Both literature and public policy on work inclusion has shifted towards the demand-side, which recognises that employer engagement is crucial to increase labour market participation and sustained employment for vulnerable groups. Research shows, however, that the implemented demand-side policies have been less than effective. This opens a discussion about barriers to implementation in terms of relevant employer characteristics. By use of Norwegian register data, this article estimates the impact of employer size and extent of implemented disability policies on probability of sustaining employment for workers with reduced capacity, finding that employer size negatively impacts probability of sustaining employment. Extent of implemented disability policies positively impacts probability of sustaining employment, irrespective of employer size. I argue that systematically considering these characteristics can help identify how and where to improve the position of workers with reduced capacity and discuss the implications for public policy.

Chronic disease, mobility limitations and low physical functioning are determinants of an earlier age of retirement. Therefore, long-term population trends in these factors may have an impact on the proportion of individuals near traditional retirement age who continue to work. Our objective is to develop a projection model that accounts for trends in these factors in order to estimate the proportion of the population aged 55–74 with the capacity to participate in the labour force. We used logistic regression models to quantify how chronic disease, mobility and functional status predict labour force participation among individuals aged 55–59. Next, we obtained estimates of the population prevalence of each of these predictors for the years 2010–2050. We then used estimated coefficients from the logistic regression models to predict the age-specific probability of capacity for work up to the age of 74. We find that population capacity for work depends on trends in disability and on level of education. Future population capacity for work depends on trends in functional limitations primarily in the population with lower levels of education. Changes in functional limitations, changes in the environment, technology and social policy targeted towards individuals with lower levels of education could result in mitigation of future decreasing capacity for work in the population near retirement age.

In welfare societies, disability pensions or incapacity benefits provide income security to people who, due to health problems or disability, are assessed as being unemployable. However, it is sometimes possible for people on disability pensions to work, for instance on a voluntary basis in and on behalf of associations of disabled people. This article applies perspectives on employability and discusses whether voluntary workers, like representatives of associations of disabled people, could have been employed in the ordinary labour market or whether there are definite characteristics of voluntary work which allow their capacity for work to be utilised.