Opinion

Optimistic Jobs Numbers Obscure Swelling Social Security Disability Insurance Rolls

Joanne Butler Contributor
Font Size:

Lost in the cheering over from President Obama’s hype section over last Friday’s jobs report was a major factor:  the millions of unemployed on the federal disability rolls. If we added them, plus those who have given up looking for work, then April’s unemployment numbers don’t look so bright – a shameful prognosis in the sixth year of the Obama administration.

First, let’s look at how many people who’ve given up looking for work. The Department of Labor’s Bureau of Labor Statistics has a nice euphemism for them; they’re called “discouraged workers.” In Friday’s BLS monthly report for April 2014, the agency estimated the number of discouraged workers at 783,000, and stated this figure was unchanged from a year ago. BLS defines a discouraged person as wanting and ready for work, but has given up searching for a job because they believe no jobs are available.

Social Security’s statistics add another piece to the unemployed population puzzle.

First, from 2009 through 2013, 11.2 million people have applied for Social Security Disability Insurance (SSDI) benefits (available to people with sufficient work history and their families). Some of these applications involve spouses and disabled children, but most involve workers.

According to the Social Security Administration (SSA), as of March 2014, about nine million workers were receiving SSDI benefits. The basic factor in disability benefits decisions is whether or not the worker has a disabling condition which prevents the person from working. However, other significant factors are involved.

Many workers applying for SSDI are age 50 or over, as the agency’s regulations state that workers below age 50 are more likely to return to work, while the over-50s are less likely. Further, if the worker is 55 or older, the agency’s rules indicate he/she is of “advanced age” and even less likely to return to work. The same rules increase the odds of not returning to work if the applicant is age 60 or older (as age 62 is the first year a worker can apply for early Social Security retirement benefits). Bottom line: if you’re age 50 or older, your chances of being approved for benefits is higher and will increase.

The other determining factor involves education and skill level.

Let’s say Marty dropped out of high school in 11th grade, and immediately went to work in a local furniture factory. Marty is 52 years old and has spent over 30 years making furniture. Decades of bending, stooping, plus pressure on his joints from using high-powered stapling guns have given him arthritis in his legs and arms. He’s developed back problems that make it difficult for him to stand or sit for long periods.

Marty’s work has been physical, not analytical. The idea that Marty could become a computer programmer or take a less-skilled job that involved computers would be stretch (besides, he’s got arthritis in his elbows). Maybe, just maybe, his former employer could have found less-demanding work for Marty to do, but the plant is locked and shuttered. The few remaining plants in his region aren’t hiring.

Marty needs an income and medical benefits, so he applies for SSDI. While he’s waiting for his application to be processed, he learns that’s he eligible for a low-income subsidy for Obamacare and he applies and receives that too.

The number of SSDI applicants is worth noting, as it consists of another segment of the population that’s unemployed. During the month of December 2013 (most recent data available), over 168,000 workers applied for SSDI benefits. While this was the lowest month for SSDI worker applications in 2013, the total number of applications for that year was 2.6 million. That’s 2.6 million workers who aren’t working and haven’t worked for some time.

Looking ahead, after doing a bit of extrapolation (say 160,000 applications per month) I reckoned the first four months of 2014 would yield 640,000 SSDI applications. That adds over a half-million workers who also have been unemployed for awhile.

SSA also administers a second disability program: Supplemental Security Income (SSI). Its population includes disabled non-working adults without enough work history to qualify for SSDI, who also have very low incomes. According to the Social Security Administration, as of March 2014, about five million people of working age (18-64) were receiving SSI benefits.

A final note: once Marty and his counterparts go on SSDI or SSI, the chances of their returning to the workforce are remote, as the risks outweigh the benefits.

SSDI beneficiaries eventually receive Medicare in addition to their cash payments. If Marty’s cash payments are low enough, he may be eligible for food stamps and a housing subsidy.

