Vocational Rehabilitative Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 4,000 vocational rehabilitative services providers offer job counseling, job training, and work experience to unemployed and underemployed persons, persons with disabilities, and persons who have a job market disadvantage because of lack of education, job skill, or experience. The industry includes job training facilities and sheltered workshops (which employ adults with physical or intellectual disabilities).
Dependence on Government Funding
The vocational rehabilitative (VR) services industry is highly dependent on a mix of federal and state government funding.
Heavy Caseloads
Heavy caseloads, particularly in urban centers, can compromise the quality of services, which affects job placement.
Industry size & Structure
The average vocational rehabilitative services provider employs about 70 workers and generates $4 million annually.
- The vocational rehabilitative services industry consists of about 4,000 firms that employ over 281,000 workers and generate about $16 billion annually.
- The industry is fragmented with the top 50 companies accounting for about 30% of industry revenue.
- More than 70% of establishments are tax-exempt organizations.
- State agencies administer services and funding for vocational and rehabilitative services. Large non-profit organizations like Goodwill and Easter Seals also offer vocational rehabilitative services.
- In the US, 13% of civilians live with a disability, according to the Disability Statistics Compendium.
Industry Forecast
Vocational Rehabilitative Services Industry Growth
Recent Developments
Mar 6, 2025 - Modernizing Vocational Rehabilitation Can Unlock Opportunity
- Vocational rehabilitation (VR) professionals are constrained by outdated systems, red tape, and geographic limitations, according to research from Western Governors University (WGU) and vocational rehabilitation solutions firm Daivergent. Vocational rehabilitation professionals know exactly what their clients need, but they’re working with limited resources and outdated tools that make it harder, not easier, to get people into great jobs, according to Byran Dai, co-founder and CEO of Daivergent. About 38% of working-age individuals with disabilities have jobs, compared to 77.3% of their non-disabled peers, according to the WGU researchers. This leaves 10.7 million ready-to-work individuals unemployed while industries struggle to fill roles.
- Vocational rehabilitation agencies should pay for out-of-state services including postsecondary programs for those with autism or intellectual disabilities if similar options cannot be found in state, according to guidance from the US Department of Education’s Rehabilitation Services Administration. The guidance says that if a vocational rehabilitation recipient is seeking services that fall within the needs identified in their individualized plan for employment, or IPE, the agency should accommodate an out-of-state option so long as no comparable in-state option exists. Offerings that individuals with disabilities might seek to access farther from home include postsecondary programs designed to address the specific needs of students with autism or intellectual disabilities, for example, or residential training centers for individuals who are blind, officials said.
- Proactively recruiting workers with disabilities leads to greater job success, with 50% of successfully performing employees having been recruited through intentional efforts, according to Andrew Houtenville, PhD, Professor of Economics and Research Director at the University of New Hampshire. "Partnering with disability organizations and state vocational rehabilitation agencies is an effective hiring strategy, with 84% of companies finding these partnerships successful in filling positions." Providing workplace accommodations is a key factor in helping employees with disabilities perform effectively in their jobs. "Workplace accommodations, such as flexible schedules and assistive devices, play a critical role in the success of employees with disabilities, and most can be provided with little to no cost,” explained John O’Neill, PhD, Director, Center for Employment and Disability Research at the Kessler Foundation.
- Vocational rehabilitation service industry revenue increased 5% year over year and 0.9% quarter over quarter during Q3 2024 to $4,576 million, according to the US Census Bureau. Vocational rehabilitative service sales are forecast to increase at a 4.88% compounded annual rate from 2024 to 2028, faster 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. Vocational rehabilitative service industry employment and average wages for nonsupervisory employees increased slightly during the first month of 2025, according to the US Bureau of Labor Statistics.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.