East Hanover, NJ – September 5, 2025 – In a notable shift within the U.S. labor market, the latest National Trends in Disability Employment (nTIDE) report reveals an encouraging upward trajectory in employment and labor force participation metrics specifically for people with disabilities. This development contrasts with a simultaneous decline observed among people without disabilities, signaling a nuanced evolution of labor dynamics in the post-pandemic economic landscape. Prepared and released by the Kessler Foundation in conjunction with the University of New Hampshire’s Institute on Disability (UNH-IOD), the nTIDE report leverages customized analyses derived from U.S. Bureau of Labor Statistics (BLS) data, focusing on working-age adults aged 16 to 64.
Comparing the labor market indicators from July to August 2025, the employment-to-population ratio for people with disabilities demonstrated a meaningful increase, rising from 37.0% to 38.5%. This change, representing a relative increase of approximately 4.1%, marks the highest recorded level to date and indicates a positive turn for the inclusion of people with disabilities in the workforce. In stark contrast, the same ratio for people without disabilities declined marginally from 75.1% to 74.5%. The employment-to-population ratio, a critical economic indicator, quantifies the proportion of a specified demographic that is employed relative to its total population size, offering insights into both labor demand and engagement.
Labor force participation—a measure broader than employment alone as it includes those actively seeking work—also shifted in ways that illuminate underlying labor market dynamics. Among people with disabilities, participation increased modestly from 41.6% in July to 42.2% in August 2025, reflecting a renewed willingness or necessity for seeking employment. Conversely, this rate declined for those without disabilities, moving from 78.5% to 77.9%. Such trends may reflect complex economic and social factors, including changing individual incentives, labor market conditions, and policy impacts affecting these populations differently.
These month-over-month gains for people with disabilities have pushed key labor market indicators to all-time highs. The employment-to-population ratio for this demographic narrowly surpassed its prior peak of 38.3% seen in November 2023, May 2024, and January 2025. Elaine E. Katz, Senior Vice President of Grants at Kessler Foundation, underscores the significance of this milestone: “We are witnessing a meaningful increase in the presence of people with disabilities in paid employment. This reflects two convergent trends: newly employed individuals entering the workforce and previously discouraged workers deciding to re-engage.”
Likewise, the labor force participation rate of 42.2% in August 2025 is unprecedented, exceeding the previous heyday recorded in January 2025. Andrew Houtenville, PhD, director at UNH-IOD, contextualizes these trends by noting that the observed metrics suggest a plateauing effect—labor market indicators have ascended steadily following substantial post-COVID economic recovery growth since mid-2023 but are now stabilizing at elevated levels. Dr. Houtenville also issues a cautionary note regarding the broader implications: “Increased labor force participation may reflect economic pressures pushing more people with disabilities into the labor market, responding to inflationary pressures and losses in household income, especially given persistent poverty within this population.”
Examining annual changes between August 2024 and August 2025, the employment-to-population ratio for people with disabilities rose from 36.4% to 38.5%, solidifying the trend with a 5.8% relative increase. In contrast, the ratio for people without disabilities slightly declined from 74.8% to 74.5%. Labor force participation for people with disabilities similarly advanced from 40.0% to 42.2%, a 5.5% relative rise, while the corresponding figure for people without disabilities decreased modestly from 78.2% to 77.9%. These year-over-year changes emphasize the robustness of employment gains among people with disabilities against marginal declines experienced by others.
Population-level labor statistics for August 2025 indicate that among approximately 151.8 million employed individuals aged 16 to 64 nationwide, about 6,653,000 reported disabilities, representing 4.4% of the workforce. This segment’s growth in employment and participation rates holds profound implications for both economic policy and social equity. It suggests that barriers to employment for people with disabilities may be eroding gradually, yet challenges persist that require sustained attention.
The release of nTIDE data is traditionally accompanied by an interactive Lunch & Learn webinar, designed to facilitate dialogue around disability employment statistics. Scheduled for September 5, 2025, this live session allows participants to engage directly with researchers and policy experts, including guest speakers from the disability services sector. This forum serves a critical role in disseminating findings, contextualizing data trends, and fostering collaborative approaches to workforce inclusivity.
nTIDE’s methodology involves a careful synthesis of monthly BLS employment reports, adjusted and segmented by UNH-IOD to focus expressly on working-age adults with disabilities. This granular approach allows for specific labor market insights that might be obscured in broader statistical releases. By providing timely and nuanced employment data, nTIDE supports researchers, policymakers, and advocates in identifying emerging trends and opportunities relevant to disability inclusion.
The broader mission of Kessler Foundation and the Institute on Disability underpins the nTIDE effort, representing a convergence of research excellence and applied social impact. These institutions continue to pioneer rehabilitation science and workforce integration initiatives that promote independence and improve quality of life for people with disabilities. Their rigorous and transparent approach to data collection and reporting ensures that nTIDE remains a foundational resource in shaping disability employment policy.
As economic uncertainty and inflationary pressures persist nationally, understanding the labor market behavior of people with disabilities gains increased urgency. The current gains in employment and participation, while encouraging, necessitate ongoing monitoring to discern whether they represent stable integration or are temporary responses to economic flux. Strengthening policies that support accessibility, anti-discrimination, and skill development remain essential to sustaining and accelerating these positive trends.
In summation, the latest nTIDE report provides compelling evidence that, despite a challenging general labor market environment, people with disabilities have achieved incremental yet meaningful advances in employment and labor force engagement. These shifts carry significant implications for inclusion, economic independence, and social equity. Continued attention to the mechanisms enabling these improvements will be critical as the United States charts its recovery and growth trajectory in the years ahead.
Subject of Research: Employment trends and labor market participation among people with disabilities in the United States.
Article Title: National Trends in Disability Employment Reach New Heights Amid Shifting Labor Market Dynamics
News Publication Date: September 5, 2025
Web References:
- Kessler Foundation: https://kesslerfoundation.org/
- University of New Hampshire Institute on Disability: http://www.researchondisability.org/
- U.S. Bureau of Labor Statistics Jobs Report: http://www.bls.gov/news.release/empsit.nr0.htm
- nTIDE Reports and Archives: http://www.ResearchonDisability.org/nTIDE
Image Credits: Kessler Foundation
Keywords: Social sciences, Demography, Unemployment, Disability employment, Labor force participation, Employment-to-population ratio
