Mixed year: Professional services firms have been in strong demand but the insurance sector faces challenges

Mixed year:

Professional services firms have been in strong demand but the insurance sector faces challenges

It has been a mixed year for professional services companies, which encompass accounting, financial advising, insurance, legal, consulting and staffing firms. On the one hand, demand for financial advising and legal services soared as the world became a little more uncertain after the COVID-19 pandemic hit. On the other hand, the insurance industry faced unique challenges related to pandemic pay-outs while staffing firms, which saw demand for services drop in March 2020, have been overwhelmed by new demand for employees since the economy began to reopen.

While many people within professional services were able to transition easily to home office, there were still some job losses caused largely by the uncertainty. But unemployment in the financial and professional services sectors were minimal in comparison to other sectors and, as of March 2021, most firms had regained their employment footing. In fact, according to think tank ResearchAndMarkets.com, the market has a great deal of growth ahead of it. From 2021, the global professional services market is expected to grow at around 7% CAGR to reach $6.52 trillion by 2023. Landscape

In the Fort Lauderdale-Pompano Beach-Deerfield Beach metro, April 2020 saw 9.8% of professional services jobs lost month-on-month, with much of the downsizing on the heels of pandemic-related uncertainty and sudden shutdowns. In April, South Florida law firm Greenspoon Marder, for example, announced it would lay off 40 staff members and five attorneys, with Holland & Knight following in May with salary reductions and staff furloughs. Akerman also “resized” its workforce by implementing salary cuts and limiting draws for partners.

Ultimately, financial services were deemed essential, and soon the pandemic created an uptick in demand. Wealth management firms and law firms with this practice area soon saw clients eager to plan for the future in the face of so much uncertainty. Firms reported sudden gains in demand for services related to wealth management and succession planning. Law firms, tax advisers and financial services firms also saw a significant number of queries and consultations related to the Payment Protection Program (PPP), which was hastily rolled out