The joint inspection team, from Ofsted and health watchdog the Care Quality Commission, found that pupils with SEND make weak academic progress, attend less often and are excluded more frequently than other pupils in Birmingham and all pupils nationally.
"Not enough young people who have SEN and/or disabilities are entering employment or supported employment," a letter outlining the findings states.
"The proportion of adults with learning disabilities in paid employment is below the national average."
Inspectors said leaders have not ensured that the 2014 reforms have had a marked impact on improving provision and outcomes for children with SEND.
"Until very recently, health, education and social care teams have not worked together effectively at a strategic level," the letter states.
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