BLS: Insurance Industry Gained 3,300 Jobs in May
June 3, 2016 by Thomas Harman
WASHINGTON – The U.S. insurance industry added 3,300 jobs in May, according to data released June 6 by the Bureau of Labor Statistics.
The seasonally adjusted 0.12% increase for May 2016 over April 2016 shows a continuation in the trend toward industry growth. The May adjusted growth rate is even with the April adjusted growth rate — initially reported to be 0.21%, according to the latest data.
Updated industry data show the insurance industry added 3,300 jobs in April, after initially reporting a 5,500-job increase (Best’s News Service, May 6, 2016).
Overall insurance industry employment in May was 2,594,400, an increase of 62,500 jobs from May 2015, the BLS data said.
Total nonfarm payroll employment nationwide increased by 38,000 in May, while the overall unemployment rate fell to 4.7%, which BLS data show would be the lowest level since November 2008.
Private employment increased by 25,000 jobs in May, meaning that U.S. businesses have added 14.5 million jobs for 75 consecutive months, extending the longest recorded growth streak. The reported increase was well below the pace of many months, the slowdown attributed partially to the impact of a telecommunications industry strike, said Jason Furman, chairman of the White House Council of Economic Advisers.
May job increases were in health care (46,000), and professional and business services (10,000).
The BLS reports insurance industry total payrolls monthly on a seasonally adjusted basis, along with the current month’s non-farm payrolls. Separately, data by insurance industry segments — broken out by various insurance carrier and non-carrier categories — are available only on an unadjusted basis for the prior month.
Four of eight insurance sectors saw growth in April 2016 compared with the month prior. Sectors showing job increases included claims adjusting (up 0.54% to 56,100 jobs); reinsurance carriers (up 0.41% to 24,700 jobs); direct property/casualty insurers (up 0.23% to 519,000 jobs); and third-party administration of insurance funds (up 0.06% to 175,100 jobs). Sectors showing declines were direct title insurance and other direct insurance carriers (down 0.57% to 87,400 jobs); insurance agencies and brokerages (down 0.18% to 772,800 jobs); direct health and medical insurance carriers (down 0.17% to 539,800 jobs); and direct life insurance carriers (down 0.09% to 331,100 jobs).
All eight insurance sectors showed job growth in April 2016 over April 2015, led by direct title insurance and other direct insurance carriers (up 4.17%); direct health and medical insurance carriers (up 3.97%); direct life insurance carriers (up 3.79%); insurance agencies and brokerages (up 2.18%); third-party administration of insurance funds (up 0.75%); direct property/casualty insurers (up 0.58%); claims adjusting (up 0.54%); and reinsurance carriers (up 0.41%), the BLS data show.
Wages increased in four of seven insurance sectors between March and April 2016. They were led by claims adjusting (up 6.92%); insurance agencies and brokerages (up 0.88%); direct title insurance and other direct insurance carriers (up 0.85%); and third-party administration of insurance funds (up 0.50%). Wages fell from March to April in three sectors, led by reinsurance carriers (down 0.79%); direct life and health insurance carriers (down 0.74%); and direct property/casualty insurers (down 0.16%), the BLS data show.
Five of seven insurance sectors reported wage gains in April 2016 compared with April 2015. Gainers were led by direct life and health insurance carriers (up 5.01%); direct property/casualty insurers (up 3.82%); direct title insurance and other direct insurance carriers (up 2.37%); third-party administration of insurance funds (up 2.28%); and insurance agencies and brokerages (up 0.29%). Sectors showing wage losses included reinsurance carriers (down 6.14%) and claims adjusting (down 1.61%).
(By Thomas Harman, Washington Bureau manager, BestWeek: Tom.Harman@ambest.com)
