Jobs Report: Insurance Industry Added 9,600 Jobs in July
August 7, 2015 by Thomas Harman, Washington Bureau manager, BestWeek
WASHINGTON – The U.S. insurance industry continues to add jobs, picking up 9,600 in July, according to figures released Aug. 7 by the Bureau of Labor Statistics.
The seasonally adjusted 0.37% increase for July over June illustrates the continued insurance industry growth during the past year. The growth rate for July was higher than the 0.34% adjusted growth rate reported for June.
Updates to BLS data show the insurance industry added 10,400 jobs between May and June, after initially reporting an increase of 8,700 jobs in June (Best’s News Service, July 6, 2015). The adjusted number is close to the peak of 11,000 jobs added between December 2014 and January 2015 (Best’s News Service, March 6, 2015).
Overall industry employment in July is 2,555,000, an increase of 85,400 jobs and a growth rate of 3.45% from July 2014.
Total nonfarm payroll employment increased by 215,000 in July over June – less than the average gain of 246,000 per month during the last year – while the unemployment rate remained at 5.3%, the BLS reported. Job gains occurred in retail trade, health care, professional and technical services, and financial activities, while jobs in mining continued to decline, dropping 5,000 jobs in July. Jobs levels in construction, wholesale trade, information and government showed little change, the BLS said.
The private sector job increase of 215,000 is part of a 13 million increase in jobs during the last 65 consecutive months, extending the longest streak of recorded U.S. job growth, said Jason Furman, chairman of the White House Council of Economic Advisers.
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.
Between May and June, all industry sectors saw modest employment increases. Employment improved in reinsurance (up 1.99% to 25,600 jobs); direct title and other direct insurance carriers (up 1.95% to 78,500 jobs); direct life insurance carriers (up 1.32% to 361,900 jobs); third-party administration of insurance funds (up 0.78% to 179,900 jobs); direct property/casualty insurers (up 0.65% to 527,900 jobs); insurance agencies and brokerages (up 0.64% to 734,000 jobs); direct health and medical insurance carriers (up 0.62% to 517,100 jobs); and claims adjusting (up 0.59% to 50,800 jobs).
On an annual basis, seven of the eight insurance sectors showed job growth over June 2014, led by third-party administration of insurance funds (up 5.33%) and followed by direct health and medical insurance carriers (up 5.32%); direct life insurance carriers (up 4.78%); insurance agencies and brokerages (up 3.06%); direct title insurance and other direct insurance carriers (up 3.02%); reinsurance carriers (up 1.99%); and direct property/casualty insurers (up 1.25%). Only claims adjusting showed a drop, as it was down 6.45% versus June 2014.
Wages dropped in five of seven insurance sectors between May and June, led by direct title insurance and other direct carriers (down 2.31%); third-party administration of insurance funds (down 1.57%); direct life and health insurance carriers (down 1.25%); reinsurance (down 0.99%); and insurance agencies and brokerages (down 0.77%). Wages increased by 0.14% in both direct property/casualty insurers and claims adjusting.
Wages increased in three insurance sectors in June 2015 compared with June 2014, led by direct title insurance and other direct insurance carriers (up 10.68%); reinsurance carriers (up 8.68%); and direct property/casualty insurers (up 0.70%). But wages were lower in four sectors – third-party administration of insurance funds (down 6.42%); claims adjusting (down 4.97%); insurance agencies and brokerages (down 4.22%); and direct life and health insurance (down 1.59%).
(By Thomas Harman, Washington Bureau manager, BestWeek: Tom.Harman@ambest.com)
BN-NJ-8-7-2015 1519 ET #