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Disability and the Labour Market: Employment Disparities and Wage Gaps

Wage inequality has decreased in two-thirds of countries, but major disparities remain globally. Targeted policies are needed, says ILO.

Individuals with disabilities are less likely to be employed and, when they are, they earn considerably less than their non-disabled peers, according to the International Labour Organization (ILO). In a recent, the ILO reveals that individuals with disabilities are less likely to be employed and, when they are, they earn considerably less than their non-disabled peers.

The paper titled A Study on the Employment and Wage Outcomes of People with Disabilities, presents new data on these disparities and suggests measures for improvement.

Employment Challenges for People with Disabilities

The ILO report highlights that individuals with disabilities face higher unemployment rates and are more likely to be self-employed compared to those without disabilities. The data shows that, on average, workers with disabilities are paid 12% less per hour than their non-disabled counterparts. Alarmingly, three-quarters of this wage gap—approximately 9%—cannot be attributed to differences in education, age, or job type. In low and lower-middle-income countries, the wage gap widens to 26%, with nearly half of this disparity remaining unexplained by socio-demographic factors.

GENDER DISPARITIES IN DISABILITY EMPLOYMENT

The report underscores the additional challenges faced by women with disabilities. In 14 countries where gender-disaggregated data were available, women with disabilities earn 6% less than their male counterparts in developed countries and 5% less in developing countries. This gender pay gap further exacerbates the economic disparities experienced by disabled women.

LABOR MARKET PARTICIPATION RATES

The paper notes that approximately 1.3 billion people—nearly one in six of the global population—experience significant disability. Despite this substantial number, only 30% of disabled individuals are active in the labour market, reflecting a low overall participation rate. The slow progress towards greater inclusion in the workforce is a significant concern.

SELF-EMPLOYMENT AS A VIABLE OPTION

The report suggests that the higher rate of self-employment among people with disabilities may be driven by the flexibility it offers. Self-employment allows individuals to manage working hours and access work environments that accommodate their needs, potentially mitigating discrimination and providing greater control over their work conditions.

RECOMMENDATIONS FOR IMPROVING LABOR MARKET OUTCOMES

The ILO paper proposes several measures to enhance the labour market participation of people with disabilities:

BROADER RESEARCH ON INEQUALITIES

This working paper is part of a broader research project on inequalities. A previous study, published in February 2024, focused on employment and wage disparities between rural and urban areas, further emphasizing the ILO’s commitment to examining and addressing various forms of economic inequality.

The ILO’s latest report highlights critical issues in the employment and wage outcomes for people with disabilities, revealing significant disparities and suggesting practical measures for improvement. Addressing these challenges is crucial for fostering a more inclusive labour market and ensuring that all individuals, regardless of their disability status, have equitable opportunities for employment and fair compensation.

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