Insurance employment off to a strong start in 2021
Relatively low unemployment and increased wages indicate stability in the insurance labor market this year.
Employment in the U.S. dropped in December for the first time since April when the pandemic’s onset caused widespread layoffs and furloughs. Yet, despite the continued stress on the economy, the insurance industry ended 2020 strong with 4,900 jobs added in December, for a total of 26,400 net new jobs in 2020, according to the January edition of PULSE from The Jacobson Group.
Insurance also saw significant year-over-year (YOY) improvement in December when industry employment increased by approximately 32,900 jobs compared to December 2019.
However, the insurance industry did see a slight 0.2 percentage point increase in unemployment (3%) in December, compared to the 6.7% total U.S. unemployment rate for the same month.
Employment highlights across the industry
Jacobson taps the most recent job data from the Bureau of Labor Statistics to inform its monthly PULSE report. Overall, the metrics suggest strengthening labor markets YOY across most insurance sectors in November 2020:
- Employment in the property and casualty sector increased 0.3% YOY, and wages increased 6.8% YOY.
- Employment of agents and brokers increased 1.9% YOY, and wages increased 5.5% YOY.
- Employment in claims increased 2.5% YOY, and wages increased 2.9% YOY.
- Employment in title insurance increased 6.3% YOY, and wages increased 8.8% YOY.
- Employment in TPAs decreased 2.1% YOY, and wages increased 1.4% YOY.
- Employment in reinsurance decreased 6% YOY, and wages increased 21.8% YOY.
U.S. employment outlook
Jobless claims for the week ending Jan. 2, 2021, reached approximately 5.27 million in the U.S., according to Bloomberg. And as COVID-19 cases continue to surge nationwide, businesses continue to face restrictions that hinder job growth.
However, President Biden’s $1.9 trillion economic rescue package titled the “American Rescue Plan” could bring relief and aid to millions. The bill, which has not yet faced a vote in Congress, includes economic support measures such as a third stimulus check, extended unemployment insurance, and small-business loans. The legislation also would allocate $20 billion to create a national vaccine distribution program. Although vaccines will help restore the economy, it could be months until enough of the population is immunized to rebound the labor market.
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