Shrinking Labor Force Tied To Spike In Disability Claims

Though the unemployment rate in the U.S. has dropped from its peak of 10 percent in 2009, some evidence suggests the increase in disability claims may be the cause, rather than a strengthening economy. Between 2007 and 2012, applications for disability insurance rose from 11.2-per-1,000 working people to 14-per-thousand, part of the correlation between disability claims and unemployment that has been growing since DI eligibility requirements were eased in the mid-eighties. The author suggests that, given that only four percent of DI beneficiaries return to work within 10 years, the growing trend could pose long-lasting issues for the American economy.