After 6 Months of Gains, P&C Carriers Shed Jobs in August

Property and casualty insurers saw their six-month streak of employment gains broken in August, as the sector shed 1,200 jobs in the month compared to July.

In an analysis of the latest figures from the U.S. Labor Department's Bureau of Labor Statistics figures, Insurance Information Institute President Robert Hartwig says the August drop was expected. 

“[H]istorically, P&C employment almost always falls in August vs. July,” says Hartwig. “In the 23 years starting with 1990 — as far back as BLS data go — August employment changes by P&C insurers was flat twice, rose once, and fell 20 times.”

He continues, “Moreover, the one up month was not a true count of employment, since it was part of a year-long phase in of a new baseline.”

While employment from July to August was down for P&C insurers, the sub-sector is up by 800 jobs compared to August 2011. 

Agents and brokers added 300 jobs in August compared to July, a turnaround from the loss of 700 jobs in July. Before July, the sub-sector had added 3,000 jobs over from April to May. Compared to August 2011, employment is up by 7,500 jobs.

the “title and other direct” sub-sector saw the biggest monthly gain in employment, rising by 1,400 jobs. Life insurers saw the largest drop in the month, shedding 1,400 jobs.

Reinsurers and claims adjusters shed 300 jobs each during the month.

Health insurers, meanwhile, added 600 jobs. Hartwig says, “Employment at insurers providing mainly health and medical insurance will bear watching in the coming months. It is possible employers were holding down hiring pending the U.S. Supreme Court decision on the Affordable Care Act, which was delivered in late June. 

“Now that the act has been upheld, we expected to see hiring by this sub-sector, as it prepares for potentially millions of new customers.”

Across all sub-sectors, industry employment was down by 700 jobs in August compared to July.