Meanwhile, SSI recipients receive Medicaid plus a cash payment (plus food stamps, housing subsidies, etc.).

My message for Obama’s cheerleaders: you can put away your pom-poms. The current unemployment rate is, in fact, nothing to brag about. Millions of Americans, many over 50, have given up looking for work, and vanished from the labor market like ghosts. This is a shameful fact in the sixth year of the Obama administration, and American families (who pay no attention to esoteric BLS statistical reports) know it.

PREMIUM ARTICLE: Subscribe To Keep Reading

Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign Up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
BENEFITS READERS PASS PATRIOTS FOUNDERS
Daily and Breaking Newsletters
Daily Caller Shows
Ad Free Experience
Exclusive Articles
Custom Newsletters
Editor Daily Rundown
Behind The Scenes Coverage
Award Winning Documentaries
Patriot War Room
Patriot Live Chat
Exclusive Events
Gold Membership Card
Tucker Mug

What does Founders Club include?

Tucker Mug and Membership Card
Founders

Readers,

Instead of sucking up to the political and corporate powers that dominate America, The Daily Caller is fighting for you — our readers. We humbly ask you to consider joining us in this fight.

Now that millions of readers are rejecting the increasingly biased and even corrupt corporate media and joining us daily, there are powerful forces lined up to stop us: the old guard of the news media hopes to marginalize us; the big corporate ad agencies want to deprive us of revenue and put us out of business; senators threaten to have our reporters arrested for asking simple questions; the big tech platforms want to limit our ability to communicate with you; and the political party establishments feel threatened by our independence.

We don't complain -- we can't stand complainers -- but we do call it how we see it. We have a fight on our hands, and it's intense. We need your help to smash through the big tech, big media and big government blockade.

We're the insurgent outsiders for a reason: our deep-dive investigations hold the powerful to account. Our original videos undermine their narratives on a daily basis. Even our insistence on having fun infuriates them -- because we won’t bend the knee to political correctness.

One reason we stand apart is because we are not afraid to say we love America. We love her with every fiber of our being, and we think she's worth saving from today’s craziness.

Help us save her.

A second reason we stand out is the sheer number of honest responsible reporters we have helped train. We have trained so many solid reporters that they now hold prominent positions at publications across the political spectrum. Hear a rare reasonable voice at a place like CNN? There’s a good chance they were trained at Daily Caller. Same goes for the numerous Daily Caller alumni dominating the news coverage at outlets such as Fox News, Newsmax, Daily Wire and many others.

Simply put, America needs solid reporters fighting to tell the truth or we will never have honest elections or a fair system. We are working tirelessly to make that happen and we are making a difference.

Since 2010, The Daily Caller has grown immensely. We're in the halls of Congress. We're in the Oval Office. And we're in up to 20 million homes every single month. That's 20 million Americans like you who are impossible to ignore.

We can overcome the forces lined up against all of us. This is an important mission but we can’t do it unless you — the everyday Americans forgotten by the establishment — have our back.

Please consider becoming a Daily Caller Patriot today, and help us keep doing work that holds politicians, corporations and other leaders accountable. Help us thumb our noses at political correctness. Help us train a new generation of news reporters who will actually tell the truth. And help us remind Americans everywhere that there are millions of us who remain clear-eyed about our country's greatness.

In return for membership, Daily Caller Patriots will be able to read The Daily Caller without any of the ads that we have long used to support our mission. We know the ads drive you crazy. They drive us crazy too. But we need revenue to keep the fight going. If you join us, we will cut out the ads for you and put every Lincoln-headed cent we earn into amplifying our voice, training even more solid reporters, and giving you the ad-free experience and lightning fast website you deserve.

Patriots will also be eligible for Patriots Only content, newsletters, chats and live events with our reporters and editors. It's simple: welcome us into your lives, and we'll welcome you into ours.

We can save America together.

Become a Daily Caller Patriot today.

Signature

Neil Patel