Changes in the Workforce and Their Impact on Workers’ Compensation Outcomes

By Sebastian Negrusa

August 31, 2023 Related Topics: COVID 19, Indemnity Benefits, System Review

As the U.S. economy experienced important disruptions in the last few years, the workers’ compensation system has likely been affected in various ways. This new WCRI study provides insights into how recent economic and demographic changes have influenced the workers’ compensation system. It also provides forecasts of how these changes will likely affect workers’ compensation outcomes in the near future, under a “no disruption” (or baseline) scenario and under several alternative scenarios.

The size of the effects of the economic, workforce, and demographic characteristics on the workers’ compensation system suggests that the trends in this report are important to watch as they may continue to affect workers’ compensation outcomes. The uncertainty experienced by workers during periods of economic turmoil could be mitigated by different return-to-work approaches.

Changes in the Workforce and Their Impact on Workers’ Compensation Outcomes. Sebastian Negrusa. August 2023. WC-23-30.


Copyright: WCRI

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Research Questions:

  • What impact did increases in the unemployment rate, wages at injury, or age at injury have on the average indemnity payment and temporary disability duration?
  • Did increases in job turnover over the last few years contribute to a faster occurrence of work-related injuries?
  • What impact would an economic recession in 2024–2026 have on indemnity payments and the duration of temporary disability?

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