Today’s issue of WorkCompRecap features the release of a new report from WCRI that found recent economic trends and disruptions caused by the COVID-19 pandemic have had important impacts on the workers’ compensation system.
The new study provides insights into how recent economic and demographic changes have influenced the workers’ comp system and forecasts how these changes will likely affect workers’ comp outcomes in the near future, under a “no disruption” (or baseline) scenario and under several alternative scenarios. Key areas addressed included the impact increases in the unemployment rate, wages at injury, or age at injury have on the average indemnity payment and temporary disability duration; whether increases in job turnover over the last few years contributed to a faster occurrence of work-related injuries; and the impact an economic recession in 2024–2026 woudl have on indemnity payments and the duration of temporary disability.