Florida’s Unemployment Rate Stays Steady at 3.3% Amid Shifts in Labor Force

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Florida’s job market showed resilience in June, as the unemployment rate held steady at 3.3% for the third consecutive month. This stability comes as the state grapples with the impact of retiring baby boomers and recent job losses in the hospitality sector.

According to a report released by the Florida Department of Commerce, the labor force, which comprises 11.07 million people, experienced a decline of 27,000 participants over the past three months. Specifically, there was a reduction of 13,000 individuals from May to June, leaving approximately 361,000 people unemployed in the state.

Jimmy Heckman, the department’s chief of workforce statistics and economic research, attributed the drop in the labor force primarily to retirements. However, he noted that workforce participation remains robust among individuals aged 25 to 54. “We’ve looked at discouraged workers who feel there are no opportunities available to them, and those numbers have remained very low over the past year,” he explained during a conference call with reporters.

The leisure and hospitality sector saw the largest employment decline in June, losing 14,700 jobs, primarily in hotels and food services. Interestingly, Orlando, which usually sees a boost in hospitality jobs during this time, reported a decrease instead. Meanwhile, coastal areas of the Panhandle experienced slower-than-usual hiring.

Despite the job losses in June, Heckman pointed out that there are still more jobs in the hospitality sector compared to a year ago, with an increase of 16,700 positions from June 2023. The overall labor force in Florida grew by 66,000 over the past year.

While the national unemployment rate in June stood at 4.1%, Florida’s steady rate was consistent with 41 other states where unemployment rates remained unchanged from May. In contrast, eight states experienced increases, while Connecticut saw a decrease in its unemployment rate.

In terms of industry performance, Florida's construction sector added 3,400 jobs from May to June, and the education and health services category grew by 5,500 positions. The trade, transportation, and utilities sector also saw an increase of 4,300 jobs.

Regionally, the Miami-Fort Lauderdale-West Palm Beach metropolitan area recorded the lowest unemployment rate at 3.1%, though this was an uptick from 2.6% in May. Other areas such as Crestview-Fort Walton-Beach Destin and Naples-Immokalee-Marco Island also reported rates of 3.2% and 3.3%, respectively. Conversely, the Homosassa Springs area had the highest rate at 5.2%, an increase from 4.5% in the previous month.

Overall, Florida’s job market continues to adapt to demographic shifts and industry changes, maintaining a steady unemployment rate amidst various economic challenges.