The results from our latest Semi-Annual U.S. Insurance Labor Outlook Study are now in!
Despite this positive outlook, insurers face an increasingly challenging labor market as the demand for talent continues to far surpass the current supply. Since its low in April 2011, the industry has seen a growth of more than 60,200 new jobs. In January 2015, staffing in insurance reached 1,481,000—the highest the industry has seen since July 2004. Add in 236,000 job openings within insurance and it is clear that the labor market is in the midst of a drastic tightening.
In addition, the unemployment rate remains low. According to the BLS, the January 2015 unemployment rate for the insurance industry was 2.3 percent, a much lower rate than the 5.7 percent reported for the national economy. While the insurance industry is enjoying a period of relative stability, the low unemployment rate is lending to the current talent crunch.
To combat the growing talent shortage and meet the growing industry needs, insurance organizations are focused on building their talent pipelines and engaging their current employees. Many insurers are turning toward the incoming wave of Millennial professionals to provide a solution to their talent needs. With Millennials making up an estimated 25 percent of the workforce they present a unique opportunity for the industry to bring in fresh talent. Engaging and recruiting these bright, young professionals may be the key to successfully weathering the growing talent storm.
While things are certainly looking up within the insurance industry, the positive outlook must not be allowed to overshadow the growing challenges in recruiting for key industry positions. Organizations must begin preparing now lest they find themselves unable to meet their growing needs. The key is to think ahead and begin building a bench of emerging insurance talent.
Download the full results from the survey.