The Effects of the Aging Workforce on Workers’ Compensation

Workers in the United States are remaining in the workforce for longer. According to the U.S. Bureau of Labor Statistics, the labor force of people aged 75 years and older is expected to grow by 96.5 percent between 2020 and 2030, while the labor force of workers ages 16 to 24 is projected to shrink by 7.5 percent during that same time period. Additionally, all baby boomers will be at least 65 years old by 2030, and 9.5 percent of the civilian workforce is projected to be older than 65. This is up from 5.8 percent in 2016.

The higher number of older workers means an increase in the costs of workers’ compensation claims. As people age, they generally experience a higher number of age-related pre-existing health conditions, such as arthritis, that may make them more susceptible to a workplace injury. Additionally, it may take them longer to recover from an injury, and return to the work. This means higher medical costs due to longer periods of treatment, as well as lengthier periods of payment of lost wages due to the longer amount of time it will take the older employee to return to work. Additionally, older workers may not recover as fully as younger workers, which could also mean higher permanency awards.

In order to decrease these costs, employers may want to implement wellness programs to encourage healthy lifestyles in and outside of the workplace, design work environments that limit repetition by incorporating various job tasks, provide ergonomic assessments to ensure proper workstation set up and implement return-to-work programs that help injured workers ease back into their positions rather than remaining out of work for an extended period of time.

Written by attorney Christina A. Hayes.