People with psychiatric disabilities in Taiwan usually have very low employment rates and short job tenure. Although the government has implemented related laws and promoted supported employment for people with psychiatric disabilities to protect their employment rights, they still face many barriers and difficulties in finding and keeping a job. In fact, job sustainability is the most challenging part in vocational rehabilitation. For many people with psychiatric disabilities, the episodic nature of mental illness, lack of support, low self-esteem and lack of confidence all affect job sustainability. Many often experience employment discrimination from employers and colleagues as well. Additionally, employment specialists encounter many challenges providing supported employment services as well. Therefore, the objective of this paper is to analyze the current employment status of people with psychiatric disabilities in Taiwan, explore difficulties and barriers in job retention, and provide practical recommendations for improving sustained employment for people with psychiatric disabilities.