‘Hierarchy of disability’: Hidden bias in the $578 million employment gap

26 Feb 2026

Whaikaha recently released a report highlighting the $578 million disability employment gap. The findings are stark. Disabled people are twice as likely to be unemployed than non-disabled people, and significantly less likely to hold qualifications. 

This issue is not new, and the drive by Whaikaha to spotlight these statistics fueling discussion from a strong evidence base is very much welcome and needed. However, when the issue of disability employment gets raised, we hear a lot of the same narratives. The same arguments the disability sector has been advocating for for the past decade. Disabled people want to work; when they are employed, success indicators go up.

Hiring disabled people is a proven economic opportunity; we’ve seen multiple studies prove this, so why aren’t things shifting?

The report speaks to barriers such as inclusive education, workplace accommodations and flexible working, but the elephant in the room is bias. Over a decade ago, MSD published research that is still relevant today –  the study identified a hierarchy of disability, indicating that employers are influenced by their perception of different disabilities, regardless of whether someone is perceived as being capable of doing a job or not. 

For people with intellectual and learning disabilities, negative perceptions aren’t just career-limiting; they are socially isolating. From a young age, these individuals are met with low expectations. They are barred from participating in social activities, put in isolating learning groups, and stay in school longer than their peers. Many find that, by the time they leave school, their friends have moved on to higher education or job opportunities, while they are left without the skills required to transition into the workforce or adult life.

This has led us to an uncomfortable reality

Many employers aren’t set up to employ individuals without work-ready skills. It takes more resources to onboard somebody with higher needs, and that doesn’t make immediate business sense. In response, employability training programmes have been set up to support young adults with intellectual disabilities. However the challenge is that, once individuals have completed their training programme, businesses are still reluctant to hire them.

Even when hired, the reality is that intellectually disabled employees aren’t treated with the same rights as their non disabled peers. These employees are often siloed, given menial tasks, and offered limited opportunities for development. They are often paid below the minimum wage and are more likely to be laid off.

We see this reflected in the latest report findings, “Disabled people are more likely to work part-time, face lower wages, and are more often engaged in jobs with low autonomy and high routine content. The disability wage penalty persists, with average hourly wages for disabled people approximately 10-15% lower than those for non-disabled people across most countries.”

So, where does that lead us?

With the need for a new system, a new approach and a new way of thinking. People with intellectual and learning disabilities are capable. When given real-world responsibility, high expectations, and the right scaffolding, young adults with intellectual disabilities can thrive. We know this, because we are seeing it happen at Taimahi. Young adults on our programme continue to challenge people’s perception of what they are capable of, demonstrating an ability to learn systems, work independently and productively.

Disability inclusion is an asset to business. But, if we are to truly address unemployment among intellectually and learning disabled individuals, we need to be pragmatic. The reality is that, in order to thrive in paid employment roles, many individuals still need a level of supervision that many businesses are not set up to provide. What’s needed now is a conversation that shifts mindsets and breaks down the preconceptions about what’s possible. There must be honesty around existing bias and the reality of this gap in skills and effective support. Only through this, can we explore how the for profit, private and public sectors can work better together to make aspiration a reality. 


Rachel Hill, CEO at Taimahi Trust


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About Taimahi Trust

Taimahi Trust is changing lives for young adults with learning and intellectual disabilities.

Through free on-the-job training, supported by a person-centred coaching programme, we walk alongside individuals with learning and intellectual disabilities to grow life skills for a fulfilling future.

Our model is what makes us unique. With a focus on development – not deficit, our approach builds individual agency and self-determination. Taimahi Trainees benefit from a learning and development curriculum that combines real-life experience with training principles grounded in psychology. It’s a core part of efforts to tackle systemic barriers to employment, self-actualisation, overcoming stigma, and integrating into society.

Taimahi was founded in 2017 as a small coffee cart with two trainees. We’ve come a long way from our roots, but we’re not stopping here. Thanks to support from key community funders, we’re also tackling wider community issues that aren’t just impacting the disability sector, such as food insecurity.

For media enquiries, email: jo@taimahitrust.org.nz