An unemployment rate below 4% nationwide and projected job growth of just under 2% for 2018 are just two factors that could impact the workers compensation sector, according to a second-quarter economic impact report issued Wednesday by the National Council for Compensation Insurance.
The report used U.S. Bureau of Labor Statistics figures showing an increase of 155,000 jobs in March and preliminary estimates of 159,000 and 223,000 in April and May along with gross domestic product growth showing the seasonally adjusted annual rate of 2.0% in the first quarter of 2018, among other sources. It is a quarterly glance at factors that typically affect workers comp, according to the report.
Actual job increases in April and May were 164,000 and 223,000, respectively, according to the U.S. Department of Labor.
The NCCI report found that:
Employment and wage growth could lead to more premiums for workers compensation insurers, but may also contribute to increased comp claim frequency and severity, the National Council on Compensation Insurance Inc. said in its quarterly economics briefing.