The NY Post found some of the 1.2 million who disappeared from the work force in January. Long term unemployed who cannot find work have increased by 18% with 43% of them declaring mental illness as the reason for requesting social security disability.
Long term unemployment apparently causes insanity. Interestingly, social security disability was one of the entitlement funds that was expected to run out of funds by 2018. The timeline for that will undoubtedly be stepped up with this development.
…As of January, the federal government was mailing out disability checks to more than 10.5 million individuals, including 2 million to spouses and children of disabled workers, at a cost of record $200 billion a year, recent research from JPMorgan Chase shows.
The sputtering economy has fueled those ranks. Around 5.3 percent of the population between the ages of 25 and 64 is currently collecting federal disability payments, a jump from 4.5 percent since the economy slid into a recession.
Mental-illness claims, in particular, are surging.
During the recent economic boom, only 33 percent of applicants were claiming mental illness, but that figure has jumped to 43 percent, says Rutledge, citing preliminary results from his latest research.
His research also shows a growing number of men, particularly older, former white-collar workers, instead of the typical blue-collar ones, are applying.
The big concern about the swelling ranks is that once people get on disability, they’re unlikely to give it up and go back to work.
“It’s not like other support programs, such as unemployment insurance, which you lose after a year or two,” says Michael Feroli, chief US economist with JPMorgan…Read more: NY Post