February 28, 2023

Disability Job Programs Get Mixed Reviews

Nearly half of the people receiving federal disability benefits have a psychiatric impairment that interferes with working. And they tend to be younger and more willing to work than other disability beneficiaries.

This makes them good candidates for employment support programs that encourage working at least part-time and might even prevent them from applying for benefits at all.

According to a Mathematica review of research on three government jobs programs, the programs had some success in boosting participants’ employment and earnings. However, they didn’t prove effective over the long term in reducing their reliance on federal disability benefits.

One federal program in Texas was geared to people with disabilities who had not applied for benefits when they entered the program. The program offered services like help with job searches, case management, and access to medical care. A year after finishing the Texas program, the number of participants receiving benefits fell 27 percent in a comparison with people who hadn’t participated. But by the sixth year, that positive impact had largely waned.

While disability recipients with mental health impairments often want to work, about half of the people in a second study said they had felt discouraged by past jobs. They cited barriers to remaining employed – on top of their mental health challenges – such as perceptions by others that they weren’t capable, a lack of transportation, and a fear of losing their benefits if they get a job. Social Security suspends disability benefits when workers earn over a maximum amount, which is $1,470 per month in 2023.

But the researchers see the feelings of discouragement as “a window of opportunity” to prevent failed work attempts through job interventions or by educating beneficiaries about Social Security’s benefit rules. …Learn More