Layoff's Due to High Workers' Comp Costs

"A Milwaukee-based temporary staffing company has laid off nearly 500 employees in Illinois, blaming the high cost of the state's workers' compensation system."

In a down-turned economy companies are continually looking for ways to lower their costs. I have heard of closing locations due to the cost of overhead, cutting back on travel, and even what I think is the most ridiculous, cutting advertising, but I have never heard of this one; laying off employees specifically because of the high cost of Workers' Compensation.

Here is an interesting article by Ameet Sachdev, a Chicago Tribune reporter Staffing firm laying off nearly 500 in Illinois - Parallel Employment Group cites state's high cost of workers' compensation.

What will the impact of higher Workers' Comp costs? In this case higher Unemployment. Trading one cost to add to another is not a solution to a long term problem.