US Bureau of Labor Statistics: Insurance Industry Lost 2,100 Jobs in June
July 10, 2017 by Thomas Harman
WASHINGTON – The insurance industry lost 2,100 jobs in June 2017 over May 2017, according to U.S. Bureau of Labor Statistics figures released July 7.
The decrease was 0.08% for June 2017 over May 2017 and runs counter to high growth figures recorded within the past year. Small insurance industry job losses of 600 and 2,100 were recorded in March 2017 and November 2016 respectively. Updated preliminary jobs estimates for May 2017 showed jobs increased by 2,700 over April 2017, which is 900 higher than the initial projection of 1,800 (Best’s News Service, June 2, 2017).
Year to year, overall insurance industry employment for June 2017 was 2,622,900, a preliminary increase of 40,800 jobs over the June 2016 level.
Total nonfarm payroll employment nationwide increased by 222,000 in June 2017, compared with May 2017, while the overall unemployment rate increased to 4.4% in June, compared with 4.3% in May. The number of unemployed increased slightly from the 6.9 million reported in May to 7 million. Employment rose in health care, social assistance, financial activities, and mining, the BLS said.
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.
Five of the eight insurance sectors experienced slight job growth in May 2017 from April 2017, led by direct property/casualty insurers (up 0.48% to 566,800 jobs); direct title insurance and other direct insurance carriers (up 0.43% to 94,100 jobs); insurance agencies and brokerages (up 0.40% to 784,100 jobs); direct health and medical insurance carriers (up 0.23% to 472,400 jobs); and claims adjusting (up 0.17% to 58,500 jobs). Losses were reported in direct life insurance carriers (down 0.54% to 349,900 jobs); and reinsurance carriers (down, 0.40% to 24,700 jobs). Third-party administration of insurance funds remained flat at 187,000 jobs.
On an annual basis, seven of eight insurance sectors showed job increases in May 2017 over May 2016. This group was led by direct title insurance and other direct insurance carriers (up 3.63%); direct health and medical insurance carriers (up 3.19%); direct property/casualty insurers (up 2.02%); direct life insurance carriers (up 1.13%); insurance agencies and brokerages (up 1.11%); claims adjusting (up 1.04%); and third-party administration of insurance funds (up 0.70%). The lone sector showing a decrease was reinsurance carriers (down 0.4%).
Average weekly wages fell in all seven insurance sectors in May 2017 versus April 2017, led by insurance agencies and brokerages (down 5.63%); reinsurance carriers (down 5.41%); third-party administration of insurance funds (down 4.68%); direct property/casualty insurers (down 4.31%); direct life and health insurance carriers (down 4.09%); claims adjusting (down 3.48%); and direct title insurance and other direct insurance carriers (down 2.56%).
On an annual basis, average weekly wages dropped substantially in six of seven insurance sectors in May 2017 over May 2016, led by reinsurance carriers (down 8.68%); claims adjusting (down 7.90%); direct title insurance and other direct insurance carriers (down 7.37%); insurance agencies and brokerages (down 5.35%); direct property/casualty insurers (down 4.42%); and direct life and health insurance carriers (down 2.93%). The lone sector showing a wage increase was third party administration of insurance funds (up 3.19%).
(By Thomas Harman, Washington Bureau manager, BestWeek: Tom.Harman@ambest.com)
