Today’s issue of WorkCompRecap features the release of a new Insights report from NCCI that examines the issue of wage inflation, and how it impacts the workers’ compensation system.
NCCI noted that as we emerged from the COVID-19 pandemic, a labor shortage became apparent, and to lure workers back to the workforce, wages needed to increase. As a result, all economic sectors have experienced wage growth, and lower-wage workers are seeing the fastest percentage growth among all workers. Key findings from the report included that wages grew fastest in recent years for low-paying jobs, and the growth was particularly strong in 2021; amid the “Great Reshuffle”, wage growth is seen varying significantly by economic sector; nonuniform wage inflation is more impactful in states with high minimum weekly indemnity benefits, or low maximum weekly indemnity benefits.