Florida’s jobless rate nearly triples
April figure at 12.9% after state’s worst month for claims
Florida’s unemployment rate skyrocketed to 12.9% in April as the coronavirus pandemic triggered massive layoffs in industries that form the foundation of the state’s once-vibrant economy, the U.S. Department of Labor reported Friday.
The month was the worst ever for unemployment claims, according to state figures. The rate, which was 4.4% in March, fell short of the national level, which was 14.7%.
Hospitality, lodging, transportation and even health care were among the hardest hit as the government forced businesses to close by the thousands, prompting managements to furlough or permanently terminate employees.
In Southeast Florida, Broward County’s unemployment rate soared to 14.5% for the month, up from 4.2% in March, according to the state Department of Economic Opportunity. Palm Beach County’s rate rose to 13.9% from 4.4% in March, while Miami-Dade’s rose to 11.9% from 3.8% in the previous month.
Statewide, Florida businesses lost 989,600 privatesector jobs over the year, the agency said. The leisure and hospitality industry saw the biggest year-over-year plunge in employment, losing 52,700 jobs or 39% of its work force since April of 2019.
“Not a surprise, but still shocking to realize just two months ago the [state] unemployment rate in February was 2.8%,” said Sean Snaith, director of the Institute for Economic Forecasting at the University of Central Florida.
Job losses are continuing well into May, as new unemployment claims passed 223,000 in each of the first two weeks of the month. Layoffs in the agriculture, forestry, fishing, and hunting, manufacturing, wholesale and retail trades, and the service industries are contributing to the bulk of permanent terminations and furloughs due to COVID-19, state officials told the U.S. Department of Labor.
The staggering job losses are pushing thousands into food lines around the state and nation as savings accounts dry up and consumers push credit card accounts to their limits. Service industry wage earners who live paycheck to paycheck have been among those hit hardest by government-mandated business closures, economists say.
“These lock-downs have disproportionately harmed those lower income wage earners, without question,” Snaith said. “If you’re a physician maybe you had to switch to telemedicine. Higher paying jobs are amenable to telework.”
According to a survey by Bankrate.com, U.S. adults are ditching cash and debit cards in favor of credit cards when buying food during the coronavirus pandemic. Credit card usage at grocery stores and restaurants were both up 70% in four months.
“Americans may not have the available funds to pay right now, so they’re financing these purchases with credit,” said Bankrate.com analyst Ted Rossman. “That also fits with another recent survey which found 28 million Americans added to their credit card debt over the past two months. If you’re struggling financially, contact your credit card issuer to see if they can cut you a break. Many are lowering interest rates, waiving fees and rearranging due dates upon request.”
The strength of any economic rebound remains uncertain given consumers’ caution about venturing back into public spaces.
A separate Bankrate survey indicates that most Americans are not comfortable heading back to local nonessential businesses right away so long as the coronavirus pandemic remains unresolved. A majority of those surveyed believe businesses are opening too soon.