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Employment
The state's most important economic indicator is the health of the job market. The health of the job market is measured by the job growth rate and unemployment rate. Additional measures include the average wage and the number of businesses.
Why Is This Important?
The job growth rate is the most important economic indicator in the state. Higher levels of employment lead to high wages and consumption which generates greater output of goods and services. Greater output then leads to a higher standard of living for Florida residents. Higher job growth also leads to higher state tax revenues due to increased economic activity.
An increase in the number of businesses means more jobs are available and more Floridians are earning a living and paying taxes. An increase in the number of high wage jobs demonstrates a more diverse economy with room to grow.
How Is Florida Doing?
Job growth in Florida slowed in 2007 and started to decline over the year in July 2007. A national recession was declared by the National Bureau of Economic Research as beginning in December 2007. Job declines in Florida continued in 2008 - 2010 with the largest losses found in construction; trade, transportation, utilities (primarily retail trade), and professional and business services. The only industry experiencing over-the-year job gains in Florida is private education and health services.
On March 2, 2010, Governor Crist signed legislation delaying a rise in the Unemployment Compensation Tax. Had this delay not occurred, businesses on average would have seen their per employee rate rise from about $8 per employee to $100 per employee. The Florida Legislature and Governor Crist agreed this tax increase would harm recovery efforts in Florida, prompting the Legislature to unanimously pass this legislation on the first day of the 2010 Legislative Session.
The number of businesses in Florida rose slightly in 2008, while the average wage topped $40,000 for the first time in history.
Federal Stimulus Funds, Unemployment Compensation and Workforce Services
Under the American Reinvestment and Recovery Act (ARRA) of 2009, the State of Florida acted to minimize the effects of the worldwide recession that began late in 2007. The goal was to assist those losing their jobs, most through no fault of their own, with help during their period of unemployment and to further assist them with finding another job.
Scorecard
What Influences Employment?
Labor is a 'derived demand' based on consumers' desire for goods and services. Demand for workers is determined by the demand for the goods and services the workers produce. Job markets are influenced by population growth/demographics and global markets through international trade.
Population gains from people moving to Florida drive economic growth. The value of the dollar and competition from other countries influences the demand for goods and services, which then impacts the demand for labor.
What Is the State's Role?
Employment is an economic indicator which goes beyond agency performance. The U.S. and Florida economies are market-based and depend on the interplay of employers' demand for workers and workers' demand for jobs.
Florida's workforce system assists the operations of the labor market by providing information on jobs, wages, and educational requirements. Labor exchange services through One-Stop Career Centers seek to match employers with job seekers. Job training services seek to provide skills and education to meet the needs of the business community.
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