Latest Labour Market Figures Show Disabled People Are Twice As Likely To Be Unemployed Than Non-disabled People (9.2% vs 4.4%)

The Work Foundation, at Lancaster University analysis of latest ONS figures indicate that one in eleven disabled people are unemployed (9.2%) and the unemployment rate is at its highest level for over six years.* Disabled people are twice as likely to be unemployed than non-disabled people (9.2% vs 4.4%).

There are now 547,000 unemployed disabled people

There are now 547,000 unemployed disabled people, an increase of 110,000 since Oct-Dec 2024. Unemployment has risen across the UK economy in the last 12 months, but analysis indicates that the rate has risen far more quickly for disabled people than non-disabled people.

Quarter	Disabled people unemployment rate	Non-disabled unemployment rate	Unemployment gap
Oct-Dec 2024	7.2%	3.7%	3.5 pp
Oct-Dec 2025	9.2%	4.4%	4.8 pp

There are 218,000 fewer disabled people in work than a year ago. Employment levels for disabled people stand at 52.8%, down 1.2 percentage points on the year. At the same time, the non-disabled employment rate is 82.3% leaving the disability employment gap at 29.5%.

The Work Foundation researchers state that the rising figures point to structural barriers in the labour market for disabled workers, including limited access to flexible work, inadequate workplace adjustments and insufficient tailored employment support.

Since coming to power in July 2024, the Labour Government has not committed to a specific target for reducing the disability employment gap, but has “committed to reducing it“. The disability employment gap is now 2.0 percentage points larger than since July-Sept 2024.

The Work and Pensions Select Committee is currently undertaking an inquiry into Employment support for disabled people to explore the reasons behind the disability employment gap and scrutinise Government programmes to support disabled people into work.

Gemma, a mother from the West Midlands, has Lupus – a chronic autoimmune disease that causes extreme fatigue and painful joints – which has had a long-term impact on her daily life.

She had to leave her customer service job because she could not find the right balance between work, managing her health and caring for her children. Gemma has now been unemployed for six months and has applied for more than fifteen roles.

“Lupus is unpredictable. Some mornings I wake up exhausted or in so much pain that I have to ask family or friends to take my children to school. I need a flexible employer who will support me when my condition flares up. I want to work and feel independent but, right now, the door keeps closing before I’ve even had the chance to explain what I could bring.”

Gemma has considered starting her own business but has struggled without financial backing. “It’s really hard. Many employers are still not flexible or supportive of disabled people. I just want to show my children that no matter your background or disability, you can still be successful.”

Ben Harrison, Director of the Work Foundation at Lancaster University, said:

“Disabled people continue to face deep and enduring inequalities in the labour market and are twice as likely to be unemployed than non-disabled workers. The weakening jobs market means it’s harder for disabled people to get in and stay in work than it was a year ago.

“This could signal a concerning reversal in progress for disabled people, with employment falling on the year and the disability employment gap widening to nearly 30 percentage points.

“Compounding this, Work Foundation research shows that even when disabled people do access work, they are 1.5 times more likely to be in severely insecure jobs – experiencing low and uncertain pay and less rights and protection. At a time of a slowing labour market, workers in insecure jobs are left more exposed to weakening job demand and redundancies.

“To Get Britain Working, the Government must work quickly with employers to support disabled workers to access secure, flexible and sustainable employment opportunities.”

Arun Veerappan, Research Director, Disability Policy Centre, said: 

“These figures show that more and more disabled people want to work but are unable to do so.  

“It’s disabled people who appear to be hit hardest by ongoing weakness in the labour market and, despite the Government’s ambition, this situation is worsening.

“But there are things we can do – targeted recruitment incentives would make a real difference, for example.

“Employers’ NI exemptions for hiring people who have been out the workforce for at least 6 months or super-deducting occupational health to prevent avoidable workplace exits, would represent real action on disabled people’s unemployment.”

Fazilet Hadi MBE, Head of Policy, Disability Rights UK, said:

“The Government needs to take a hard systematic look at the causes of the Disability Employment Gap and co-produce solutions with Disabled people. We had no say in shaping the Employment White Paper proposals and the spending of the extra billions. Our input to the Mayfield Review and Milburn Review have been marginal. Disabled people are currently losing work due to the appalling delays in Access to Work and shocking cuts to support packages.

“Whilst employment definitely needs to be more flexible and accessible, many of the challenges to Disabled people gaining and retaining employment relate to barriers in wider society such as insufficient social security levels that drive people into poverty and mental distress, delays in NHS treatments and inadequate support during education.”

Richard Clifton, Chief Commercial Officer at Shaw Trust said:

“We appreciate the Government’s commitment to reducing the disability employment gap, but these figures underline the urgent need for more high quality disability employment support.

“There has been an extended gap in provision following the end of the Work and Health Programme, and with Connect to Work yet to be fully rolled out. We urge the Government to make greater investment in programmes at both national and local levels – and to do so at pace.

“We’re already seeing the positive impact of integrated support in West London. Disabled people are benefiting from Connect to Work, WorkWell and the MSK Trailblazer, where they are able to access the right support, at the right time, in the right place.”

Jane Hatton, Founder and CEO, Evenbreak – a leading disability job board run by and for people with lived experience of disability – said:

“Disabled candidates too often face outdated assumptions that they are a risk or an added cost compared to non-disabled people they are competing for jobs with. Despite the skills and experience they bring, disabled people are more likely to be squeezed out of the labour market as unemployment rises.

“At the same time, a backlog and reduction in funding of the Government’s Access to Work scheme is disadvantaging disabled people. Delays in assessments and funding mean that some disabled employees are seeing their support cut, and disabled people entering new jobs or who acquired long-term health conditions whilst in work are not getting the workplace adjustments they need to carry out their roles. This all combines to make it even more difficult for disabled people to enter or remain in work.”

Dr Paula Holland, a Senior Lecturer in Public Health at Lancaster University, said:

“These figures are alarming and indicate much more must be done to improve disabled people’s employment prospects. Government wants to get more people into work to increase the UK’s employment rate to 80% – halving the disability employment gap alone would see the government reach this target.

“Findings from our Inclusive Remote and Hybrid Working Study, funded by the Nuffield Foundation, reveal the importance of disabled people having access to remote and hybrid working opportunities for their employment, health and productivity. While not a panacea, expanding access to remote and hybrid working would improve the employment prospects of many disabled workers and should be included in Government actions to address the disability employment gap, including in its efforts to address the recommendations of the Mayfield Keep Britain Working Review.” 

*The current unemployment rate for disabled people is 9.2%. Due to a step change discontinuity in the ONS data, this is the highest comparable quarter since Oct-Dec 2019