According to a report released by the Florida Department of Economic Opportunity on Friday, the state’s unemployment rate remained steady at a near-historic low of 2.6 percent in May, unchanged since January. Around 287,000 Floridians were considered unemployed out of a labor force of 10.998 million.
This rate was lower than the national rate of 3.7 percent for the same period and decreased from 2.9 percent in May of the previous year. Although there was a slight increase of 6,000 unemployed individuals compared to April, it was still a decrease of 22,000 from May 2022.
Governor Ron DeSantis’ office highlighted that private-sector employment in Florida grew by 17,200 jobs in May, outpacing the national pace.
Jimmy Heckman, the chief of workforce statistics and economic research at the Department of Economic Opportunity, expressed optimism about the state’s potential for further improvement due to population growth and its leading position in business formations in recent years.
However, Heckman cautioned that achieving the unemployment rate of 2.4 percent seen in spring 2006 might be challenging.
One sector experiencing a decline in Florida is construction, which saw a drop of 1,600 jobs in May and has been decreasing for the past five months. The decline is more pronounced in South Florida, while regions like Jacksonville and Tampa Bay have shown growth, according to Heckman. The reason behind the construction job decline was not addressed in the report, although rising mortgage rates affecting housing demand were cited as a possible factor in the previous month.
Sadaf Knight, CEO of the Florida Policy Institute, raised concerns about the impact of a new immigration law (SB 1718) on people’s decision to work in the state. Knight mentioned a “culture of fear” and a “chilling effect” caused by the law, which requires employers with 25 or more employees to use the federal E-Verify system for worker eligibility verification. The potential influence of the law on migration patterns could have repercussions for the labor market.
Despite the recent decline in construction jobs, the sector has seen an overall increase of 6,200 jobs over the past year. The release of the state report coincided with a slowdown in inflation, with the U.S. Bureau of Labor Statistics reporting a rate of 4 percent, the lowest since March 2021. This easing of inflation is seen as a positive sign, as consumers have not reduced their spending despite rising costs.
In terms of regional unemployment rates, the Crestview-Fort Walton Beach-Destin area had the lowest rate at 2.3 percent in May. The Miami-Fort Lauderdale-West Palm Beach, Naples-Immokalee-Marco Island, and Panama City regions each had rates of 2.4 percent.
The Orlando-Kissimmee-Sanford, Tampa-St. Petersburg-Clearwater, Pensacola-Ferry Pass-Brent, and Jacksonville areas had rates of 2.7 percent. The areas with the highest unemployment rates were Sebring at 4 percent, Homosassa Springs at 3.9 percent, and The Villages at 3.7 percent. It’s important to note that the statewide unemployment rate is seasonally adjusted, while regional rates are not.
