There is significant potential to improve the labour market participation of persons with disabilities according to European Commission report

There is significant potential to improve the labour market participation of persons with disabilities according to European Commission report

In September 2025, the European Commission’s Directorate General of Employment, Social Affairs and Inclusion* published its annual report on “Employment and Social Developments in Europe”.  The report analyses how to address labour shortages and strengthen labour market participation in the EU by unlocking the potential of women, older people, persons with disabilities, and migrants.

The report reflected on the significant potential there is to improve the labour market participation of persons with disabilities. In 2024, just over 56% of persons aged 20 to 64 with disabilities (about 25 million) participated in the labour market compared to about 84% of those without disabilities. There were also considerable differences in participation rates by degree of disability – about one third of persons with severe disabilities participated, compared to two thirds of those with moderate ones. 

The report points out the barriers persons with disabilities experience to enter the labour market which are well known to EPR such as: stereotypes and prejudices; employers’ lack of knowledge of their obligations and available support for persons with disabilities; difficult to access job-related information; hiring processes and workplaces not accommodating for the needs of persons with disabilities. Moreover, employers tend to overestimate the cost of employing persons with disabilities in terms of accommodating their needs and productivity, instead of focussing on their potential. These challenges are compounded by existing barriers in education and training opportunities, as well as the risk of losing disability status and associated benefits when taking on employment.

Furthermore, different options are proposed to increase labour force participation of under-represented groups in the labour market. 

• It studies the role of Public Employment Services in increasing labour force participation of underrepresented groups, such as persons with disabilities through direct support measures (e.g. ability testing, coaching, vocational rehabilitation, job trials); by connecting persons with disabilities with external service providers; and through awareness raising.
• It underlines that the dialogue between employers and trade unions is important to implement measures like reasonable accommodation for persons with disabilities. However, persons with disabilities are less likely to be members of trade unions.
• Finally, the report introduces measures to increase the labour force participation of persons with disabilities, including: person-centred approaches to support the transition of persons with disabilities into employment (e.g. job coaches, vocational rehabilitation); supported employment to help persons with disabilities secure and maintain paid employment; provision of accessible mainstream education, training, upskilling and vocational rehabilitation to persons with disabilities; maintaining disability benefits during employment; gauging the opportunities and risks of digitalisation in employment; studying the effectiveness of financial incentives for employers as well as quota systems; combatting discrimination in the workplace; and awareness raising on the legal obligation of reasonable accommodation of persons with disabilities in the workplace.

*The European Commission is organised into policy departments, known as Directorates-General (DGs), which are responsible for different policy areas. DGs develop, implement and manage EU policy, law, and funding programmes.

European Commission report on “Employment and Social Developments in Europe” available here.