Florida’s Rising Unemployment Rate
In the grand scheme of things, under the guidance of its governor, DeSantis, Florida continues to exhibit an unemployment rate generally lower than the nation’s average.
Source: Freepik
However, unemployment has been steadily climbing in certain parts of the last week, and it appears to have peaked, resulting in the Sunshine State experiencing the most applications for jobless benefits.
Over 1,000 Florida Residents Applied for Unemployment Benefits
In the week ending May 11, 1,158 Florida residents applied for unemployment benefits, the highest number in any state in the US.
Source: Freepik
The data sourced from the U.S. Labor Department showcases that Florida’s unemployment rate is continuously rising while the country, on average, saw an overall drop of around 13,000 unemployment applications.
Florida Tops the List
During the same week, New York experienced a decrease of around 9,000 people applying for unemployment benefits.
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Compared to the people applying for unemployment in Florida, Pennsylvania, which experienced 893 new claims, was second on the list. Third on the list was Minnesota, with 690, showcasing that the Sunshine State tops the list by a significant amount.
Placing Florida's Recent Surge of Unemployment Into Context
While Florida’s recent surge in unemployment benefits applicants has worried state officials, the state has recovered well from the economic crisis caused by the pandemic.
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During the height of the pandemic, unemployment claims in the state surged to a staggering 506,670 on April 18, 2020. However, according to information sourced from the Federal Reserve Economic Data, they have since dropped to around 7,000.
Florida's Unemployment Rate Remains Below Average
However, Florida’s unemployment rate remains well below the national average. As of March 2024, the state was experiencing an unemployment rate of around 3.2%.
Source: Freepik
When compared to the national figure, which sits at 3.8%, Florida gives the impression that its unemployment rate is still well under control, and state officials have no reason to worry in the meantime
Another Reason Behind the Surge
One reason behind the surge in unemployment claims could be that Florida is experiencing a significant number of people quitting their jobs, according to Newsweek.
Source: Freepik
According to February figures, the quit rate in the Sunshine State peaked at around 3.1%, which is significantly higher than the national average of 2.2%.
Strong Labor Market in Florida
Despite the surge of unemployment claims in mid-May, Florida continues to experience a strong labor market.
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“Florida’s statewide unemployment rate has been lower than the national rate for 40 consecutive months,” the state’s commerce department said in March. They specifically referred to the 0.8% gap between the states’ unemployment and that of the national average.
Job Openings Showcase Strong Labor Market
State officials also pointed out a significant surge in the number of available job listings posted online during February, further showcasing Florida’s strong labor market.
Source: Freepik
“Data in the month of February continues to indicate there are many job opportunities available for every Floridian who wants to work, with more than 443,000 jobs posted online,” the commerce department added.
Further Data Coming at the End of May
In the coming weeks, it will become clearer whether the initial rise in unemployment benefits applications will negatively affect Florida’s overall unemployment percentage.
Source: Freepik
Future data set to be released at the end of the month will allow experts to project how the labor market will look as the state prepares to move into summer.
Nothing to Worry About
Doug Tobin, a spokesperson for CareerSource Tampa Bay, suggests that state officials have nothing to worry about as there are a plethora of jobs available in the state, especially in the Tampa Bay area.
Source: Freepik
Really anyone who wants a job in the Tampa Bay Area can pretty much find a job,” he said.
People Returning to the Workforce in Florida
“We are seeing the higher numbers of 150, 190 people coming in here every day,” said Tobin. “Now, some of that may be what we’re seeing is some people who during COVID left the workforce are starting to come back into the workforce.”
Source: Freepik
“We have a special program right now that if you are unemployed or if you were recently unemployed or if you’ve exhausted some of your unemployment, we do have programs that can help those people up to $5,000 worth of money available for job retraining,” he said.