Unemployment Insurance Market Report 2024

This Unemployment Insurance market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The unemployment insurance market size has grown strongly in recent years. It will grow from $91.97 billion in 2023 to $98.38 billion in 2024 at a compound annual growth rate (CAGR) of 7%. The growth observed in the historic period can be attributed to rising inflation rates, escalating cost of living, a growing number of bankruptcies, increased outsourcing of jobs overseas, and more frequent economic recessions.

The unemployment insurance market size is expected to see strong growth in the next few years. It will grow to $129.91 billion in 2028 at a compound annual growth rate (CAGR) of 7.2%. The anticipated growth during the forecast period can be attributed to several factors such as rising automation in the workforce, the growing prevalence of remote work, increased globalization, higher investments in smart city infrastructure, and escalating cyber threats. Key trends expected in this period include advancements in technology, the adoption of artificial intelligence, blockchain technology, augmented reality, and the integration of the Internet of Things.

Rising job insecurity is expected to drive the growth of the unemployment insurance market. Job insecurity refers to the uncertainty or fear of losing one's job or experiencing reduced employment status, such as fewer hours or lower wages. This increase in job insecurity is attributed to economic uncertainty, the rise of contract and gig work, corporate restructuring, sector-specific challenges, and changes in the workplace. Unemployment insurance (UI) helps address job insecurity by providing financial support and stability to individuals who lose their jobs or face reduced working hours. For example, Lancaster University reported in February 2024 that the UK insecure work index rose by 500,000 people in 2022 and 600,000 people in 2023. This growing job insecurity is driving the expansion of the unemployment insurance market.

Key players in the unemployment insurance market are focusing on developing advanced digital solutions, such as online insurance platforms, to streamline the application process and improve accessibility. Online insurance platforms enable users to purchase, manage, and track insurance policies via the Internet. For instance, in March 2024, the Oregon Employment Department (OED) launched Frances Online, a new digital system for managing unemployment insurance benefits and Paid Leave Oregon applications. This platform allows employees and claimants to apply for benefits, upload necessary documents, and manage their claims online, representing a significant advancement in processing claims in Oregon and reflecting a broader trend toward digital solutions in public services.

In May 2022, Ernst & Young LLP (EY), a UK-based consulting firm, acquired Unemployment Solutions for You LLC for an undisclosed amount. This acquisition aims to enhance EY's capabilities in unemployment insurance and technology solutions, expanding its service offerings and integrating innovative technologies to better support clients in managing and optimizing their unemployment insurance processes. Unemployment Solutions for You LLC, a US-based company, specializes in unemployment claims management and cost control solutions for businesses.

Major companies operating in the unemployment insurance market are Cigna Corporation, Allianz SE, State Farm Mutual Automobile Insurance Company, The Allstate Corporation, Banco Bilbao Vizcaya Argentaria S.A., Achmea B.V., Banco Bradesco S.A., CNP Assurances S.A., Assurant Inc., Cook County Government, Great American Insurance Group, Hiscox Ltd., American Association of Retired Persons, Anadolu Hayat Emeklilik A.Ş., BNP Paribas Cardif, Allied Solutions LLC, G&A Partners, Paisabazaar.com, Garanti BBVA Emeklilik ve Hayat A.Ş., AlfaStrakhovanie, Axcet HR Solutions, Aegon Asset Management, Flex HR LLC, LifeQuote Inc., Personnel Planners.

North America was the largest region in the unemployment insurance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the unemployment insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the unemployment insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Unemployment insurance is a government-funded financial assistance program designed to provide temporary income support to individuals who have lost their jobs through no fault of their own. This program aims to help unemployed workers cover basic needs while they search for new employment opportunities.

The primary types of unemployment insurance include structural unemployment, cyclical unemployment, frictional unemployment, and others. Structural unemployment occurs when there is a mismatch between the skills workers possess and those required for available jobs. Different types of unemployment insurance include involuntary unemployment insurance and mortgage unemployment insurance, with various distribution channels such as agents or brokers, direct response, banks, and others.

The unemployment insurance system market research report is one of a series of new reports that provides unemployment insurance system market statistics, including unemployment insurance system industry global market size, regional shares, competitors with an unemployment insurance system market share, detailed unemployment insurance system market segments, market trends and opportunities, and any further data you may need to thrive in the unemployment insurance system industry. This unemployment insurance system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The unemployment insurance market includes revenues earned by entities by providing services such as eligibility assessment, job search assistance, skill development programs, and reinsurance arrangements. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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