Income at Risk: Unemployment Rate for People With Disabilities Back on the Rise, Allsup FindsAPR 16, 2012 - 10:00 ET
Unemployment Rate for People With Disabilities Spikes in First Quarter; Social Security Disability Applications Up Slightly From Same Time 2011
BELLEVILLE, IL--(Marketwire - April 16, 2012) - The unemployment rate for people with disabilities climbed back above 14 percent during the first quarter of 2012 after dropping significantly at the end of 2011, according to a study by Allsup, a nationwide provider of Social Security disability representation and Medicare plan selection services.
The Allsup Disability Study: Income at Risk shows that people with disabilities experienced an unemployment rate nearly 74 percent higher than the rate for people with no disabilities for the first quarter of 2012. Allsup has been conducting this quarterly study since the first quarter of 2009. The full study is available at http://www.allsup.com/Portals/4/allsup-study-income-at-risk-q1-12.pdf.
The unemployment rate averaged 14.6 percent for people with disabilities and 8.4 percent for people with no disabilities during the first quarter of 2012. This compares to 13.2 percent for people with disabilities and 8.1 percent for people with no disabilities during the fourth quarter of 2011. These figures are based on non-seasonally adjusted data from the U.S. Bureau of Labor Statistics. The BLS also reported that 42.5 percent of individuals unemployed in March 2012 had been jobless for 27 weeks or more. This compares to 45.5 percent during March 2011.
"People with disabilities often face a much greater challenge in securing employment," said Paul Gada, personal financial planning director for the Allsup Disability Life Planning Center. "Their health condition may make it difficult to continue to work for extended periods, or it worsens so they are forced out of the labor market entirely."
The Allsup Disability Study: Income at Risk shows that 724,746 people with disabilities applied for Social Security Disability Insurance (SSDI) during the first quarter of 2012. This is up significantly from the 660,712 people who applied in the previous quarter, but just slightly above 720,119 applicants in the first quarter of 2011.
Overall, in 2011, nearly 2.9 million individuals were unable to continue to work because of a disability and applied for SSDI. Nearly 1.8 million SSDI claims are pending with an average cumulative wait time of more than 800 days, according to Allsup's analysis of the Social Security disability backlog.
Many individuals fall below the national poverty line and face significant financial hardships while awaiting their SSDI benefits. According to findings from an Allsup Disability Finance poll released earlier this month, people most commonly rely on friends and family to help them through, but nearly two-thirds of respondents report having sold personal belongings and many use various other means to try to make ends meet.
"Bankruptcies, foreclosures and other devastating financial hazards are too common among people with disabilities," Gada said. "To help minimize these hardships, it's important to apply for SSDI benefits as soon as possible and to seek representation to help navigate the SSDI process from the outset."
Five Reasons to Seek Early SSDI Representation
There are several advantages to having a Social Security disability representative, especially at the initial application stage. These include:
Anyone with questions about eligibility for Social Security benefits can contact the Allsup Disability Evaluation Center at (800) 678-3276 for a free disability evaluation.
Allsup also provides free financial planning tools to help people better manage their finances while awaiting SSDI benefits at http://www.allsup.com/personal-finance.
Allsup is a nationwide provider of Social Security disability, Medicare and Medicare Secondary Payer compliance services for individuals, employers and insurance carriers. Founded in 1984, Allsup employs more than 800 professionals who deliver specialized services supporting people with disabilities and seniors so they may lead lives that are as financially secure and as healthy as possible. The company is based in Belleville, Ill., near St. Louis. For more information, visit www.Allsup.com.
The information provided is not intended as a substitute for legal or other professional services. Legal or other expert assistance should be sought before making any decision that may affect your situation.