Jobless claims drop in Florida

Layoffs still plague hotels, retailers and restaurants

For the second straight week, Florida registered another sharp decrease in new unemployment claims, which declined to 86,298 as the economy regained steam despite spikes in coronavirus infections and layoffs in hospitality and retail.

Florida’s claims dropped more than any other state’s: by 25,863 for the week ended June 13 from 112,161 the week before. Nationally, more than 1.5 million claims were filed, a drop of 58,000, the U.S. Department of Labor reported Thursday.

The number of weekly state claims was the lowest since a surge of unemployment started to grip the state’s economy in mid-March. Since then, well over 1 million jobs have been lost in the state as businesses closed or curbed operations to help combat the pandemic.

Florida’s unemployment rate for April was 12.9%. The state Department of Economic Opportunity will release the May figure Friday. The national rate for May was 13.3%, although the federal labor department said more than 2.5 million jobs had been recovered during the month.

Despite the reports of diminishing claims, fresh layoffs and extended furloughs continue to plague South Florida’s hotel, retailing and restaurant in

dustries.

The Hyatt Regency in downtown Miami notified the state it is extending the layoffs of 209 workers for a period that my exceed six months, according to a filing with the DEO, Citing poor business levels caused by the pandemic lockdowns, management said “we must prepare for longer term employment losses.” The Hyatt called the action a “partial closure” and noted that not all employees at the hotel are affected by the layoffs, which start Thursday,

The W South Beach on Collins Avenue in Miami Beach is furloughing 385 people effective Friday, according to a notice to the state.

The Village Tavern restaurant chain of North Carolina shuttered its location at the Renaissance Common in Boynton Beach at the cost of 59 jobs. The closure put 17 cooks and 25 servers out of work, among others.

In Sunrise, a Century 21 men’s and women’s department store at Sawgrass Mills laid off 66 people on June 9, citing reduced demand that management attributed to social distancing requirements imposed by the city, according to its state filing, Those restrictions, the company said, caused a decrease in consumer foot traffic.

As of Tuesday, Florida’s Department of Economic Opportunity had delivered more more than $6.3 billion in state and federal unemployment benefits to nearly 1.4 million people.

Gov. Ron DeSantis again extended a waiver exempting workers from reporting weekly job search efforts to the agency. The new expiration date is July 4. He also extended the waiver of the so-called “waiting week” — under which applicants do not get paid for their first week of inactivity — through Aug. 1.

Despite the persistent layoffs, analysts point to several key indicators that show a foundation for an upside to the state and national economies:

■ The number of longterm jobless workers — meaning those people who have been out of work for more than six months — has remained steady at 1.2 million without any increase. That is largely a function of employers recalling employees as the economy has restarted.

■ Retail sales jumped 17% in May over 2019, according to the U.S. Census Bureau, more than double the rise expected by economists;

■ Homebuilders are again bullish about their prospects. The National Association of Home Builders/ Wells Fargo Housing Market Index showed a surprising turnaround this week in homebuyer demand. Miami-based Lennar Corp. and CC Homes of South Florida this week reported increases in contracts signed and buyers expressing serious interest in acquiring new homes.

“We’re shocked at how the housing market has actually accelerated,” said Ken Johnson, an economist at Florida Atlantic University. Mortgage applications are up, as are closings and homes under sales contracts. The “primary drivers.” he said, are historically low interest rates — now at 3.18% for a 30-year fixed mortgage — and lower monthly ownership costs.