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Conresioa ReerhIevc


December  10, 2018


The Opioid Epidemic and the U.S. Labor Market


Some  Members  of Congress have expressed strong
concerns about the societal costs of the opioid epidemic,
including its potential to adversely affect the U.S. economy.
Efforts to quantify the annual economic costs of opioid
abuse and dependence produce estimates in the tens of
billions of dollars, of which workforce losses-decreased
productivity, missed days of work, and premature death-
account for a substantial share. Opioid abuse could further
generate labor force costs-directly or indirectly-if it
affects labor force participation decisions and
unemployment.  A small body of research has explored
correlations between opioid abuse and these indicators, but
it remains unclear whether the opioid epidemic is a driver
or an outcome of recent workforce trends or an indicator of
other underlying factors.

The discussion that follows looks at studies that have
examined  the relationship between recent labor market
patterns and opioid misuse (i.e., illicit opioid use and
misuse of prescription drugs, meaning use in any way other
than as prescribed). It is important to bear in mind,
however, that some opioids have a legitimate medical use
and may improve  both labor market participation and
worker productivity. For example, findings from a recent
study of county-level opioid prescribing rates and
employment  suggest that prescription opioids allowed some
women  to work who  otherwise would not. In addition,
some research suggests that untreated pain is associated
with lower worker productivity. An overview of the recent
opioid epidemic is provided first and followed by a
discussion of how it may have interacted with the labor
market.

The   Recent Opioid Epidemic
Opioids-drugs  derived from the opium poppy or those
emulating the effects of opium-derived drugs-bind to
opioid receptors in the body that are essential in the
regulation of pain and emotions. Opioids have been used by
the medical community to treat pain for centuries, but they
also have tremendous potential for abuse and addiction. For
this reason, stakeholders in the United States, such as the
federal government and the medical community, generally
sought to minimize the use of opioids outside of palliative
care for much of the 20th century.

Beginning in the 1970s and 1980s, advocacy groups,
believing that pain was being undertreated, sought to
increase the use of opioids for pain management. By the
1990s, advocacy efforts-including the pain as the fifth
vital sign campaign-successfully shifted the treatment
approach to chronic pain (particularly non-cancer pain) to
include more opioids This movement was bolstered by the
2001 introduction of new pain management standards by
the Joint Commission-an  independent, non-profit


accreditation body for health care organizations. Included in
these standards were PE1.4: pain is assessed in all patients
and RI.1.2.8: patients have a right to appropriate
assessment and management  of pain.

Occurring alongside this shift in pain treatment philosophy
was the 1996 release and aggressive marketing of
OxyContin, a high-dosage formulation of the opioid
oxycodone. The drug was pitched as an effective but non-
addictive pain reliever based on its slow-release formula,
despite early reports that it was just as addictive as other
opioids and easily diverted from intended use. Between
1991 and 2011, opioid prescriptions tripled. As
prescriptions increased, so did diversion. A study by the
National Institutes of Health found that the rates of
nonmedical use of prescription opioids increased from 1.8%
to 4.1% of the adult population between 2001-2002 and
2012-2013. In 2002, roughly 1.5 million people reported
pain reliever abuse or dependence in the previous year. In
2012, that number was over 2 million. Over that same time,
the number of people abusing heroin doubled-from
240,000 in 2002 to over 480,000 in 2012. In 2016, over 2
million Americans qualified for an opioid use disorder
diagnosis.

Figure  I. Opioid-Related Deaths, 1999-201 7


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Source: Centers for Disease Control and Prevention (CDC).
Notes: All opioids includes deaths that include at least one of the
following International Classification of Diseases (ICD- 10) codes:
T40.0-T40.4, or T40.6. ICD- 10 codes for the individual opioid lines
are heroin (T40.1), natural and semi-synthetic opioids (T40.2), and
synthetic opioids (T40.4). Estimates are age-adjusted.

Since the onset of the epidemic in the late 1990s, rates of
opioid overdose deaths have also increased significantly.
Driven largely by prescription opioid pain relievers, opioid
overdose deaths tripled from 1999 to 2014. In 2017, the
age-adjusted rate of opioid overdose deaths in the United
States was nearly 15 per 100,000 people-up from 2.9 per
100,000 in 1999.


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