State jobless rate down, but doubts remain
At 10.4%, down from 13.7% in May as more businesses reopen
Reopened businesses helped lower Florida’s unemployment rate to 10.4% in June as the state’s workforce reclaimed 296,000 jobs, the Department of Economic Opportunity reported Friday.
But the strength of the state and local job markets remained in doubt as employers are still skeptical about a recovery dogged by the COVID-19 crisis. And companies are extending layoffs and furloughs of employees who could stay on the sidelines for as long as another six months.
The latest include the Hilton Fort Lauderdale Marina, which is extending the furloughs of 167 workers, and Brookfield Hospitality Properties in Plantation, where 146 workers will be laid off Sept. 16. The company supports the Atlantis Paradise Island Resort in the Bahamas, which is temporarily closed.
“Unemployment rates across the state are certainly impacted by how businesses are responding to the pandemic,” Adrienne Johnston, chief of the agency’s workforce statistics bureau, told reporters during an online news conference. But she said it’s “too early to tell what the long-term impact will be.”
Jobless rates have not reached the Great Depression levels of 20% that economists once feared. But they are squarely in the neighborhood of the 2007-2009 recession caused by the housing collapse of more than a decade ago.
The state’s unemployment rate for June is just below the 10.7% rate posted in June 2009.
Florida recorded 13.7% unemployment in May, adjusted downward from the 14.5% announced initially because of seasonal factors.
A total of 1,021,000 Floridians were without work in June out of a labor force of 9,770,000, And new unemployment claims spiked to more than 129,000 for the week ended July 11.
In addition, Florida’s unemployment rate did not factor in the June 26 suspension of alcohol consumption at bars, which resulted in renewed closures and layoffs. That was because the week used to collect data on people’s unemployment status started June 12.
Broward and Palm Beach counties saw their jobless rates decline to 11.8% and 10.4% respectively in June. Broward added 44,000 jobs between May and June while Palm Beach County added nearly 22,000.
Miami-Dade’s County’s jobless rate eased to 11.5% with more than 49,000 jobs added.
All three counties had low single-digit jobless rates in 2019.
More big losses in hospitality
Florida lost 541,800 jobs year over the past year, a decrease of 6.1% and a clear reflection of the impact of COVID-19.
Once again, the industry losing the most jobs over the year was leisure and hospitality, which saw 268,400 jobs eliminated by
hotels and restaurants that have remained closed or reopened at lower capacities dictated by local governments.
Other industries losing jobs over the year:
■ Professional and business services, 87,500.
■ Trade, transportation, and utilities, 64,700.
■ Education and health services, 41,500.
■ Professional and other services, 34,700.
■ Government, 18,100.
■ Manufacturing,13,100.
■ Information, 10,500.
■ Financial activities, 7,400.
The construction industry, which has seen developers continue to keep most of their commercial and residential building projects active despite the COVID crisis, remained the only consistent bright spot with a gain of 4,600 jobs.
Consumer sentiment improves, modestly
Despite the lofty jobless rate, the University of Florida’s Bureau of Economic and Business Research found a modest increase consumer confidence among Floridians surveyed in June.
The increase came from responses to questions about whether now is a good time to buy a bigticket item, and from the consumers’ view about short- and long-term economic conditions nationally.
“When consumers feel more optimistic about their economic prospects, they are more comfortable increasing their spending, particularly on big-ticket items,” Hector H. Sandoval, the bureau’s director, said in a July 9 statement. It is, he said, a “positive sign for the state’s economy.”
Still, he noted that confidence remained far from levels observed in February, before the pandemic disrupted the economy. The difference between February and June is almost 20 points.
Sandoval cautioned that given the still lofty unemployment rates and continued rise in as weekly claims for unemployment benefits, “Florida’s economic recovery looks poised to be a prolonged effort.”