In many globalized countries these days, including much of Europe and America, there is the problem of an aging workforce. In Germany, many of the auto plant workers are nearing retirement age, and the skilled labor to replace them is in critical shortage. Similar challenges exist in the US, within the next decade, workers’ compensation laws will continue to change and adapt to these new situations.
According to US Census data, employees in the United States are aging rapidly, and many people over the age of 55 are still working. These numbers have increased by more than 50% in the last six years. With this in mind, there is a way for employers and employees to prepare by really changing the work environment, as well as taking precautions with more safety initiatives. This is where employers’ and workers’ unions have a unique situation where they can really work together for the betterment of both parties. In addition, as the prices of raw materials and labor in the market will fluctuate, trends in workers’ compensation policy will also have to change. Group health insurance plans will increase, forcing workers’ compensation insurance to change as well as the largest corporations force the insurance industry to adapt as well.
Along with the problem of worker maturation, this presents a new field of pitfalls, which then cause essential financial problems in the formation of insurance policies. In addition to their employers, older workers need to learn new ways to use modern assistive technology. If incidents do occur then they are more successfully dealt with in workers’ compensation statements. While older staff are more experienced and have fewer on-the-job injuries, they are more expensive from a financial standpoint than newly hired younger staff. This provides an incentive and opportunity for employers to find younger workers to replace them. However, with changes in overall demographic trends, the gap between the aging workforce and its replacements continues to grow. The increase in age-related health problems will also produce changes in workers’ compensation.
According to the US Bureau of Labor Statistics, in 2004, states paid more than $56 million to help workers; annually that amount continues to rise. In nearly all of these cases the injuries were physical incidents while the worker was performing his or her official job duties at the assigned workplace. Nearly half of the insurance budget set aside by states is used just for health care bills, and during 2007, workers’ compensation payments increased to nearly $70 million. The statistics also emphasize that the number one issue in workers’ compensation claims was, again, physical injuries.
The most beneficial way for the system to improve is to actually favor older workers. However, as the trends indicate, the system is in need of a serious overhaul. For some employers, what might have been adequate in the past may not be enough in the future. If workers’ compensation laws favor assistive technology, the costs will increase for employers. This may be reflected in the national economy as more regulations are applied in the different states. Assistive technology may have higher costs for employers, but it will benefit society as a whole by reducing our government’s payments in the form of compensation for injuries.