In claims management conversations -- from the water cooler to the executive suite -- one questions comes up again and again: "How will the recession affect workers' compensation claims?" With so many employers struggling to keep their companies afloat, this critical issue must be scrutinized from every possible angle.

The jury is still out on whether the recession, and accompanying workforce layoffs in particular, will result in an increase in workers' compensation claims. Historically, the numbers and cost have spiked during economic downturns. But as the American workforce has shifted from blue- to white-collar jobs with less exposure to physical trauma, an increase in layoffs may not signal an increase in claims. On the other hand, the current recession is the longest in almost two decades, and unemployment reached a 25-year high in March 2009, so the full impact remains to be seen.

Regardless of whether workers' compensation claims numbers go up or not, cost-cutting measures are the order of the day in all areas of operation. Claims management is no exception, and in fact, in tough times, the challenges become even greater. Why? Controlling cost has always been at the very top of the claims management "must-do" list. Many would go so far as to say that wringing any more cost savings out of claims management is like squeezing blood from the proverbial turnip. There's nothing there to squeeze.