NIOSH Fatal Occupational Injury Cost Fact Sheet: Manufacturing

Number, rate, and costs of fatal occupational injuries in the U.S. manufacturing industry by selected characteristics, 1992–2002

			Costs (2003 dollars)
Characteristic	Number of fatalities	Fatality rate(per 100,000 workers)	Total (millions)	Mean(thousands)	Median(thousands)
All incidents	7705	3.5	$6361	$829	$825
Sex:
Male	7269	4.9	6000	829	822
Female	436	0.6	361	830	850
Race of decedent:
White	6384	3.4	5347	841	834
Black	946	4.2	707	751	785
Other*	375	3.5	307	819	780
Age of decedent:
16–19	168	3.8	118	701	674
20–24	547	3.1	458	838	807
25–34	1606	2.8	1603	1000	939
35–44	2087	3.1	2161	1038	975
45–54	1738	3.7	1456	839	790
55–64	1173	5.3	536	459	433
65+	386	10.9	30	81	64
Occupation group:†
Managerial and professional specialty	729	1.4	893	1233	1375
Technical, sales, and administrative support	540	1.5	516	963	962
Service	132	4.3	74	571	660
Farming, forestry, and fishing	1175	122.4	706	602	677
Precision production, craft, and repair	1493	3.6	1393	939	1016
Operators, fabricators, and laborers	3599	4.2	2755	767	812
Event or exposure:†
Contact with objects and equipment	2879	1.3	2152	750	775
Falls	658	0.3	492	752	774
Bodily reaction and exertion	41	0.0	34	830	860
Exposure to harmful substances or environments	725	0.3	646	896	907
Transportation accidents	2274	1.0	1982	875	860
Fires and explosions	489	0.2	440	900	891
Assaults and violent acts	622	0.3	605	977	936

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*This category includes all other races, such as American Indian and Asian, as well as unknown or missing races.

^†Numbers are not reported for “unknown” or “not classified” categories.

Fatal Occupational Injury Cost Model

Theoretical Basis of Cost Estimation

The cost to society of a workplace fatality was estimated using the cost-of-illness approach, which combines direct and indirect costs to yield an overall cost of an occupational fatal injury. For these calculations, only medical expenses were used to estimate the direct cost associated with the fatality. The indirect cost was derived by calculating the present value of future earnings summed from the year of death until the decedent would have reached age 67, accounting for the probability of survival were it not for the premature death. (For more information, see Biddle, E [2004]. Economic Cost of Fatal Occupational Injuries in the United States, 1980–1997. Contemporary Economic Policy 22(3):370–381.)

Mathematical Representation of Indirect Costs

PVF = ΣPy,s (y+1)[Ys, j(n) + Yhs(n)] (1+g)n–y/(1+r)n–y
where:

PVF	= present discounted value of loss due to occupational fatal injury per person
Py,s (y+1)	= probability that a person of race r, sex s, and age y will survive to age y+1
y	= age of the person at death
s	= sex of the person
n	= age if the person had survived
Ys,j(n)	= median annual earnings of an employed person of sex s, occupation j, and age n (includes benefits and life-cycle wage growth adjustment)
Yhs(n)	= mean annual imputed value of home production of a person of sex s and age n
g	= wage growth rate attributable to overall productivity
r	= real discount rate (3%)

Data Sources

Fatality data: Bureau of Labor Statistics (BLS) Census of Fatal Occupational Injuries (CFOI). These data exclude military personnel, decedents with unknown age or sex, fatalities occurring in New York City, and fatalities from the September 11, 2001, terrorist attacks.

Probability of survival: National Center for Health Statistics, Division of Vital Statistics.

Median annual earnings: BLS Current Population Survey. Wage data are based on the occupation of the decedent and the year of death adjusted by Gross Domestic Product (GDP) Deflator to base year of dollar. Life-cycle wage growth was calculated based on the rate of change in wages between age groups.

Benefits: U.S. Chamber of Commerce. Benefits data are based on the industry where the decedent was employed and the year of death adjusted by the GDP Deflator.

Mean annual home production: Expectancy Data that were derived by a time diary study sponsored by the U.S. Environmental Protection Agency and conducted by the University of Maryland.

Wage growth rate: Based on BLS Employment Cost Index (ECI)

Medical costs: National Council on Compensation Insurance. Costs are a 3-year average cost.

Employment estimates for rate calculations: BLS Current Population Survey.

Fatality Rate Calculations

Fatality rates were calculated by NIOSH and may differ from previously published BLS CFOI rates. Fatality rates were calculated as deaths per 100,000 workers. Fatality rates for sex, race, age group, and occupation were calculated using employment estimates by the individual characteristic within the specific industry sector. Employment estimates for the specific industry sector were used to generate rates for event.

Classification Systems

Industry:	1987 Standard Industrial Classification System (SIC)
Occupation:	1990 Bureau of Census Occupational Classification System (BOC)
Event:	1992 BLS Occupational Injury and Illness Classification System (OIICS)

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