Disability and Employment
Statistics

The second leading cause of disability claims is mental disorders and depression types of claims. This includes anxiety and rehab for substance abuse. Be sure to read the fine print on your policy as some policies have limitations for these kinds of claims.

Personal behavior and lifestyle choices that lead to problems like obesity are rapidly growing factors in causing long-term disabilities. About a quarter of all adults in the U.S. are obese, according to the Centers for Disease Control and Prevention. Here are some important disability statistics to frame your understanding of the state of disability insurance in the US:

How many American workers are disabled?

The number of U.S. workers experiencing a long-term disability continues to grow at an alarming rate. On average, people with disabilities accounted for 4% of employed Americans in 2022, according to the Bureau of Labor Statistics (BLS)

Disability Often Keeps People Out of Work:

• For all age groups, the employment-population ratio is much lower for people with a disability than for those with no disability.
• Unemployment rates are much higher for people with a disability than for those with no disability across all educational attainment groups.
  Persons with a Disability: Labor Force Characteristics Summary – 2023 A01 Results (bls.gov)
• The average long-term disability absence lasts 2.5 years.
  Commissioner’s Individual Disability Table A

Disability Statistics on Financial Hardship:

• A large-scale study linking cancer registry data and bankruptcy filings in western Washington state found that cancer patients were 2.65 more likely to go bankrupt than people without cancer, with younger (under age 50) cancer patients having the highest rates of bankruptcy.
  https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6366487/
• Disability causes nearly 50% of all mortgage foreclosures, 2% are caused by death.
  Health Affairs, The Policy Journal of the Health Sphere, 2 February 2005

Most American Workers Can’t Afford to Become Disabled:

• Only 40 percent of US households have enough in liquid savings to cover at least three months of their recurring expenses, and only 28 percent can cover at least six months.
  The Fed – Money in the Bank? Assessing Families’ Liquid Savings using the Survey of Consumer Finances (federalreserve.gov)
• A 2019 study of consumer bankruptcy filings found that 77.8% of debtors cited income loss as a contributor to their bankruptcy. This included 44.3% specifically citing medically-related work loss as a contributor.
  https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6366487/
• The average American savings rate in October 2008 was 2.4% of disposable personal income, compared to 1985 when the savings rate was 10.3%.
  A Guide to the National Income and Product Accounts of the United States (NIPA)

Disability is More Common Than You Think:

• 5.6% of Americans in the work-force will experience a short-term disability (usually six months or less) every year.
• 25% of today’s 20-year-olds will be out of work for at least a year because of a disability, before they retire.
• At 25%, pregnancies are the most common reason for short-term disability claims.
  Disability Statistics; Chance of Becoming Disabled – DisabilityCanHappen.org

Social Security and Workers’ Compensation May Not Be Adequate:

• Workers’ Compensation only covers time away from work if the disabling illness or injury was directly work-related. In 2019, less than one percent of American workers missed work because of an occupational illness or injury.
  https://www.bls.gov/iif/oshwc/osh/os/summ1_00_2019.htm
• From 2009 to 2018, only 32 percent of Social Security Disability Insurance (SSDI) claimants had their applications approved:  21 percent at the initial application stage and the remainder after a reconsideration or appeals process.
  https://www.ssa.gov/policy/docs/statcomps/di_asr/2019/sect04.html#chart11
• The backlog of appeals cases was more than 400,000 in fiscal year 2020, with 38 percent of them being over nine months old.
  https://www.ssa.gov/appeals/charts/Age_Distribution_Pending_Hearings_FY2020_4th_Qtr.pdf
• The average SSDI benefit for a disabled worker as of February 2021 was $1,279 a month.
  https://www.ssa.gov/policy/docs/quickfacts/stat_snapshot/

Most American Workers Are Not Covered by Disability Insurance:

• 51 million working adults in the U.S. are without disability insurance.
  Disability Statistics; Chance of Becoming Disabled – DisabilityCanHappen.org
• 70% of the private sector workforce has no long-term disability insurance.
  Social Security Administration, Fact Sheet January 31, 2007