The Impact of COVID-19 on Workers’ Compensation: Insights from the National Academy of Social Insurance Report

The National Academy of Social Insurance has released its 26th annual report on workers’ compensation, providing critical data and insights into the state of workers’ compensation across the nation, including federal programs and the District of Columbia, covering the years 2017 through 2021. This period, significantly impacted by the COVID-19 pandemic, offers a unique perspective on how workers’ compensation systems have adapted to unprecedented challenges.

The report, utilizing data up to 2021, marks the second year of coverage for the COVID-19 pandemic period. It aims to shed light on the early adaptations of the workers’ compensation system to the pandemic, alongside general trends reverting to pre-pandemic norms. Featuring 19 tables, 7 figures, and 5 appendices, the report meticulously details workers’ compensation benefits, costs, and coverage, highlighting the comprehensive nature of the data collected.

A critical observation is the slight decline in covered jobs from 2017 to 2021, attributed largely to the pandemic’s initial impact. However, there was a notable recovery in 2021, with covered wages continuing to grow despite these challenges. The report observes a decrease in total benefits paid over the same period, though employer costs have seen a slight uptick in 2021 after a previous decline. This fluctuation underscores the ongoing adjustments within the workers’ compensation system in response to the pandemic’s evolving impact.

State trends vary, with some states experiencing significant increases in covered jobs and wages between 2020 and 2021, suggesting a robust recovery in certain regions. The report highlights the adaptation of workers’ compensation benefits and employer costs per $100 of covered wages across different states, indicating diverse regional responses to the pandemic’s economic impacts.