01 Dec Does North Carolina Workers Comp Have A Gloomy Future Ahead?

It’s the elephant in the room that nobody wants to talk about. With the job market struggling so mightily, what’s going to be the resulting effect on North Carolina Workers Comp? After going strong for so long (the workers’ compensation system celebrated its 100 year anniversary this year), there are tough obstacles ahead with our country struggling to dig itself out of a deep recession.

Did you know that statistics show that there are about 25 million Americans vying for just 3.5 million available jobs? That’s around 7 applicants for every 1 job opening! That goes to show you that the labor market is currently in a crisis, and even once the country climbs its way out the lasting consequences are going to be evident.  So what’s the effect of high unemployment rates on workers’ compensation?

The workers’ compensation system along with other unemployment, job-related programs now have to focus more-so on helping pay for extended unemployment. In addition, questions are popping up for all players in the workers compensation market. Employers are beginning to question how they can avoid litigation situations when dealing with unhappy former employees desperate to continue receiving their workers comp. Workers are starting to wonder with such a stingy job market if they’ll ever be rehired after injury, and therefore if they should focus more on extending their workers compensation.

But the main question that is being asked by all is how will the system cope with the recession crisis in the long run? However the only answer to that question lies in the future, once we finally see how it all plays out.

Need more information on North Carolina workers comp or business insurance? Call Spivey Insurance Group today at 877-318-5951 or visit our website for information on all things Carolina insurance!