Discrimination is preventing tens of thousands of people with schizophrenia finding or keeping jobs.
A new study has found that just 8% of those with the condition are in employment.
The Work Foundation said 25% of those with the illness could work with help from employers, health professionals and the Government.
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People with the condition were able and willing to work, but faced barriers including a lack of understanding, stigma and fear, said the report.
Professor Stephen Bevan, of The Work Foundation, said: "We must see a national plan developed which includes ministers from the Department of Health and Department for Work and Pensions boost employment rates among people with schizophrenia by 25% within 10 years."