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Friday, March 8, 2013

Jobs....a long way to go

The workers' compensation market/business is dependent on employment. The newly released statistics, while appearing encouraging, might not be so after all.

Despite today's promising numbers report from the US Bureau of Labor Statistics, some believe that the US has a very long way to go to get to full employment. Repeating the golden years is a very difficult road.

I commented a few years ago (Is The Recovery Of The Workers’ Compensation System An Illusion?) that workers' compensation is not necessarily anti-cyclical, ie. does not necessarily do better in down markets. That has been reflected in decreased manufacturing and insurance carrier insolvencies.

Yesterday morning I spoke with yet another eminent claimant's lawyer who continues to look in the rear view mirror and see a bright future for workers' compensation. Unfortunately, I think that opinion is quiet misplaced. 

Unless the system is drastically restructured, the days of workers' compensation as we now know it, are numbered. That does not mean that the creative spirit that existed in crafting the original concept in 1911 could not be reignited to formulate an even better functioning program.