Disability Ranks Continue to Surge Under Obama

Daily News Article   —   Posted on April 8, 2013

image827(by John Merline, Investors Business Daily) – Almost as many people signed up with the federal government’s permanent worker disability program as got jobs in March, according to two sets of government data, continuing a troubling trend throughout the Obama recovery.

Last month, 81,804 workers left the workforce to join the Social Security Disability Insurance (SSDI) program. So far this year, nearly a quarter million workers have joined the program.

Over the past four years, 4 million left the workforce to go on disability. Even after accounting for those who dropped out of the program because of death or retirement, the ranks of the disabled have shot up more than 1.4 million under Obama.

Today, the ranks of the disabled number 8.8 million, and when you add in children and spouses, the number climbs to 10.9 million.

Economists generally agree that the anemic recovery under President Obama has driven legions of workers who have been unable to find work to seek out the SSDI program.

“When opportunities for employment are plentiful, some people who could quality for (disability insurance) benefits find working more attractive,” the Congressional Budget Office noted in a recent report on the program, adding that “when employment opportunities are scarce, some of these people participate in the DI (disability insurance) program instead.”

Since the recovery officially started in June 2009, more than 9 million have dropped out of the labor force, either because they retired, gave up looking for work, or signed up with a program like SSDI. This year alone, the number of people who aren’t in the labor force shot up 959,000.

As a result, the labor force participation rate, which measures the number of people working or actively looking to the entire working age population, has fallen to 63.3%, from 65.7% at the start of the Obama recovery. That’s the lowest level for this indicator since 1978.

The concern about so many signing up for disability is that almost none ever end up returning to the workforce. It’s a problem the even the White House has expressed concern about.

In an economic report issued in 2011 the administration noted because “workers on SSDI rarely return to the labor force,” this can result “in a loss to society of the economic contribution those workers could have made.”

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Background

In December 1968, 1,295,428 Americans collected disability and, according to the Bureau of Labor Statistics, 65,630,000 worked full-time. Thus, there were about 51 Americans working full-time for each person collecting disability at that time. In January 1997, the last time the number of disability beneficiaries declined, 4,385,374 Americans collected disability and 104,900,000 worked full-time. Thus, there were then about 24 Americans working full-time for each person collecting disability.

In March 2013, with a record 8,853,614 Americans collecting disability and 115,841,000 working fulltime, there were only 13 Americans working full-time for each person collecting disability.

  • DISABILITY: Short term and permanent disability explained:

    Short term disability is a type of insurance that pays a percentage of an employee’s salary for a specified amount of time, if they are ill or injured, and cannot perform the duties of their job. Coverage usually starts anywhere from one to 14 days after an employee suffers a condition that leaves them unable to work. Many times, employees are required to use sick days before short term disability kicks in, if it’s an illness that keeps them out of work for an extended period of time. This is why there is usually a different policy for short term disability for sickness versus an injury. Generally, short term disability coverage is paid by the employer. Companies are required by law to provide workers comp and unemployment, and many provide disability insurance for their employees as well.

    The definition of disability under Social Security is different than other programs. Social Security pays only for total disability. No benefits are payable for partial disability or for short-term disability. That includes benefits for maternity leave.

    "Disability" under Social Security is based on your inability to work. We consider you disabled under Social Security rules if:

    This is a strict definition of disability. Social Security program rules assume that working families have access to other resources to provide support during periods of short-term disabilities, including workers' compensation, insurance, savings and investments.

    The Social Security and Supplemental Security Income disability programs are the largest of several Federal programs that provide assistance to people with disabilities. While these two programs are different in many ways, both are administered by the Social Security Administration and only individuals who have a disability and meet medical criteria may qualify for benefits under either program.

    Social Security Disability Insurance (SSDI) pays benefits to you and certain members of your family if you are "insured," meaning that you worked long enough and paid Social Security taxes.

    Supplemental Security Income (SSI) pays benefits based on financial need.

    When you apply for either program, we will collect medical and other information from you and make a decision about whether or not you meet Social Security's definition of disability.
    (from Disability.gov, the federal government website for comprehensive information on disability programs and services in communities nationwide.)