Direct life and health insurers cut 1,700
Claims adjusting employment fell by 2,500 jobs from October to November, the steepest decline among insurance segments tracked by the US Bureau of Labor Statistics.
Other insurance categories also reported job reductions over the same period, based on the BLS’ unadjusted industry segment data. Direct life and health insurers posted 1,700 fewer jobs, while direct property/casualty insurers cut 1,500 positions. Agencies and brokerages reported 800 fewer roles, and reinsurers lost 100 positions.
Some segments recorded gains. Pharmacy benefit managers and other third-party administrators added 500 jobs from October to November, the largest increase among the insurance categories measured by the BLS. Direct title and other direct insurance carriers recorded the second-largest increase, adding 300 positions.
The segment-level changes preceded a decline in overall insurance employment in December. The US insurance industry lost 1,800 positions in December compared with the month prior, according to preliminary BLS figures. Total industry employment in December was 3.02 million. The BLS compared that with 3.01 million in December 2024.
While the industry cut jobs in December, the pace of losses slowed from November, when insurance employment dropped by 9,200, according to the bureau.
Across the wider labor market, total nonfarm payroll employment increased by 50,000 positions in December and the unemployment rate remained relatively unchanged at 4.4%, the BLS said.
For 2025, payroll employment rose by 584,000, for an average monthly gain of 49,000 jobs, the bureau reported. In comparison, 2024 saw two million jobs created and an average monthly gain of 168,000.
The BLS reports total insurance payrolls each month on a seasonally adjusted basis alongside nonfarm payroll data. Industry segment figures - including employment across insurance carriers and noncarrier categories - are released separately on an unadjusted basis for the prior month.
Stephen Cooper, executive director and senior economist at the National Council on Compensation Insurance, said job gains in 2025 represented the slowest pace of annual job growth outside of a recession since 2003. Cooper said healthcare and social assistance added jobs during the year, while government jobs declined and manufacturing posted its third straight year of declines.
Cooper said 2025 was a "was a low-hire, low-fire environment where moderating but still solid wage growth offset sluggish employment growth to support overall payroll growth for workers' compensation."
He also said payroll growth was 4.3%, down from 4.6%, adding that payroll growth is a more important measure for workers’ compensation than unemployment data alone.
Separate industry research suggested many insurers still anticipate stable or higher staffing levels. In the third-quarter 2025 Insurance Labor Market Study released Aug. 19 by The Jacobson Group and Aon plc, 86% of insurance companies said they planned to increase or maintain staff levels in the next 12 months, including 53% expecting to add employees and 33% expecting to maintain staffing. Fourteen per cent (14%) reported plans to reduce headcount. The report projected industry employment could rise 1.03% over the next 12 months if carriers follow through on their plans.
The BLS said the January jobs report is scheduled to be released February 6.