Today’s issue of WorkCompRecap features the release of a new edition of NCCI’s Quarterly Economics Briefing, which examines the current state of the economy and the implications for workers’ comp insurance.
Key highlights from this edition included that job creation stayed strong through Q2 and jumped in July, with nearly half a million new jobs added in that month alone. While several indicators point to a coming slowdown in hiring demand, it was not evident in employment data through July. NCCI also notes that current price inflation is not adversely impacting workers comp so far, noting that payroll as an exposure base adjusts automatically for wage inflation and wage-related benefit increases; and medical price increases have not jumped along with general inflation. However, the main effect of a future downturn or recession, should either occur, would be a decline in workers’ comp premium and benefit payments commensurate with the fall in employment.