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Letter to the editor

Jobless rate is losing its shine

Construction slumps while the leisure and hospitality industries experience growth.

By Christina Rexrode, Times Staff Writer
Published August 18, 2007

Florida's low unemployment rate makes it a mecca for job seekers. But that admirable distinction could be fading, thanks in large part to a slumping construction industry.

The state's jobless rate edged significantly upward in July to 3.9 percent, higher than it's been for two years. That's up from 3.5 percent a month ago, and 3.3 percent a year ago, according to state and federal data released Friday.

Eleven other states also experienced statistically significant month-to-month increases in their jobless rates, according to the Bureau of Labor Statistics. The rates of the rest held steady.

Still, Florida is in a better position than most. Unemployment here remains well below the national average of 4.6 percent.

"We are still basically at full employment," said Renee Benton, president and CEO of the Tampa Bay WorkForce Alliance.

"That is not to say that everyone is happy in terms of what they're getting paid, but in terms of being employed, we're doing well. ..."

People can still find plenty of jobs here, Benton said. But they must be willing to work in a new sector if their current one is faltering.

Construction is one of those faltering sectors. Its heavy losses - it shed 17,900 jobs in the past year - helped drive up the state's unemployment rate. Economists expect that industry to remain weak throughout 2008.

The manufacturing and information industries also lost jobs over the year.

But Florida did not lose jobs across the board. The state, a destination of many a retiree and tourist, added 31,400 jobs in health services, and 36,400 in leisure and hospitality.

"Those are the two sectors that have really kept you guys afloat," said Chris Cunningham, an economist in the Atlanta office of the Bureau of Labor Statistics.

In fact, Florida ranked third in the country in the number of jobs created over the year, trailing only Texas and California.

But Jonathan Hamilton, chairman of the economics department at the University of Florida, wasn't impressed.

"Our population ordinarily grows faster than other states," he said, "so our job growth would have to be greater."

Besides that, the state's job growth has slowed significantly in recent years when it used to lead the country.

Part of Florida's pullback could be because government is starting to put the brakes on its job-creating spree. That's no surprise, considering the new mandates of frugality caused by a huge state budget shortfall.

A year ago, state and local governments had added 22,000 jobs. But since last month, Florida has lost 2,700 government jobs.

Fast Facts:

By the numbers
3.9 percent: State unemployment rate.
364,000: Unemployed Floridians, meaning people without a job who are actively seeking one. (Up 41,000 over the month, and 71,000 over the year.)
9.23-million: Civilian labor force in Florida, meaning people who have a job or are actively looking for one.
127,100: Jobs created in Florida over the year.
18,000: Number of those jobs that were in the Tampa Bay area.
391,000: Jobs created in Florida over the year in September 2005, thanks to hurricane recovery and the housing market.
2.4 percent: Unemployment in Walton County, the lowest in the state.
9.9 percent: Unemployment in Hendry County, the highest in the state. (Due to seasonal declines in agriculture.)Source: Florida Agency for Workforce Innovation

[Last modified August 17, 2007, 22:27:28]