In that environment, said Victor, who holds a doctorate degree in economics, successful businesses will do more with less and successful workers' comp systems will eliminate unnecessary costs--money paid by employers that does not improve the outcome of efforts to return employees to work.

There are, he said, opportunities to eliminate costs that have both short- and long-term effects. WCRI has been examining ways to eliminate "unnecessary" prescriptions and litigation. Preliminary study information was offered to conference participants that WCRI said could not be made public at this time because the early research is subject to change.

Victor said for workers' comp agencies the shrunken economy will mean performing the same mission with less revenue.

In the "new normal" economy that emerges post recession, in addition to smaller payrolls there will be higher unemployment, Victor said.

"This is not a typical downturn. Many observers believe we will not return where we were," he warned, counting himself as one who sees a different U.S. economy ahead.

"We are headed to a new equilibrium sized to the true level of demand," he said, noting this will be brought on by a fall in prices, the closing of factories and malls, and reduction in government services.

Because of retiring baby boomers, Mr. Victor said, the United States will go back to a lower level of employees even when there is recovery.

But in the shrunken economy, he added, many will be returning to less productive jobs at lower wages.