Toil and Trouble: Older Workers and Workers Comp
A couple of new studies reinforce a number of concerns that we continue to raise concerning the aging of the American workforce. NCCI has released a study (PDFs) that specifically addresses the potential impact of an older workforce on workers compensation costs. Not surprisingly, they find that older workers get injured less often than younger ones, but when they do get hurt, their recovery times are slower and the cost of the claims is higher. The NCCI study focuses on the specific injuries that generate the most dollar losses among older workers: rotator cuff strains, lumbar disc problems and carpal tunnel syndrome. (We alerted readers in a prior blog that workers over 50 should be very careful when performing jobs above the shoulder level.)
The specific risks associated with older workers need to be examined in the context of changes in the overall workforce. The Workers Compensation Research Institute (WCRI) has published an interesting study on Return-to-Work Outcomes in four key states: California, Massachusetts, Pennsylvania, and Texas. WCRI found that workers over the age of 55 who are injured are 12 to 35 percent less likely to return to work when compared to workers between the ages of 25 and 39. In addition, these older workers are out of work 62 to 276 percent longer. (I would like to quote from the study at length, but the information is proprietary and protected by copyright, so I am limited to quoting from their press release.)
One Side of the Story
WCRI’s study included data from approximately 750 injured workers in each of the four states. The data is based on workers with more than seven days of lost time who reported having a substantial return to work (they returned for at least a month) or who reported having no substantial return to work during this time. I think it is worth noting that the data is based solely upon worker interviews, which took place three and one half years after the injury. At some point I would hope that WCRI would expand their study to include interviews with the former employers of the injured workers. I would really like to know whether the employer tried to get the injured employee back to work; whether there were modified duty opportunities available to the worker; and whether the employer maintained any contact with the employee during the disability. In a word, how hard did the employer try to get these people back to work?
By 2012 there will be over 10 million more workers older than 55 than there are in the current workforce. As the “baby boom” generation continues to age -- and as it is confronted with the financial realities of retirement -- the number of workers age 55 and older is projected to grow by 49 percent. This is four times the growth rate projected for the overall U.S. labor force. Turmoil in the economy may actually increase these numbers: failed pension plans, inflation, instability in an eroding middle class all increase pressure on older people to keep on working.
Education Levels and Duration of Disability
Here is the real bombshell in the WCRI study: a worker’s education level is a key factor in the likelihood of return to work and the duration of the out of work spell. Workers with a high school education returned to work 10 to 60 weeks faster than those with less education. In other words, one of the stongest predictors of no return-to-work is a lack of education: for workers with grade school education only, the duration of disability is significantly increased.
We are seeing a convergence of factors that may indeed become a "witches brew" for trouble in workers comp. We have an aging workforce. People are under pressure to work deeper into what used to be retirement years. Many older workers lack formal education, so they are less likely to have readily transferable skills. When their aging bodies fail, what are they going to be able to do? The pressure to keep on working might be fine for those of us doing white collar work, but what does that bode for the millions who must depend upon their physical strength and flexibility to perform the work? What would you do if you were in your 60s, after a lifetime of hard work, confronted with chronic problems in your knees and shoulders, with no pension and little saved for retirement? What exactly are your options?
In a future posting, we will share some thoughts on the steps employers can take to minimize the risks in employing older workers.
