Vocational Rehabilitative Services NAICS 624310

Jan 9, 2026 - Commercial Bankruptcies Soared In 2025

• Commercial bankruptcies increased in 2025, rivaling levels not seen since the immediate aftermath of the Great Recession, according to S&P Global Market Intelligence. Vocational rehabilitative services may be impacted if hiring by client firms decreases due to bankruptcy filings. At least 717 companies filed for bankruptcy through November. That’s about 14% more than the same 11 months of 2024, and the highest number since 2010. The increase in filings was greatest for manufacturing, construction, and transportation firms. Consumer-oriented businesses with discretionary products or services like fashion or home furnishings represented the second-largest group. The second group usually tops the list and includes many retailers.
• Several states are trying to address vocational rehabilitation program funding shortfalls that may affect service availability. Idaho needs to allocate $2.7 million in state funding to fully access emergency federal funding available for employment rehabilitation for people with disabilities. Wisconsin's program is funded through a federal-state partnership. The federal government covers nearly 79% of costs, while Wisconsin must provide 21%. The state’s share falls $4.6 million short of what’s needed in the current fiscal year to serve everyone seeking services.

• The US Department of Labor (DOL) withdrew a proposed rule that would have ended the long-standing Section 14(c) program, which allows certain employers to pay individuals with disabilities below the federal minimum wage. The DOL cited ongoing concerns that eliminating the program could increase unemployment or reduce services for individuals with significant disabilities. Community Rehabilitation Programs, which hold the majority of 14(c) certificates, warned that closure or reduction in operations could follow if the rule were enacted. Critics of the rule also included lawmakers. Members of the US House Committee on Education and the Workforce questioned whether the DOL had the legal authority to unilaterally end the program, emphasizing that any changes should come through Congressional action. More than a dozen states have ended subminimum wage practices through local legislation, but the DOL emphasized that federal statutory obligations under Section 14(c) remain intact unless changed by Congress.
• Vocational rehabilitative service industry employment and average wages for nonsupervisory employees increased slightly during the first eight months of 2025, according to the US Bureau of Labor Statistics. Vocational rehabilitation service industry revenue increased 6.4% year over year and 5.6% quarter over quarter during Q2 2025, according to the US Census Bureau. Vocational rehabilitative service sales are forecast to increase at a 3.99% compounded annual rate from 2025 to 2029, slower than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc. Community vocational rehabilitative service revenue typically comes from contracts with state vocational rehabilitation agencies, which authorize billable services. Fee-for-services contracts base payment on hourly, daily, half-day, or other unit-based rates.