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Industry Insights

Rousmaniere: The Burden of Disabilities Falls Unevenly

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The U.S. Bureau of Labor Statistics and the National Council for Compensation Insurance have reported long-running improvements in work injury risk.  Over the past 20 years, the government-tallied rate of lost-time injuries and illnesses has declined by 60%.

Is the American worker really that safer, in a broad sense of that word? When injuries occur, have chances of recovery improved?  And, is the injured worker and her or his household better protected financially where it really counts, which is a sure path back into employment?

In an earlier article  I noted how many factors affect how workers and their employers experience the total burden of work disability, such resulting from a work-caused rotator cuff tear.  No single statistic will tell the story because any single finding tends to break down after comparing demographic groups. 

By stepping back to view the entire disability risk horizon of the working age adult extending into retirement, one sees a sustained while bumpy progression toward lower disability burden since the 1980s.  

Just last week, a medical journal reported that “rates of diabetes-related complications have declined substantially in the past two decades.” 

After looking at many studies of personal health, I concluded some years ago that the typical white middle-class American has been extending her or his quality of life by on average about two months per year.  For instance, my white 94 year-old mother can be said to have added 40 months of quality life since 1994.  My siblings and I are arranging now for her to adapt to user-friendly voice-recognition software that did not exist a few years ago.

Recovery chances specifically for work-injured individuals appear to have improved.  The earlier article noted advances in brain injury treatment.  The single most important medical innovation for injured workers in the last twenty years is probably micro-surgery of the shoulder and knee.  Many sheet rock installers are employable today because of micro-surgery on their rotator cuffs.

These advances in recovery have been thwarted in several ways that are in part demographically driven.  Obesity clearly complicates recovery and might increase work-injury frequency.

To counter this added disability risk, employers can legally put up barriers to limit the invasion of fat into their workplaces when obesity’s functional manifestations, such as shortness of breath, prevent essential job functions. Advanced Ergonomics, which performs pre-placement testing, told me that for one client 9% of normal-weight job applicants failed endurance testing but 51% of morbidly obese applicants failed the test.
 
Obesity rates have soared unevenly.  The history of obesity by state since 1990 shows an across-the-board increase with greater disparity among states. 

With this notion of disparate experience in mind, consider how three major demographic groups have experienced the burden of work disability since the early 1990s. Note how they experience the burden very differently and note how they influence the design of disability protections.

The Old Guard: Male American citizens engaged in full regular employment.
  

It is just a little stretch to say that workers’ compensation system, which has survived largely unaltered as a benefit silo for over a century, was built for this demographic. Serious injury risk; when injured, access to extensive state mandated benefits; and, union muscle at the state house.

The injury risks for the Old Guard have been fading for some time, in part because traditional employment has declined.  Production, craft, machine operators and assemblers declined as share of civilian employment from 14.7% in 1980, to 10.8% in 1990 to 7.6% in 2005.  Work-site safety has also improved.  The entire manufacturing sector’s lost-time injury rate plummeted from 3.2 injuries per 100 workers in 1994 to 1.1 in 2012, for an average annual decline of over 3%. 

                          Percentage of Male and Female Employment in Selected Sectors, 2010


Construction

Production

Service

Sales and Office

Male

9.5

7.9

14.5

16.9


Female

0.3

3.2

21.3

32


Source: Bureau of Labor Statistics, Women in the Labor Force: A Databook. February 2013.

The Old Guard has thus enjoyed a huge reduction in injury risk. But it has suffered a big increase in disability burden in another way. Job opportunities at the accustomed pay scale have shrunk for those who are seriously injured.  The chances for a worker concerned about a future injury to transition out and into an equal paying job are more limited. 

Old Guard jobs shrunk as percentage of total jobs



1950

1980

1990

2005

Production, craft


5.1

4.8

3.5

3.0

Trans, const. mining, mechanics, farming


29.2

21.6

18.8

18.2

Machine operators, 

assemblers

12.6

9.9

7.3

4.6


Source:  Autor D and Dorn D, The growth of low-skill service jobs and the polarization of the U.S. labor market. American Economic Review 2013, 103(5): 1553–1597

The New Guard: Female American citizens engaged in full regular employment. 

This is the leading demographic today because it exerts the most influence over societal expectations for what a disability safety net is all about. In effect, this group is setting the rules; it has been doing that for some time.  This demographic did not, on the whole, experience the high risk of the Old Guard’s jobs.  Work is bifurcated between office work, with a workers’ comp manual rate in Illinois today of 21 cents per $100 of payroll, and female dominated assistance jobs, such as nurses aides, whose comparable manual rate of $3.33.  (The Old Guard’s job of building autos is at $6.65.)

Work injury risk for this demographic faded into the tableau of a range of absence and career risks, some disability related, some related to the role of the female worker as a “PROP” (person responsible for other people.)  The demographic may have union representation but it favors something it considers better: influence over federally mandated protections, fortified by employment law litigators.  And it has hit some home runs in containing the burden of disability, such as the Americans with Disabilities Act amendments of 2008 and the Family and Medical Leave Act.  

Rise of the female PROPS

Percentage of married mothers who participated in the work force


Year

1969

1989

2004


% in labor force

38.9

65.8

68.4



Source:  Juhn C and Potter S,  Changes in labor force participation in the United States. J Econ Perspect 2006 20 (3): 27-46

Fortune 100 companies construct benefit programs with this demographic.  Gradually, they are folding in their workers’ compensation programs by silo removal.  Look for evidence that employers use a universal job accommodation program for all employees, all disabilities.

The Marginal Worker: low wage immigrant workers in regular and irregular employment. 

Foreign-born workers made up 9.3% of the civilian workforce in 1990. Today, I estimate that one out of every five work injuries today is sustained by an immigrant.  Perhaps a third of these injured workers are naturalized citizens; a third documented foreign nationals; and a third undocumented workers. A half of this demographic is Hispanic, but recently Asians appear to be adding to the demographic in larger numbers. Low wage immigrant workers as a group face twice the injury risk at work compared to native-born workers with high school only or less education.

Percentage of jobs held by immigrant workers

                            Category

Lost time injury rate

% held by immigrants

                             All jobs

1.05

16


            Jobs requiring HS or less education

1.31

17


   High risk jobs with low educ requirements

1.91

28

Source: Bureau of Labor Statistics, American Community Survey

The burden of work disability for this demographic has likely increased, or at least not significantly declined, in the past twenty years.  True, overall work safety has improved, but perhaps not as much among many of the worksites that employ this demographic. And work safety in irregular work, such as car washing and off the books personal aides, is as uncertain as is any worker protection in the underground economy. 

The 8 million undocumented workers in this demographic face severe work disability risks, perhaps comparable to times before the advent of workers’ compensation in the 1910.  These workers can’t easily transition out to safer work.  And they face formidable barriers to asserting their worker protection rights. For an extreme case, in Florida it’s effectively a crime for an undocumented worker to file a workers’ compensation claim, because using some one else’s social security number as part of the filing is a criminal act.

This demographic has no clout in state or federal agencies.  Its burden of work disability may be worsening. It is trapped.

In conclusion, the burden of work-related disability, past, present and future, needs to be examined in light of major demographic shifts, not just the worksite safety improvements and advances in medicine.  How disability safety nets are designed cannot be ignored.  Nor can the marginalization of workers be ignored.    

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