The Talent Pulse:
What's Next in the World of Work

Financial Services & Insurance

In the rapidly evolving financial services and insurance (FINS) sectors, talent isn't just a differentiator; it's the bedrock of success.

The economic shifts, technological leaps, and dynamic regulatory environment of 2025 demand a workforce that's not only highly skilled but also highly adaptable and strategically managed.

For our FINS clients, prioritizing
a forward-thinking talent strategy is the only path to sustained leadership.

Mid-Year Trends Show Talent Challenges Remain

The changing global economic landscape is adding significant pressure on FINS organizations to adapt, and we are supporting our clients as they navigate the challenges and opportunities of today's evolving workforce.

Weakening Labor Market

The August 2025 U.S. jobs report from the Bureau of Labor Statistics (BLS) indicated a significant slowdown in hiring, with only 22,000 nonfarm payroll jobs added, below economists' expectations of about 80,000. The unemployment rate edged up to 4.3% from 4.2% in July, representing the highest level since October 2021. These numbers suggest a weakening labor market, a trend likely to be considered by the Federal Reserve when setting interest rates.

Within this, the financial activities sector saw a loss of 3,000 jobs showing overall weakening in the labor market.

Evolving Skills Demands

The rapid automation of routine tasks elevates demand for analytical, digital, and interpersonal skills. As Forbes highlights, financial leaders will require adaptability, accountability, and the ability to extract "real value" in an AI-driven world.

For our FINS clients, this translates to a pressing need for expertise in risk management; fintech proficiency; regulatory compliance; robust financial and data analysis (including modeling); and environmental, social, and governance (ESG) knowledge.

Increased Talent Mobility

Professionals actively seek growth, continuous skill development, and alignment with their values. FINS organizations need to attract and retain top talent by aligning opportunities with these evolving priorities.

Adapt to Evolving Regulations and Rising Compliance Demands

Evolving regulations directly influence FINS workforce needs, creating new demands for specialized expertise.

Rising Demand for Compliance Experts:

According to Kroll, nearly 50% of financial professionals expect increased financial crime risk in 2025, and keeping up with evolving regulations was cited as their biggest challenge in sanctions compliance. PwC data shows 90% of FINS firms have seen increased compliance responsibilities in the last three years. This fuels demand for experts in Know Your Customer (KYC), Anti-Money Laudering (AML), and General Data Protection Regulation (GDPR).

Cybersecurity and Data Privacy:

New AI and cybersecurity guidelines, led by states like New York and Colorado, alongside National Association of Insurance Commissioners (NAIC) frameworks for data and predictive models, create a critical need for cybersecurity professionals to ensure compliance and manage third-party risk.

Consumer Protection Focus:

EY's 2025 Global Regulatory Outlook finds that regulators are increasingly focused on ensuring positive outcomes for consumers, leading to increased scrutiny of sales practices and a push for greater financial inclusion and fraud prevention. This translates to a demand for professionals with strong ethical grounding and customer-centric approaches.

Tech Talent Needs Surging in Financial Services

Digital transformation is fundamentally reshaping the financial services workforce. The way FINS organizations strategize and align their talent with these shifts can create competitive advantages and help stay ahead of the market.

Challenges & Opportunities

As financial institutions increasingly leverage AI, the demand for specialized tech talent is surging. Specialists in demand include:

Data Scientists: To drive advanced analytics and strategic insights.
AI/ML Specialists: To develop cutting-edge solutions for fraud detection, algorithmic trading, and enhancing the customer experience.
Cybersecurity Experts: To safeguard sensitive data against increasingly sophisticated threats.
Cloud Computing Specialists: Essential for seamless migration and operation in cloud environments.

Source: Deloitte

Tech Talent and AI Reshape Insurance

The insurance sector faces similar transformative talent shifts as those affecting financial services organizations. These shifts are driven by technology and evolving customer expectations.

Challenges & Opportunities:

Tech Talent Gaps: While overall insurance vacancies may stabilize, IT roles are projected to rise significantly, comprising a large percentage of all open positions. This growth is concentrated in data science, cybersecurity, and automation, with strong demand for data engineers and data analysts.
Upskilling Imperative: Rapid technological advancements necessitate continuous learning. With Deloitte projecting 50-70% of insurers' technology budgets will be allocated to digital transformation (including AI in underwriting, claims, and customer service), the need for upskilling is urgent.

A McKinsey Global Institute report estimates that 10% of the global workforce may need to shift occupations and reskill by 2030.
Automation of Routine Tasks: AI and automation are poised to reduce the need for traditional roles and automate repetitive tasks, such as claims handling. According to a report by Bain & Company, this area could see a reduction in loss-adjusting expenses by up to 25% and profit erosion by 30-50% with generative AI.

According to an IBM survey, 77% of industry executives feel pressure to quickly adopt generative AI to remain competitive. Insurance companies are rapidly increasing their investment in gen AI, with spending projected to grow over 300% from 2023 to 2025, even as they balance the need for new capabilities with risk management.