Editor: This helps to explain the declining labor force too.
Friday, July 6, 2012
Gaming the System… Disability Edition
In my post outlining the decline in employment (excluding teens), reader Mike pointed out another interesting phenomenon:
One of the stories I read about this month’s BLS report dealt with the rise in people on disability. I thought charting this over a few dozen years and several recessions might tell an interesting story.
Unfortunately, the BLS only reports this data going back to 2008, but the most recent data shows an interesting trend. From the looks of it, we have what appears to be a not-so-coincidental mirror image between the decline in those unemployed with the rise in the number of people not working via claims of disability. I know next to nothing about disability, but my guess is individuals whose employment benefits have run out, have been increasingly taken advantage of disability as a replacement.