Since 2021, Californians with disabilities have seen significant employment gains for the first time in over a decade. Flexibilities introduced during the pandemic—like remote work—are one way labor market access has improved for people with disabilities. At the same time, concerns are growing that these gains may erode as employers change their remote work policies, which could leave many Californians with disabilities facing economic hardship.
More than 1.8 million California adults aged 25 to 64 have at least one disability that impacts their daily life, including serious difficulties seeing or hearing, bathing or dressing, walking or climbing stairs, remembering or concentrating, and living independently. Just over half participated in the labor force in 2022 (the most recent data available) compared to about 83% of adults with no disabilities.
However, California workers with disabilities were employed full-time, full year—at least 35 hours a week—at about half the rate of workers with no disability (30% vs. 62%). Part-time employment rates were similar for both groups (16% vs. 18%) and include those who work part-time for the full year and part-time for part of the year.
Working has provided a buffer against poverty for many Californians with disabilities. Poverty rates for nonworking adults with disabilities are more than 2.5 times higher than for those who are working—even after accounting for safety net benefits. About 31% of nonworking adults with disabilities do not have enough resources to make ends meet, according to the California Poverty Measure (CPM), a joint effort between PPIC and the Stanford Center on Poverty that adjusts for housing costs and safety net benefits. By comparison, about 12% of workers with disabilities are considered poor by the CPM standard, which is a rate about 4 percentage points higher than all working adults.
Safety net programs do play a major role in supporting Californians with disabilities; without them, another 213,000 adults with disabilities would be in poverty. These programs are far more critical for those who do not work—nearly half (48%) could not meet their basic needs if they did not receive safety net benefits. The SSI/SSP program plays the biggest role, followed by CalFresh and housing subsidies. Tax credits play a much smaller role for non-workers since many, like the EITC, require some earnings.
The impact of safety net programs is smaller among workers with disabilities, because people must have relatively low incomes to qualify, but it is meaningful—reducing poverty by more than 6 percentage points. For example, to qualify for SSI/SSP benefits a person must be disabled and not able to engage in “substantial gainful activity,” which means monthly earnings cannot exceed a specified amount that is indexed annually—in 2024, that amount was about $1500. CalFresh provides the largest reduction in poverty for workers with disabilities, followed by tax credits.
October is National Disability Employment Awareness Month, an annual nationwide initiative to recognize the contributions of people with disabilities in the workforce and highlight barriers they face accessing jobs. Helping more people with disabilities access employment opportunities could reduce poverty among this group of Californians. It could also help the state to meet its workforce needs given the sizable drop in labor force participation driven by the aging population.