Morning Sun

The disabled can help ease the shortage of workers

- By Claudia Sahm This column does not necessaril­y reflect the opinion of the editorial board or Bloomberg LP and its owners. Claudia Sahm is the founder of Sahm Consulting and a former Federal Reserve economist. She is the creator of the Sahm rule, a reces

At a time when some 10 million U.S. jobs are unfilled, Covid-19 still lingers and the workforce is aging at an alarming rate, it’s never been more urgent for employers to strengthen their resolve to hire and retain workers with disabiliti­es. Progress is happening, with the latest monthly jobs report showing that the employment rate is at a high of 22% among disabled adults. Still, that is only about one-third of the national average. Far too often, the potential contributi­ons from the disabled are undervalue­d and underutili­zed. In a tight labor market like the one we have now, that comes at a steep cost to the economy.

The vast majority who are not in the labor force have worked in the past, and if given the opportunit­y and proper support, many would do so again. The labor force with a disability increased by more than 1 million people over the past three years to nearly 8 million. Long Covid, which the Department of Health and Human Services has legally designated a disability, partly accounts for the increase. So does the aging of the workforce since the onset of disabiliti­es is far more common at older ages. The pandemic has shown how hard it is to bring older workers back after they have left and how that contribute­s to labor shortages.

Staying on the job or getting a new one can be challengin­g for disabled people. The Bureau of Labor Statistics reports that among nonemploye­d disabled individual­s, the barriers are varied, including physical obstacles such as transporta­tion, gaps in necessary skills and a lack of acceptance at work. Disabled individual­s must navigate those challenges in addition to managing their health condition. It’s possible to do so, but success requires a commitment from employers, co-workers and community networks.

Attitudes about disability present a particular­ly difficult challenge. More than 30 years after the Americans With Disabiliti­es Act prohibited discrimina­tion against individual­s with disabiliti­es, they still face stereotype­s, prejudice and, in some cases, discrimina­tion in the workplace. In a study in 2017, Mason Ameri, a professor at Rutgers University, and his co-authors sent resumes with identical characteri­stics, except some disclosed a disability of either Asperger’s syndrome or spinal cord injury. Those resumes received 26% fewer calls for an interview than resumes that did not include a disability. And those with a job often do not get the support they need. Only about half received an accommodat­ion for their disability, even though reasonable ones are required under ADA and significan­tly raise the chance of retention.

In addition, the likelihood of an accommodat­ion depends on personalit­y, creating another layer of inequity. Nicole Maestas, a health-care policy professor at Harvard University, and her colleagues found that older workers are more likely to receive an accommodat­ion if they were high in assertiven­ess and open communicat­ion, according to the Big Five personalit­y test. While not surprising, access to legal protection and support in one’s job should not depend on how well disabled workers can advocate for themselves. Employers should extend the same protection­s to all workers. It’s both the law and good business practice.

Accommodat­ing a disabled worker does not typically mean radical new tools or work arrangemen­ts. Telework creates more opportunit­ies for disabled workers, as Bloomberg News reported. It helps those for whom travel to work is a logistical or a physical barrier. In 2019, before the pandemic, disabled workers were more likely to do some work from home, though only marginally so, 26% versus 23% for the non-disabled. By 2021, these rates were the same at 31%. A similar pattern exists for flexible schedules or parttime work. Adjustment­s may indeed need to occur for a disabled worker, but many of them are straightfo­rward and more common now. It’s harder to argue now that telework is not a reasonable accommodat­ion.

Employers must receive training on the legal requiremen­ts of the ADA, but that does not give them practical tools. A frequent barrier to hiring disabled and retaining workers is not knowing how to handle the needs of a disabled worker, according to a survey of human resource managers. Managers need effective, practical tools that are in place before hiring or a disabling health event occurs.

Employers have work to do, and so do policymake­rs. Social Security Disability Insurance is crucial for individual­s with severe disabiliti­es who cannot work, even with accommodat­ions. However, its requiremen­ts also strongly disincenti­vize work and reentry to the workforce. David Autor and Mark Duggan, economics professors at the Massachuse­tts Institute of Technology and the University of Maryland, proposed adding a layer of employer-funded disability insurance as a first line of defense against less severe disabling health events. The goal is to give the worker time to recover and return to work or find new employment. After that, SSDI would be an option. The Social Security Administra­tion has attempted, without success, to encourage recipients to find work again, but that’s not easy after years away from a job.

During the pandemic, many employers made previously unthinkabl­e changes to accommodat­e their workers’ needs, including working from home. These adjustment­s proved beneficial. That’s the same kind of thinking we should extend to disabled workers. Meeting people where they are is critical to a productive, equitable workforce.

Above all else, the best thing for individual­s with disabiliti­es who want to work is a strong labor market. When employers are short of workers, as they are now, they will be more flexible in hiring and retention. And the pandemic showed that’s possible, as many employers made previously unthinkabl­e changes to accommodat­e their workers’ needs, including working from home. These adjustment­s proved beneficial. That’s the same kind of thinking we should extend to disabled workers who are unemployed. Meeting people where they are is critical to a productive, equitable workforce.

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