Unexpected Jobs Decline Hits Title Insurers: What Effect on Coverage?

    Before Friday, September 7, 2007 many economists expected the United States economy to add 100,000 jobs in the preceding month.  Instead, the U.S. economy lost 4,000 jobs in August, 2007.

     It is reported that service industries, a category which includes most Insurance Companies, ran counter to the payroll reductions event and added 60,000 jobs in August, 2007 after adding 78,000 workers to the payrolls in July, 2007.

    Two Title Insurance Companies, however, are reported to have indeed lost workers and reduced their payrolls.  They are apparently displaying the continuing effects of an economy in which fewer people are purchasing either homes or title insurance:  First American Corporation, said to be the largest Title Insurance Company  in the United States, and LandAmerica Financial Group Inc.  First American reportedly has reduced or will reduce its payroll by no longer employing 1,300 people; the number of workers sent home by LandAmerica is reportedly 1,100.  See Bob Willis, "U.S. Economy:  Employment Unexpectedly Drops in August (Update 7)" (Bloomberg.com, Friday, September 7, 2007).

     Time will tell what effects, if any, fewer people working at Title Insurance Companies will have on Insurance Coverage Claims on Title Insurance Policies particularly if, in the future, the U.S. economy makes Claims more attractive.

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