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Insurance firms: 15% to decrease temp use in second half, survey finds

August 31, 2015

While most insurance companies still plan to add staff this year, their plans for temp use are down, according to the semi-annual US Insurance Labor Outlook Study conducted by The Jacobson Group and Ward Group.

The survey found 15% of insurance companies plan to decrease their use of temporary staffing during the second half of the year, compared to 10% reporting the same six months ago. The survey also found 9% plan to increase use of temporary employees during the next six months, and 76% plan to maintain temp employment levels.

However, the survey found 65.4% of insurance companies plan to increase their total staff numbers during the next 12 months. This is seven points higher than the July 2014 survey and the second highest percentage since the survey began in 2009. The survey found 3.7% of companies expect a decrease in staffing during the next 12 months, and 30.9% expect no change.

The primary reason to increase staff during the next 12 months is the expectation of an increase in business volume; 53% of companies listed this as the primary reason-to-hire compared to 44% who reported that areas are currently understaffed.

“The survey results show revenue growth predictions dropping to their lowest rate in three years,” said Gregory Jacobson, co-CEO of Jacobson. “Despite this drop, staffing predictions are at their second-highest rate since the economic downturn. The industry is clearly focused on filling positions and growing staff.”