P/C Insurance Industry’s Low Unemployment Rate Likely to Go Lower

September 1, 2015

The insurance sector has been hiring all year and appears on track to continue to add personnel.

The Bureau of Labor Statistics reported that the unemployment rate for the finance and insurance industry was at 2.1 percent in July, down from 2.4 percent in June.

Employment in financial activities rose by 17,000 in July and has risen by 156,000 over the past 12 months. Insurance carriers accounted for more than half of the gain in July (+10,000) and over the year (+85,000), according to BLS.

The insurance sector unemployment rate compares with a rate of 5.3 percent for all non-farm sectors.

Also, according to a survey by The Jacobson Group and Ward Group, 65 percent of property/casualty insurance companies polled have plans to continue adding personnel, even while expecting a slowdown in business.

If the industry follows through on its plans, there will be a 1.98 percent increase in industry employment within the next year, according to the Semi-Annual U.S. Insurance Labor Outlook Study.

“The survey results show revenue growth predictions dropping to their lowest rate in three years,” says Gregory P. Jacobson, co-chief executive officer of Jacobson, the insurance recruiting firm. “Despite this drop, staffing predictions are at their second highest rate since the economic downturn. The industry is clearly focused on filling positions and growing staff.”

Technology, claims and underwriting positions continue to be the most in demand industry positions, according to the study.

The Jacobson-Ward study found that while growth predictions are down, nearly 79 percent of organizations still expect an increase in revenue throughout the upcoming year.

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