Why Economic Uncertainty Hurts People with Disabilities the Most
The Monthly Global Economic Uncertainty Index has spiked to an all-time high, even higher than during the pandemic.
Economic instability affects everyone, but people with disabilities face additional challenges that make financial downturns even more difficult to navigate. Limited job opportunities, increased healthcare costs, and the high cost of living disproportionately impact disabled individuals, who already experience systemic barriers to financial stability. During recessions or inflationary periods, these challenges become even more pronounced as government support is reduced, essential services become more challenging to access, and discrimination in employment increases. The financial burden of disability, combined with reduced social safety nets, creates a situation where disabled individuals are often among the hardest hit in times of economic uncertainty.
1. Limited Employment Opportunities and Workplace Discrimination
People with disabilities experience higher unemployment rates, even during stable economic times. They are more likely to hold lower-wage or lower-skill positions due to limited access to education, workplace discrimination, and systemic obstacles to career progression. In economic downturns, these positions are often the first to be eliminated, making disabled workers more susceptible to layoffs. Furthermore, employers may be reluctant to hire or keep employees who require accommodations, even though these adjustments are often low-cost or legally mandated. As job competition intensifies, biases against disabled workers can become more pronounced, leading to fewer job opportunities.
2. Higher Cost of Living and the Financial Burden of Disability
Inflation and rising costs affect everyone, but individuals with disabilities face significantly higher expenses. Medical care, prescription medications, assistive technology, personal care attendants, and accessible transportation contribute to this financial burden. Many people with disabilities live on fixed incomes, such as Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), which rarely keep up with inflation. Specialized diets such as gluten-free or low-sodium tend to be more expensive, resulting in higher grocery costs. Assistive devices like wheelchairs and hearing aids require maintenance and replacement, creating ongoing financial strain. Housing modifications, such as ramps or grab bars, and additional expenses like delivery fees for medications or accessible clothing further add to the high cost of living with a disability.
3. Reduced Government and Social Support
Economic downturns often result in budget cuts at both the federal and state levels, reducing access to these vital resources. Programs designed to help people with disabilities secure employment, live independently, or obtain necessary medical care may experience funding reductions, making daily life more difficult.
4. Mental Health Struggles Increase
Economic uncertainty adds stress and anxiety, especially for disabled individuals who already face systemic barriers. The fear of job loss, reduced healthcare access, or rising living costs can create or worsen existing mental health conditions. At the same time, economic downturns often result in funding cuts for mental health services, making it more difficult to access therapy, medications, or crisis support. This creates a downward spiral where mental health deteriorates while resources become scarcer.
5. Healthcare Becomes Less Accessible
Many individuals with disabilities need continuous medical care, specialized treatments, and prescription medications. During economic downturns, healthcare systems may face funding cuts, resulting in longer wait times and fewer services. If insurance coverage becomes more costly or difficult to obtain due to job losses, people with disabilities may find it challenging to afford essential care. Preventive and routine medical treatments may become unaffordable, leading to deteriorating health conditions and increased emergency medical expenses.
6. Housing Insecurity Increases
Accessible housing is already scarce. Economic instability makes finding suitable living quarters even more difficult to secure or maintain. Rising rents, fewer housing subsidies, and increased competition for affordable living spaces put individuals with disabilities at greater risk of eviction or homelessness. Discovering new housing is particularly challenging since options for accessible housing are limited, and relocation costs—such as moving services, home modifications, or application fees—impose additional financial strain.
7. Transportation Barriers Worsen
Many people with disabilities can’t drive. Public transportation systems often reduce routes and services during economic downturns. People with disabilities who rely on paratransit, accessible transit options, or ride-hailing services may struggle with fewer transportation options, making it harder to get to work, medical appointments, or grocery stores. If private transportation services, such as rideshares or accessible taxis, become more expensive or less available, independence is further restricted.
8. Advocacy and Legal Protections Weaken
Enforcement of disability rights may weaken as government agencies and advocacy organizations encounter budget cuts during an economic downturn. Legal aid services that assist disabled individuals in challenging discrimination, fighting for accommodations, or securing benefits may lose funding. This is compounded by executive orders reducing EEOC and OCR oversight for disability-related discrimination claims. Disability advocacy groups that depend on donations and grants struggle to maintain their efforts. This diminishes the resources available to people with disabilities to advocate for policy changes. When financial instability undermines enforcement and advocacy, individuals with disabilities encounter greater barriers to securing their rights.
Conclusion
Economic uncertainty disproportionately affects people with disabilities, exacerbating the financial, employment, healthcare, and housing challenges they already face. As costs rise and government support shrinks, the burden of disability becomes even heavier. Without strong legal protections, accessible workplaces, and reliable social safety nets, disabled individuals are left even more vulnerable during financial downturns. Addressing these inequities requires proactive policy changes, corporate accountability, and stronger support systems to ensure that disabled individuals are not pushed further into financial hardship when economic conditions worsen.