This new FlashReport shows how indemnity benefits and medical utilization changed during the prior economic downturn and subsequent recovery. It also presents multiple measures describing changes in the labor market that are likely to shape trends in workers’ compensation payments for injuries in 2020 and 2021.

We believe that looking at past economic recessions is instructive for gaining insights into the relationships between economic conditions and workers’ compensation payments. These relationships could help the understanding of trends in compensation payments during the pandemic, though there are substantial differences between the COVID-related recession and previous recessions.

The report builds upon a presentation delivered at WCRI’s 2021 virtual conference. It highlights published data from external sources on labor market conditions available through August 2021, reflecting statistics through June or July 2021. Information on workers’ compensation payments comes from previously published data from WCRI’s CompScope™ Benchmarks and CompScope™ Medical Benchmarks studies covering 18 states.

WCRI FlashReport—Indemnity Benefits, Use of Medical Care, and Economic Conditions. Bogdan Savych. October 2021. FR-21-03.

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