for all employees, not just those with disabilities.

3. Benefits of hiring people with disabilities

Companies that embrace best practices for employing and supporting employees with disabilities in the workforce outperform their peers [30]. The Disability Equality Index (DEI) is a tool utilized to measure the culture, leadership, community engagement, support services, employment practices, access, and supplier diversity. A 2018 study conducted by Accenture Research utilized the DEI to assess 140 large companies within the United States on levels of workplace culture and inclusion. The study found that companies that stand out in terms of disability inclusion were, on average, two to four times more likely to outperform their peers in terms of total shareholder returns [28]. Research shows hiring people with disabilities leads to increases in business performance, levels of innovation, employee productivity, and return on investment via training, market shares, and shareholder values [29]. Employees with disabilities have higher engagement levels and retention rates, leading to up to 30% lower turnover for employers [29]. Additionally, diverse workplaces have been shown to have high workplace morale and better reputations among consumers [31].

Several common characteristics of people with disabilities lend to them being valuable employees. Many times, people with disabilities have to be creative to adapt to the world around them, often not designed with their disability in mind, and in turn develop problem-solving skills, persistence, forethought, and willingness to try new things [29]. Workers with disabilities tend to be more motivated to work, often fueled by the difficult process of obtaining the job and wanting to keep it once finally secured. These high levels of motivation manifest as other benefits for their employer, such as being friendlier on the job, performing consistently at high levels, achieving high performance evaluation scores, and being loyal, long-term employees [30]. These qualities aren’t just beneficial to the employer, they also create a better business/work environment for coworkers and customers [30, 31].

Employers lack awareness and understanding of the untapped talent pool and potential benefits of hiring individuals with disabilities. As of 2022, the unemployment rate of persons with a disability in the United States was 7.6%, a figure more than double the rate for persons without a disability [16]. The misconceptions regarding the cost of reasonable accommodations versus the return on investment of disability inclusion are stark in contrast. As mentioned previously, many companies are concerned about the cost of accommodating employees with disabilities while a high percentage (approximately 59%) of accommodations cost nothing and others average less than $500 per employee [28]. In the United States, when hiring people with disabilities, many employers qualify for tax incentives, such as the Work Opportunity Tax Credit (WOTC), and funding for accommodations and accessibility, such as the Disabled Access Credit [16]. Employment candidates accessing services through U.S. State Vocational Rehabilitation Agencies may have access to an even greater pool of resources and funding, such as job coaching, reimbursed wages, discretionary spending, and more to alleviate any potential business costs [32].

Persons with disabilities make up the third largest market segment [33]. Employees with disabilities are tax payers and less reliant on benefit systems. A study by the American Institutes for Research, found that the total post tax income of working-age people with disabilities is approximately $490 billion [33]. According to the International Monetary Fund, Gross Domestic Product (GDP) measures the monetary value of final goods and services produced in a country in a given period of time [34]. If one percent of people with disabilities joined the U.S. labor force, the GDP could be boosted by up to $25 billion [29]. People shop and spend money where they work and feel represented. A 2016 Nielsen study found that individuals with disabilities and their families tend to be more brand loyal, shop more, and spend more per trip than the average customer [29, 35]. People with disabilities comprise a significant portion of the consumer market. Companies should ensure products are inclusive and accessible for a diverse group of customers. Employers with diversity hiring practices and policies for equal opportunity employment should make them visible to attract more workers who have disabilities.

4. Implications for policy and practice

Current policies, around the globe, are lagging in addressing the high unemployment rate of people with disabilities [4, 10]. Some countries have instated quota systems that require a percentage of workers with disabilities to be employed at qualifying businesses. The penalty for not meeting these quotas is typically a tax or other fine. In response, companies have often looked inward to meet these requirements, pressuring current employees to disclose disabilities to retain their positions and helping the company attain their numbers [4]. Other employers simply pay the fines to release themselves from the requirement of fulfilling the quota. Results show an underwhelming and questionable impact on disability employment figures and a model that frames employees with disabilities as a burden or requirement to meet, rather than valuing them for their contributions to the workplace. It creates and perpetuates a stereotype that workers with disabilities are being hired to meet legislative policies rather than for their merit.

Many countries have passed legislation to prevent or address discrimination and accommodations in the workplace [4]. Some examples of this type of legislation include the Equality Act in the United Kingdom, the Disability Discrimination Act in the Netherlands, and the Social Code IV in Germany, the Employment Equity Act in Canada, and the Americans with Disabilities Act (ADA) in the United States. Similar to European legislation, the ADA has mostly been used to defer and reduce discrimination and provide access to accommodations. However, the enforcement of the ADA is widely considered to be inconsistent at best and it has not shown correlation with increasing employment rates for the disability community [4]. Low disability employment rates in the United States are generally attributed to the aforementioned misconception regarding the cost of accommodations, discrimination in hiring practices, and the existing stigmas and stereotypes surrounding disability [4]. Employment First policies, being adopted by states within the United States, ensure that policies and legislation are available in a clear, simple language format and include information on how the policy/legislation will be implemented and regulated [35].

4.1 Recommendations for policy makers

• Provide financial assistance for accommodations, assistive technology, transportation, postemployment supports, and other expenses related to gaining and maintaining employment. These investments amount to less than costs associated with providing disability benefits and allow beneficiaries to contribute to society by becoming tax paying citizens.

