Ohio’s pool of disabled workers has grown faster since the economic downturn began, and applications for Social Security disability benefits remain significantly higher than pre-recession levels, according to a Dayton Daily News analysis.

Some workers who were just barely able to work no longer have the option, and job opportunities for people with health problems and work limitations have shriveled, some industry experts said.

But the increase in applications may be partly attributable to jobless workers exhausting their unemployment benefits. Some research suggests applications for benefits increase when unemployment rises.

Industry experts said disability insurance can be a last resort when the job market remains sluggish. Disability benefits are often the only alternative for unemployed workers with chronic medical problems.

“Most people would rather work because they get paid more than they do on disability,” said Carla Lauer, an attorney and partner with Hochman & Plunkett in Dayton.

In fiscal year 2012, about 131,447 Ohioans applied for benefits from the Social Security Disability Insurance Program, Social Security Administration data show. The program essentially serves as an early retirement plan for workers who are unable to work because of medical problems.

Applications were down 3 percent from 2011, but up 1.5 percent from 2010. Fiscal year 2011 was a record year for applications, which were up over 18 percent from 2006, the last year before the downturn.

As the volume of applications grew, so did the number of residents receiving disability benefits.

In December 2011, about 332,135 disabled workers in Ohio received disability benefits, up 6 percent from the same month of the previous year, and up 32 percent from December 2006, the most recent data show.

In December 2011, 43,315 disabled workers in Butler, Champaign, Clark, Greene, Miami, Montgomery, Preble and Warren counties received benefits. In the region, the number of disabled workers grew by more than 24 percent between 2006 and 2011.

The number of benefit recipients has been rising for years. The growth stems from the aging of the population, more generous benefits, rising rates of obesity and other health troubles and increased recognition of mental health issues, said Matthew Rutledge, research economist with the Center for Retirement Research at Boston College.

But the pace of growth accelerated after the economy soured and high unemployment and job insecurity became widespread.

“There was a big application increase when the Great Recession started, and I think a lot of that is desperation,” Rutledge said. “There is a longstanding finding that when the unemployment rate goes up, the disability application rate goes up.”

Some people who apply for disability benefits are “borderline,” meaning they could possibly work if given the opportunity, but the weak labor market makes it difficult for them to find a job that will accommodate their disabilities, Rutledge said.

Research has shown that unemployed workers who receive jobless benefits are more likely to apply for disability benefits when they are on the verge of losing their unemployment compensation, he said.

One concern is that some people who could possibly work in the future when the economy improves may be seeking disability, which if obtained usually means they are permanently gone from the workforce, Rutledge said. Very few people who receive disability benefits ever exit the program.

Of course, many applications for benefits are denied, and the approval process is rigorous. Last year, only about 31 percent of initial applicants were successful in Ohio. The acceptance rate, however, is slightly higher than it was in the years leading up to the recession.

Rutledge said many people who were denied benefits become much more disabled and impoverished as they appeal the denials. Rutledge said the process is not perfect, but it is important that people who are incapable of working are not forced into it because they cannot obtain disability.

“We don’t want to make the error of forcing a lot of people who can’t work or who can barely work with a lot of accommodations to have to keep working or looking for a job,” Rutledge said.

Most people would rather work than be on disability, especially because the program only pays a fraction of what workers earn on the job, said Lauer, the local attorney.

Some workers with very serious medical problems continue to work because they cannot afford to rely only on disability income, she said.

“I had a client call me yesterday who is working full-time at a factory — and he probably shouldn’t be because his doctors told him not to because he has a very serious leg injury — and yet he is working and is trying to put up with for as long as he possibly can,” she said.

Lauer said the aging workforce is one of the primary drivers of the increase in applications for benefits, because more workers are reaching their disability-prone years. But she said the job market is extremely tough for workers with serious medical problems.

There are few safety-net programs aside from Social Security disability insurance that can help workers with chronic medical issues, said Stanley Hirtle, an attorney with Advocates for Basic Legal Equality in Dayton.

“I think there are real problems employing these people, especially older people,” he said.

He said people become unemployable because of their health even before they become completely disabled. But without a job and source of income, their health deteriorates and they desperately need disability benefits

Elisabeth Dyer, 58, of Harrison Twp., said she worked as a goldsmith for about 30 years, but she was forced to stop working and go on disability after battling cancer multiple times. She said she developed lymphoma in her mouth, jaw, eyes and brain.

After receiving treatment, Dyer said she believes the cancer is gone, but she still has problems walking and she suffers from dizzy spells.

“I still have vertigo, I still can’t walk well and I still get so tired,” she said. “But I’m still here.”

Dyer said she would work if she could, and she would bring in twice the income if she did. But she Social Security disability insurance exists to help people like her, who are not capable of working.

“Social Security disability really, really helped me,” she said. “Without it? I would have been in serious trouble… It saved me.”