NCCI released its updated Quarterly Economics Briefing, which reviews the current state of the economy in terms of its effect on the workers’ compensation market. Highlights include continuing employment growth and modest wage growth, however, profits are constricted by the low interest rate environment and medical inflation. A separate report on Brexit will follow this one, as it was compiled before the U.K. voted to leave the European Union. Key takeaways:
- Payroll growth has been driven by increases in both employment and average weekly wages.
- For the private sector, wage growth has slowed in the more recent years while employment growth has remained fairly steady throughout the recovery.
- In 2015, employment growth is the dominant driver of the change in payroll for Contracting while average wage growth is the primary driver for the private sector and the four other industry groups (Manufacturing, Office and Clerical, Goods and Services, and Miscellaneous).
- Payroll increased marginally for the total private sector in Louisiana at a 1.7 percent annual change for the whole of 2015
Download the briefing, including more state stats, in full: NCCI Quarterly Economics Briefing Q2 2016