In claim management conversations from the water cooler to theexecutive suite, one question arises again and again: "How will therecession affect workers' compensation claims?" With so manyemployers struggling to keep their companies afloat, this criticalissue must be scrutinized from every possible angle.

The jury is still out on whether the recession -- andaccompanying workforce layoffs, in particular -- will result in anincrease in workers' compensation claims. Historically, the numbersand costs have spiked during economic downturns. But as theAmerican workforce has shifted from blue- to white-collar jobs withless exposure to physical trauma, an increase in layoffs may notsignal an increase in claims. On the other hand, the currentrecession is the longest in almost two decades, and unemploymentreached a 25-year high in March 2009, so the full impact remains tobe seen.

Regardless of whether or not workers' comp claim numbers go up,cost-cutting measures are the order of the day in all areas ofoperation. Claim management is no exception, and in tough times,the challenges become even greater. Why? Controlling costs hasalways been at the very top of claim management's "must-do" list.Many would go so far as to say that wringing any more cost savingsout of claim management is like squeezing blood from the proverbialturnip. There's nothing left to squeeze out.