Floridas jobless rate remained at 11.9 percent in October, the same as in the previous month, according to a report released Friday by the Agency for Workforce Innovation.
The reports seasonally adjusted statistics gave conflicting messages for the employment outlook in the near future. Hiring has increased in five industries, but declined in five others. Florida had the largest decrease in first-time unemployment benefits last week, but foreclosure rates remain high.
While Floridas unemployment rate did not decrease this month, we continue to see positive signs of stabilization and growth, said AWI Director Cynthia Lorenzo.
Florida added 6,900 nonagricultural jobs in October, and has 35,700 more jobs than in October 2009. Job gains in private education and health services, leisure and hospitality, trade, transportation and utilities and professional services offset losses in construction, financial activities, information, manufacturing and government.
The private education and health services industry gained the most jobs in the past 12 months, adding 25,500 jobs. Construction has the largest decline in the same period, with 13,800 jobs lost.
Underemployment, or the amount of workers in jobs with unmatched skills or in involuntary part-time jobs, adds 8 percent to the unemployment rate, meaning nearly one in five Florida workers is unemployed or underemployed. This rate was also unchanged from the previous month.
The Florida counties with the lowest unemployment rates -- Liberty (6.9 percent), Leon (7.7 percent), Alachua (7.8 percent), Okaloosa (7.8 percent) -- have high levels of government employment. Counties with high unemployment rates -- Hendry (18.3 percent), Flagler (15.5 percent), St. Lucie (14.7 percent), Hernando (14.3 percent) -- are typically those with a large agricultural sector.
Governor-elect Rick Scotts campaign platform of cutting government spending could threaten the unemployment figures of those low-rate counties -- especially in Liberty County, where a state prison is one of the largest employers -- but tax hawks are convinced that private-sector growth will more than offset government job losses.
I think the businesses will react more quickly. Many of the gains will be immediate, Robert Weisert, Florida TaxWatch vice president for research, said of Scotts plans.
Heading into the holidays, seasonal hirings are expected to increase to 40,000 this year, up about 10,000 from last year. Retailers also expect sales to increase 4 percent over last year.
External factors, however, could dampen the job markets holiday spirit. The states minimum unemployment compensation tax was nearly tripled earlier this week, from $25.20 to $75.10 per worker. The maximum rate stayed the same at $378, but the increase disproportionately hurts small businesses since larger employers with more layoffs already pay the maximum rate.
Congress failed to approve an extension of unemployment benefits this week, meaning that more than 100,000 Floridians will lose their benefits on Dec. 4, with 40,000 more dropped each week.
Generally, the unemployed spend their unemployment compensation benefits, thus spurring the economy, AWI chief economist Rebecca Rust said.
But others are convinced the private sector must drive the job recovery.
I think from a fiscal standpoint the benefits have to end. Neither the country nor the state can afford to keep on paying for them, said Tamela Perdue, general counsel for Associated Industries of Florida.
Perdue said that businesses had expected the unemployment compensation tax to increase, but not to triple. The tax hike is another consideration for businesses to make in calculating hires for the next year, but some could be able to form a payment plan to finance the increase.
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Reach Gray Rohrer at grohrer@sunshinestatenews.com or at (850) 727-0859.
