Allsup Disability Study: Income at Risk

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1 Examining income risk factors for people with disabilities Special Focus on Veterans 2013 Third-Quarter Report October 2013

2 The quarterly unemployment rate for people with disabilities continues to be significantly higher than for those with no disabilities. 2 Quarterly unemployment rates 20% 18% 16% 14% 12% 13.7% 12.4% 13.0% 13.6% 14.0% 8% 7.9% 7.3% 7.9% 7.2% 7.1% 6% 4% 2% 0% Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 People with disabilities People with no disabilities The third-quarter unemployment rate for people with disabilities rose slightly compared to second quarter 2013, reaching its highest level in The rate for those with no disabilities declined to its lowest level in more than a year. For third quarter 2013, people with disabilities experienced an unemployment rate 97 percent higher than people with no disabilities. Source: Allsup analysis based on U.S. Bureau of Labor Statistics data, not seasonally adjusted and includes those 16 and older.

3 The monthly unemployment rate for people with disabilities reached a 2013 high point during the third quarter month unemployment rates 18% 16% 14% 12% 12.9% 15.8% 15.2% 12.5% 12.9% 13.3% 13.6% 13.9% 13.5% 12.9% 12.7% 11.7% 13.7% 12.3% 13.0% 12.9% 13.6% 14.2% 14.7% 14.1% 13.1% 8% 8.7% 8.4% 8.1% 7.6% 7.7% 8.2% 8.4% 8.0% 7.3% 7.3% 7.1% 7.5% 8.3% 7.9% 7.4% 6.9% 7.0% 7.6% 7.4% 7.1% 6.8% 6% 4% 2% Jan.-12 Feb.-12 Mar.-12 Apr.-12 May.-12 Jun.-12 Jul.-12 Aug.-12 Sep.-12 Oct.-12 Nov.-12 Dec.-12 Jan.-13 Feb.-13 Mar.-13 Apr.-13 May.-13 Jun.-13 Jul.-13 Aug.-13 Sep.-13 People with disabilities People with no disabilities The unemployment rate for people with disabilities climbed to a 16-month high in July 2013 at 14.7 percent nearly twice the unemployment rate of people with no disabilities for that month. Source: Allsup analysis based on U.S. Bureau of Labor Statistics data, not seasonally adjusted and includes those 16 and older.

4 Social Security Disability Insurance (SSDI) applications declined in the third quarter of SSDI applications ,182,589 2,046, , ,292 0 First three quarters 2012 First three quarters 2013 Q Q The number of people applying for Social Security Disability Insurance (SSDI) benefits declined by about 2.5 percent from second to third quarter. For the first nine months of 2013, SSDI applications dropped by 6.3 percent compared with the first nine months of Source: Allsup analysis based on Social Security Administration data.

5 Special Focus on Veterans 5 Veteran disability profile 80% 70% 60% 50% 40% 30% 20% 0% 76% Without serviceconnected disabilities 14% With serviceconnected disabilities 30% have VA rating of % 70% have VA rating of 0-50% About 16% receive SSDI benefits* 84% do not receive SSDI benefits Approximately 14 percent of veterans have service-connected disabilities. Three in 10 of these veterans have a disability rating of 60 percent or more, as of Aug. 2012, according to a 2013 U.S. Bureau of Labor Statistics report. Most veterans receiving benefits from the U.S. Department of Veterans Affairs (VA) for service-connected disability did not receive SSDI benefits. Source: Allsup analysis based on U.S. Bureau of Labor Statistics data, not seasonally adjusted and includes those 16 and older; *Veterans Disability Benefits Commission (2007).

6 Special Focus on Veterans 6 Quarterly unemployment rates for U.S. Veterans 20% 18% 16% 14% 12% 8% 6% 4% 2% 0% 8.1% 8.1% 7.2% 7.4% 6.7% 7.5% 6.6% 7.3% 6.4% 6.4% Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Overall Veterans Although the unemployment rate for veterans has been lower than the overall adult labor pool, veterans with high disability ratings reported significantly higher unemployment, as shown on next slide. Source: Allsup analysis based on U.S. Bureau of Labor Statistics data, not seasonally adjusted and includes those 16 and older.

7 Special Focus on Veterans 7 Veteran unemployment rate by disability rating, August % 11.2% % Rating 8% 6.5% 6.6% 6% 4% 2% All Ratings 30-50% Rating 4.9% 0-20% Rating 0% With service-connected disability 60 percent or higher disability rating percent disability rating Less than 30 percent disability rating Of about 3 million veterans reporting a service-connected disability, the unemployment rate was 6.5 percent in Aug. 2012, according to a 2013 U.S. Bureau of Labor Statistics report. However veterans with a VA disability rating of 60 percent or higher had an unemployment rate of 11.2 percent. Source: U.S. Bureau of Labor Statistics data, not seasonally adjusted and includes those 16 and older.

8 8 Background information About Allsup: Allsup is a nationwide provider of Social Security disability, veterans disability appeal, Medicare and Medicare Secondary Payer compliance services for individuals, employers and insurance carriers. Allsup professionals deliver specialized services supporting people with disabilities and seniors so they may lead lives that are as financially secure and as healthy as possible. Founded in 1984, the company is based in Belleville, Ill., near St. Louis. For more information, go to or visit Allsup on Facebook at Allsup Disability Study: Allsup has been conducting the quarterly Allsup Disability Study: Income at Risk since Third quarter 2013 report: Archive: Source materials: U.S. Bureau of Labor Statistics, and Social Security Administration, Allsup contacts: Rebecca Ray, (800) ext , Mary Jung, (773) ,

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