The US insurance industry lost 10,700 positions in May, extending a contraction now three consecutive months long. The broader economy, by contrast, added jobs at a steady pace over the same period.
The May figure deepens losses of 9,100 in April and 5,700 in March. While leisure and hospitality, local government, and healthcare drove broader gains, the wider financial activities sector declined alongside insurance. The US economy, on other hand, added 172,000 jobs in total.
The May result is part of a longer slide. The industry shed 11,300 positions in January, with total employment falling to 2.98 million. This figure is down 40,000 positions, or 1.3%, from 3.02 million a year earlier.
Life and health insurers took the hardest hit in the April segment data, shedding 8,400 positions, the largest reduction of any sector. Insurance agencies and brokerages cut 2,200 jobs, while pharmacy benefit managers and third-party administrators shed 400 positions.
Not every corner of the industry moved in the same direction. Reinsurers added 800 jobs and claims adjusting gained 600. Direct property and casualty (P&C) insurers added 200 positions, while direct title and other direct carriers added 100.
The Bureau of Labor Statistics (BLS) revised job figures from the prior two months upward by 93,000 positions. The three-month average for nonfarm job growth reached 188,000 per month.
Stephen Cooper, practice leader and senior economist for the National Council on Compensation Insurance (NCCI), pointed to an unexpected surge in job openings in April, which reached their highest level since early 2024.
“While just one data point, a rise in labor demand could continue to support robust job growth going forward and will be worth watching closely,” he said.
A rise in new employees could push down average hourly earnings, Cooper noted. But he said wage growth remains solid, with wages and employment together lifting payrolls, a key metric for workers’ compensation premiums.
If those trends hold, he said, payroll growth should accelerate through year-end.
This optimism sits alongside a harder set of numbers. A Q1 2026 Insurance Labor Market Study found P&C industry headcount grew only 0.81% from January 2025 to January 2026, well below the anticipated 1.42%. Automation requiring fewer staff was the most common reason firms cited for cutting positions.
The pattern is becoming clearer in hiring intentions. A separate Q1 2026 study by The Jacobson Group and Aon’s Strategy and Technology Group found that only 7% of insurers plan to reduce staff over the next 12 months. However, automation and process improvement were the leading reasons cited for those reductions, ahead of reorganization and overstaffing.
Cooper said the central labor market question has shifted from whether conditions are stabilizing or deteriorating.
“While still early, positive signals of labor market acceleration are beginning to stack up,” he said.
The next jobs report is due July 2.
