Disability employment dipped in February, breaking a three-month upward trend

For three months running, the employment-to-population ratio for working-age Americans with disabilities had been climbing: 39.8% in November, 38.9% in December, 38.4% in January. February broke the streak, dropping to 38.1%.

The numbers come from the March 2026 National Trends in Disability Employment (nTIDE) report, a joint effort of Kessler Foundation and the University of New Hampshire's Institute on Disability. The report draws on Bureau of Labor Statistics data, customized to focus on adults aged 16 to 64.

Month-over-month decline

The employment-to-population ratio for people with disabilities fell 0.3 percentage points between January and February 2026, a 0.8% decline. For people without disabilities, the ratio held flat at 74.5% in both months.

The labor force participation rate -- which includes people working, on temporary layoff, or actively searching for work -- followed a similar pattern. For people with disabilities, it dropped from 42% to 41.8%. For those without disabilities, it ticked up slightly from 78% to 78.1%.

"This is disappointing because we hoped this month's numbers would continue to show people with disabilities breaking out of the post-COVID plateau," said John O'Neill, director of the Center for Employment and Disability Research at Kessler Foundation.

Year-over-year context

The monthly dip looks worse in isolation than in context. Compared to February 2025, the employment-to-population ratio for people with disabilities rose from 37.1% to 38.1% -- a 2.7% increase and a gain of one full percentage point. The comparable year-over-year increase for people without disabilities was just 0.1 percentage point.

Similarly, the labor force participation rate for people with disabilities increased 2.5% year-over-year, compared to 0.4% for those without disabilities. In absolute terms, 6.59 million workers with disabilities were employed in February, representing 4.4% of the total 150.4 million U.S. workers.

The poverty multiplier

Andrew Houtenville, professor of economics and director of the UNH Institute on Disability, pointed to an important dynamic in how economic stress interacts with disability employment. People with disabilities are nearly three times more likely to live below the poverty line. When prices rise, their labor force participation has historically increased as well -- not because conditions improved, but because families can no longer afford to have anyone stay out of the workforce.

"It is an 'all hands-on-deck situation,' especially since people with disabilities are nearly three times more likely to live below the poverty line," Houtenville said.

What the numbers do not capture

The nTIDE report tracks headline employment metrics but does not break down the quality of employment -- hours, wages, benefits, or job stability. A person working 10 hours a week in a temporary position counts the same as someone in full-time permanent employment. The report also does not distinguish between types of disability, which can have vastly different implications for employment prospects and workplace accommodation needs.

The February data also predates any potential labor market effects from recent geopolitical developments, which O'Neill noted could lead to temporary layoffs affecting both disabled and non-disabled workers in coming months.

The nTIDE report is funded by the National Institute on Disability, Independent Living and Rehabilitation Research (NIDILRR) and Kessler Foundation.