Thursday, April 4, 2013

FEATURE-Job disability a headache for U.S. recovery






* U.S. disability rolls at record high during recession-SSA


* Weakens U.S. growth prospects, raises deficit

* Only 3 pct of disabled insured workers go back to work

* Share of working-age people on disability rising

* At current pace, program to be insolvent by 2016

By Antonella Ciancio

WASHINGTON, May 6 (Reuters) – Monica Soltes was excited 10 years ago to leave Merrill Lynch and start her own business as an independent financial planner in San Diego. After she fell off a porch at her cousin’s cottage and broke her elbow, her dreams unraveled.

Following multiple surgeries that confined her to bed, Soltes was diagnosed with a hormonal disease that is weakening her bones. She also ran out of money, signed up for disability benefits and has been unable to work again.

The 47-year-old from Michigan is among the 8.7 million American workers on the U.S. disability rolls, an important part of the social safety net. Since the recession began in 2007, she has been joined by a record number of people seeking disability benefits, raising questions about the program’s solvency and casting a pall over future prospects for U.S. economic growth.

Applicants soared to a record high of 2.94 million in 2010, and have held above 18 per 1,000 workers in the past three years – a far higher rate than in previous recessions.

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