Older workers are reshaping the U.S. workforce and workers' compensation landscape, even as overall injury frequency declines, according to new data and industry analysis.
Workplace injury frequency fell to historic lows in recent years, but one segment is moving in the opposite direction: Employees age 60 and older. "The one group that increased in claim volume as a percentage was that 60-plus age category," Sedgwick Chief Claims Officer Max Koonce said in a recent interview with PropertyCasualty360.com. He added that older workers have posted the largest growth in workers' compensation claims for five consecutive years.
That shift reflects broader workforce trends. Older employees are staying on the job longer for an array of reasons including financial pressure, longevity and the desire to continue to be more socially and intellectually engaged. While they bring experience and stability to jobsites, their workers' comp claims tend to be more complex.
"There's no doubt that injury severity is greater" compared to younger workers, Koonce said. As a result, employers must adapt communication styles, safety strategies and claims management approaches.
At the same time, overall claim trends present a mixed picture. According to Sedgwick's 2025 State of the Line Workers' Compensation Report, frequency declines in 2025 were driven largely by the reduction of lower-cost, medical-only claims. That shift has skewed perceptions of severity. As Koonce explained, removing less expensive claims from the pool "makes it look like severity may have gone up," even if underlying claim complexity has not significantly changed.
Costs, however, are rising. The report shows increases tied to inflation, with disability benefits rising about 6% and medical costs roughly 3% year over year — meaning total claim costs can increase even without changes in injury patterns.
Against this backdrop, best practices for workers' compensation programs remain consistent, but execution is more critical than ever. Early injury reporting is foundational.
"You encourage the reporting of injuries so that people feel very comfortable coming in…and you get them into the process very quickly," Koonce said. Prompt access to appropriate medical care is equally important, along with strong return-to-work programs, which research shows are essential to recovery and cost control.
Maintaining employee connection throughout the claims process is another differentiator. Employers that stay engaged — rather than outsourcing the experience entirely — support better outcomes and faster reintegration. "They're still maintaining that relationship," Koonce said, emphasizing the role of work in social and mental well-being.
Finally, advanced data and analytics are transforming claims management. Tools such as predictive modeling and targeted interventions allow employers to tailor care to individual claims, particularly for higher-risk populations like older workers.
The bottom line: While safer workplaces are reducing overall injuries, an aging workforce and rising costs are complicating the claims landscape — making proactive, data-driven program management more important than ever.
Nominations are due May 15, 2026 for PropertyCasualty360's Workers' Comp Risk Management Award for Excellence. The award honors employers that are committed to prevention, collaboration and improved outcomes for injured workers. Submit your nomination today!
(Featured image credit: Yuliia/Adobe Stock)
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