Employment in the property and casualty insurance industry rose two percent in August compared to July, according to the latest U.S. employment statistics, but declined compared to August 2009 by 2.8 percent--or 13,400 jobs.

According to Robert Hartwig, president and economist at the Insurance Information Institute, the job losses stemmed from the soft market, the difficult economy, outsourcing, productivity enhancements and industry consolidation.

According to Mr. Hartwig's analysis of Department of Labor statistics, p&c insurance industry employment has dropped 25,800 through August, or 5.3 percent, since the recession began in December 2007.

At the same time, however, there has been an overall U.S. employment decline of 7.2 percent, he said, implying that the industry employment has suffered overall less than that of the entire U.S. economy.

Mr. Hartwig's analysis showed that for reinsurers, employment was up by 200 jobs in August compared to July, but down 900 compared to August 2009. Reinsurance industry employment has dropped by 800 or three percent to 26,100 since the recession began in December 2007.

For insurance agents and brokers, Mr. Hartwig said employment was down by 500 jobs in August compared to July, and down 13,500, or 2.1 percent, compared to August 2009.

For health and medical insurers, employment was down 1,100 jobs in August compared to July, and down 1.9 percent, or 8,200, in August compared to a year ago.

According to the report, health/medical insurance industry employment declined by 12,300 jobs, or 2.8 percent, to 429,600, since the recession began in 2007.