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Friday, August 27, 2010

Slow Economic Grown Forecasts Dismal Future for Workers Compensation

Quarterly Gross Domestic Product (year-on-year...
The announcement today of slower economic growth predicts a gloomy future for the US Workers' Compensation industry. A 2nd Quarter growth rate of 1.6% is far below the minimum 2.5% rate necessary to halt the increasing numbers of unemployed workers.

The US workers' compensation industry is dependent on premiums, based on wages, paid to workers. A lack of workers on payrolls stalls the economic engine necessary to fund the system. The predictable response is an increase in rates chargeable to fewer employees in a time when the country faces a predictable deflation rate in advance of potentially soaring rates based upon inevitable inflation resultant from increased governmental spending. Seven more years, at a minimum of high unemployment has been predicted.

Compounding the scenario is the fact that the historical pattern of the past will most likely not allow for a major rebound as the facts of economic growth, globalization and transfer of manufacturing overseas has devastated the base of growth for the national workers' compensation system. 

Click here for more information on how Jon L Gelman can assist you in a claim for workers' Compensation claim benefits. You may e-mail Jon  Gelman or call 1-973-696-7900.

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