• Support disability awareness campaigns that promote knowledge of systems and supports available for individuals with disabilities seeking employment; reduce stigma and discriminatory practices; and mitigate fear/uncertainty by employers through provision of information, resources, and incentives that highlight the benefits of hiring individuals with disabilities.

• Enforce antidiscrimination legislation. Evaluate the impact of legislation to ensure effectiveness and inform needed amendments/revisions and new policies.

• End subminimum wage practices and other pay gaps related to disability, gender, race, and other factors.

• Develop policies that require individuals with disabilities to seek vocational rehabilitation (VR) services upon stabilization or within two years of diagnosis.

• Strengthen the public VR infrastructure/system by expanding programs to reduce VR counselor workload and caseload size, provide training and resources to ensure availability of highly qualified, credentialed VR professionals; increase salary rates to reduce turnover of VR employees.

• Reform disability benefit systems to be user-friendly and to promote utilization of available work incentives. Include continuous access to healthcare necessary for maintaining employment (i.e. medications, therapies, durable medical equipment, etc.).

• Focus research funding on efforts to identify solutions to problems and causes of low employment rates for people with disabilities.

4.2 Recommendations for employers/businesses

• Leverage the talent pool through recruitment processes that do not create barriers (i.e. inaccessible electronic job boards, company websites, technology platforms such as Zoom); provide diversity friendly signals; advertise broadly; instate formal disability hiring policies and retention strategies; partner with employment agencies that serve persons with disabilities (i.e. VR), and offer internships and apprenticeships for on the job learning [10]

• Train human resources staff and supervisors on effective interviewing approaches for candidates with disabilities [10, 36, 37]; discuss essential duties of the job; use a consistent approach to selection (i.e. structured interviews); prepare for discussions regarding disclosure and reasonable accommodations [10, 38]

• Create a workplace/organizational climate that facilitates safe and constructive disclosure [10]; promote inclusive and accessible work environments; include disability in diversity and inclusion statements and as part of the company’s core values; model a disability inclusive culture through day to day practices; not just compliance-based or legislative requirements [10, 39]

• Invest in employee resources and formal training on inclusion, etiquette, and disability awareness; address biases; challenge stigmas

• Ensure opportunities for promotion/career advancement; individuals with disabilities should occupy roles at all levels including top management positions; rebrand disability through high expectations and achievements

• Implement universal design for the benefit of all employees. Universal Design is the design and composition of an environment so that it can be accessed, understood, and used to the greatest extent possible by all people regardless of their age, size, ability or disability [40]

• Offer flexible schedules and telework options [10, 40]; Task differentiation – customize positions that make optimum use of the work capacity and talents of all employees [4]; cross-train employees

4.3 Recommendation for practitioners

• Utilize a multidimensional approach to career development by addressing multiple areas of individual functioning and consider the impact of contextual factors; stress work related social skill development; understand an individual’s health and functioning beyond the disability diagnosis [15, 41]

• Focus on the training and retention of highly competent employment specialists who provide vocational rehabilitation services for persons with disabilities [42]. Recognize that offering lower than average salaries/wages for service providers results in high turnover which is costly and contributes to lack of continuity of service provision.

• Offer flexibility in service provision that recognizes and utilizes the talents of service providers who work best with the individual with a disability and those who may be most effective in employer engagement activities. Consider a team approach to service provision that maximizes the specific competencies and talents of service providers on the team and minimizes gaps in services due to turnover and other factors.

• Utilize a multifaceted approach to vocational assessment that combines valid and reliable instruments that have been normed to the target population (i.e. person with a learning disability) with qualitative approaches that involve observation and time spent in natural/community settings to best understand the unique talents, skills, interests, and support needs of each job seeker. Employ individualized strategies for identifying employment options (based on unique needs and circumstances).

4.4 Recommendations for persons with disabilities and their families

• Establish and maintain high expectations for family members with disabilities to promote maximization of talents, skills, and community involvement including postsecondary education and employment.

• Become aware of laws that protect against discrimination; one in three are not [43]. Promote self-advocacy and self-determination skills for individuals with disabilities.

• Strive for a well-developed vocational identity which involves an individual’s goals and interests related to work; contributes to increased confidence, better decision making, and improved ability to manage environmental factors that impact career development [15, 43].

• Develop a “work personality” that consists of a combination of internalized values related to work and externalized behaviors that manifest in the work environment. Work personality consists of motivation, self-concept and needs related to work behaviors [15, 44, 45] and impacts work adjustment and adaptation to work environments [45, 46]. Work adjustment is the ability of a person to adjust and adapt to the changing work environment. It contributes to job retention and stability over time and is an important construct for career development [46].

5. Conclusion

Multiple factors have led to a global labor shortage. Employers should recognize people with disabilities as an untapped talent pool and leverage this vital resource. Policy makers must to develop and enforce policies and legislation that empower persons with disabilities to engage in competitive, integrated employment while protecting necessary healthcare services and providing postemployment supports that promote job retention. Policies and legislation must be evaluated to ensure effectiveness in promoting the full inclusion of people with disabilities in the workforce and community. Individuals with disabilities and their families should strive to maintain high expectations and advocate for full inclusion by voting and making their voices heard. Funding of research that identifies effective solutions to workforce inclusion of people with disabilities and access to needed services, supports, and resources will propel workforce initiatives that promote inclusive employment practices and lend to a global economic growth and stability by tapping into this underutilized resource.