US Disability Claims Surge 35% Since 2020, Straining Workforce

Disability claims in the US have surged 35% since 2020, driven by Long COVID, cognitive impairments, aging, and chronic conditions. This strains Social Security and the workforce, with employment among disabled growing but overall numbers rising. Policymakers must enhance healthcare access and reforms to avert a labor crisis.
US Disability Claims Surge 35% Since 2020, Straining Workforce
Written by Andrew Cain

Rising Disability Claims Amid Economic Shifts

In recent years, the number of Americans claiming disabilities has surged, prompting questions about underlying causes and implications for the workforce. Data from the U.S. Bureau of Labor Statistics reveals a staggering increase, with disability rates climbing nearly 35% since 2020. This trend, highlighted in reports from the Bureau of Labor Statistics, shows that employment among disabled individuals has grown faster than in the general population post-COVID-19, yet the overall count of those identifying as disabled continues to rise sharply.

Experts point to a confluence of factors driving this uptick. Long COVID, a lingering aftermath of the pandemic, emerges as a primary culprit. Posts on X, formerly Twitter, frequently cite personal stories and aggregate data suggesting that persistent symptoms like fatigue and cognitive impairment are pushing millions out of the workforce. According to insights from the World Health Organization, unmet health needs and barriers to care exacerbate these issues, leaving many unable to maintain employment.

The Role of Long COVID and Chronic Conditions

Delving deeper, the composition of disabilities has shifted markedly. A piece from the Federal Reserve Bank of St. Louis notes that cognitive disabilities have spiked by 43% since 2019, often linked to post-viral effects. This aligns with warnings from earlier reports, such as one in 2021 that predicted system strain if COVID disabled even a few million Americans. No additional funding materialized, and now Social Security Disability Insurance claims are overwhelming the system, as detailed in analyses from the Social Security Administration.

Beyond the pandemic, demographic changes play a role. An aging workforce means more individuals encountering age-related disabilities, compounded by worsening chronic conditions like diabetes and heart disease. Recent news from The Global Statistics in July 2025 underscores that functional disabilities affect millions, with rates climbing due to both physical and mental health challenges. Advocates worry about policy impacts, including potential cuts under initiatives like Project 2025, which could strip protections, as critiqued in a report by the Center for American Progress.

Policy Responses and Economic Implications

Government responses have included cost-of-living adjustments, with a 2.5% increase in Social Security benefits for 2025 announced by the Social Security Administration via Nolo. Yet, disability advocates, as reported in Stat News, express concerns over emerging trends like AI in healthcare and potential Medicaid reductions, which could further hinder access to services.

Economically, this rise strains federal budgets. An NPR investigation from Planet Money traced a decades-long increase in disability rolls, now accelerated to 14 million recipients monthly. Recent X discussions amplify alarms, with users noting a 19.6% jump since 2021, questioning why this isn’t front-page news. For industry insiders, the key lies in addressing root causes—enhancing healthcare access, funding research into Long COVID, and reforming disability insurance to prevent a broader labor crisis.

Looking Ahead: Challenges and Opportunities

As we move into late 2025, veterans’ disability rates also reflect this trend, with a 2.5% pay increase effective from December, per Marca. Eligibility expansions and awareness campaigns may contribute to higher reporting, but underlying health declines remain the core issue.

Ultimately, tackling this requires multifaceted strategies. Insights from The Council for Disability Income Awareness warn of a growing crisis in income protection, urging policymakers to act. Without intervention, the surge in disabilities could reshape America’s labor market, demanding innovative solutions to support affected workers and sustain economic productivity.

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