Labor Department Data Shows Insurance Industry Lost 1,700 Jobs in January
February 3, 2018 by Thomas Harman
WASHINGTON – The insurance industry lost 1,700 jobs in January 2018 from December 2017, according to the U.S. Bureau of Labor Statistics.
Overall insurance industry employment for January 2018 was 2,663,100, a preliminary increase of 26,900 — about 1.02% — over the January 2017 level.
Total nonfarm payroll employment nationwide increased by 200,000 in January 2018, compared with December 2017, while the overall unemployment rate remained unchanged at 4.1% for the second consecutive month.
The number of unemployed increased slightly to 6.7 million in January 2018 compared with the 6.6 million reported in December 2017. January job gains occurred in construction, food services and drinking places, health care, and manufacturing.
The BLS reports insurance industry total payrolls monthly on a seasonally adjusted basis, along with the current month’s nonfarm 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, in this case December 2017.
Four of the eight insurance industry sectors made jobs gains in December 2017 over November 2017, led by direct property/casualty insurers (up 2.33% to 556,700 jobs); third-party administration of insurance funds (up 0.58% to 190,500 jobs); direct life insurance carriers (up 0.41% to 346,800 jobs); and direct health and medical insurance carriers (up 0.14% to 507,000 jobs).
Three insurance industry sectors showed job losses in December 2017 over November 2017, led by claims adjusting (down 4.51% to 59,300 jobs); reinsurance carriers (down 0.38% to 25,900 jobs); and insurance agencies and brokerages (down 0.01% to 808,800 jobs). Jobs in direct title insurance and other direct insurance carriers remained flat at 92,100 jobs for December.
On an annual basis, five of the eight insurance industry sectors showed job growth in December 2017 over December 2016. These were led by direct health and medical insurance carriers (up 3.58%); direct property/casualty insurers (up 2.94%); insurance agencies and brokerages (up 1.20%); third-party administration of insurance funds (up 0.79%); and direct title insurance and other direct insurance carriers (up 0.77%). Sectors that showed year-to-year job losses were led by direct life insurance carriers (down 1.31%); claims adjusting (down 1%); and reinsurance carriers (down 0.38%).
Wages increased in just two of seven insurance sectors in December 2017 compared with November 2017, a month in which preliminary figures showed drops in every category compared with October. Sectors where wages dropped were led by claims adjusting (down 3.41%); direct title insurance and other direct insurance carriers (down 2.13%); direct property/casualty insurers (down 1.13%); reinsurance carriers (down 0.84%); and third-party administration of insurance funds (down 0.43%). Sectors where wages rose from December 2017 over November 2017 were insurance agencies and brokerages (up 1.15%); and direct life and health insurance carriers (up 0.72%).
On an annual basis, average weekly wages increased in four of seven insurance sectors in December 2017 over December 2016, led by claims adjusting (up 7.08%); third-party administration of insurance funds (up 4.13%); insurance agencies and brokerages (up 3.41%); and direct life and health insurance carriers (up 0.64%). Sectors where wages fell year-to-year were led by direct title insurance and other direct insurance carriers (down 6.86%); reinsurance carriers (down 4.7%); and direct property/casualty insurers (down 1.59%).
(By Thomas Harman, Washington Bureau manager, BestWeek: Tom.Harman@ambest.com)
