WC Costs Grew Faster Than Wages

Workers‘ compensation costs for employers grew at a faster percentage than wages did in 2001, mostly because the economic downturn discouraged rapid salary increases, according to a new study. The report, released today by the National Academy of Social Insurance, a Washington, D.C.-based nonprofit research group, also pointed out that the continuing economic volatility has resulted in the slowest growth in U.S. wages in more than a decade. According to these research findings, this is the first time that workers‘ comp benefit levels rose at a faster percentage than wages since 1992. It was also the first time since 1993 that employers‘ costs for workers‘ comp grew faster than wages. In 2001, overall wages grew by 2.4 percent, the study found.