The May 2026 National Trends in Disability Employment (nTIDE) report, released May 8 by Kessler Foundation and the University of New Hampshire Institute on Disability, shows the employment-to-population ratio for people with disabilities ages 16-64 dropped from 38.5% in March 2026 to 37.9% in April 2026. During the same period, the ratio for people without disabilities ticked slightly upward from 74.8% to 74.9%.

The divergence widens a gap that matters for special needs families already managing higher costs and fewer financial buffers than the general population.

What Changed

The April decline follows a broader pattern. Labor force participation for people with disabilities reached a record 42.8% in November 2025, then began dropping. Current participation sits around 41.1%, down more than a percentage point from that peak.

John O'Neill, PhD, director of the Center for Employment and Disability Research at Kessler Foundation, noted that while April's 37.9% remains "well within the historically high range achieved by people with disabilities during the post-pandemic employment plateau," the month-to-month decline signals a stall after years of steady gains.

Year-over-year, the employment-to-population ratio for people with disabilities is up 0.5 percentage points compared to April 2025 (37.4%). That's progress, but the momentum has slowed.

Why the Gap Matters for Families

People with disabilities are more than twice as likely to live in families with incomes below the poverty line. When employment drops during a period of high inflation, driven by tariffs and the Iran war, the impact compounds.

Andrew Houtenville, PhD, professor of economics and director of UNH-IOD, suggested that rising prices may be pushing more individuals with disabilities into the labor market to help support their families. "The most immediate effect on the labor market today is inflation," he said in March 2026.

But increased labor supply doesn't guarantee jobs. If participation rises while employment falls, families face a harder search in a tighter market. The April data shows exactly that tension.

For special needs families, the stakes aren't abstract. Gasoline, groceries, and medical supplies all cost more. Disability-related expenses don't pause when income drops. The employment gap isn't just a statistic; it's the difference between making rent and falling behind.

What This Means for Employment Decisions

Families navigating employment decisions face a specific complication: many disability benefits programs have income and asset limits. Earning too much can disqualify someone from Medicaid, Supplemental Security Income (SSI), or other supports that cover medical care, therapies, and equipment. Inflation has made that calculation harder, increasing the financial pressure to work while the risk of losing health coverage can cost more than the job pays.

You need to understand how earnings affect benefits before accepting a position. Benefits planning helps map out what happens at different income levels so you can make informed choices rather than guessing.

What Families Can Do Now

If you're considering employment or worried about how work affects benefits, these resources can help:

• Ticket to Work: A free Social Security program that connects SSI and SSDI recipients with employment services, including benefits counseling. Call 1-866-968-7842 or visit choosework.ssa.gov.

Don't navigate this alone. A benefits counselor can walk through your specific situation and show you how different income scenarios affect your coverage. That clarity matters more now than it did six months ago.

Where the Numbers Stand

The nTIDE report tracks monthly employment data from the Bureau of Labor Statistics' Current Population Survey. The employment-to-population ratio measures the percentage of people ages 16-64 who are currently employed, regardless of whether they're actively looking for work.

Labor force participation measures the percentage of people who are either employed or actively seeking employment. The gap between the two captures people who want to work but haven't found jobs.

For people with disabilities, April's 37.9% employment ratio sits below the March figure but above the April 2025 level. That year-over-year gain is real progress. The recent monthly decline is also real.

Both can be true, but families living paycheck to paycheck measure progress in months, not years.

Looking Ahead

nTIDE releases a new report on the second Friday of each month. The June report will show whether April's drop was a one-month blip or the start of a longer trend.

Houtenville noted that as oil prices remain high, labor force participation may continue to increase as families with disabilities cope with rising costs. If that prediction holds, the next few months will show whether the labor market absorbs that increase or whether the gap between participation and employment continues to widen.

You can access the full May 2026 nTIDE report and sign up for monthly updates at the Kessler Foundation website.