Florida's jobless rate creeps toward 12 percent

By Jim Stratton, Orlando Sentinel

Florida's unemployment rate climbed to 11.8 percent in December, the highest level in almost 35 years and up three-tenths of a point from a month earlier.

The state's jobless rate is up 4.2 percentage points from last year at this time and almost 2 points higher than the national average of 10 percent.

It represents about 1 million unemployed people out of a total labor force of almost 9.2 million, but the figure — as grim as it is — understates the extent of the problem.It does not include individuals who have stopped looking for a job, those who have been forced into part-time work and those who have accepted jobs far below their skill levels.

When those people are added, the percentage of workers who are unemployed or underemployed exceeds 19.5 percent.Since April 2007, when the state labor market began shrinking, Florida has shed more than 720,000 jobs, losses that cut across virtually all industries."We're still in the throes of equal-opportunity unemployment," said University of Central Florida economist Sean Snaith. "Plumbers and professors, laborers and lawyers have lost their jobs in this recession."The construction industry has taken the hardest hit, and Friday's figures show that it continues to struggle.

In December, that sector was down almost 60,000 jobs compared with a year ago. Transportation, trade and utilities lost almost 51,000 jobs during the same period.In Central Florida, every county now reports double-digit jobless rates.

Seminole is at 10.9 percent; Orange is at 11.8 percent; Brevard stands at 12.1 percent; Volusia at 12.5 percent; and Lake comes in at 12.7 percent.Osceola County reported the highest rate in the region at 13.3 percent. Flagler County has the state's worst unemployment at 16.9 percent.Metro Orlando, which consists of Orange, Seminole, Lake and Osceola counties, was at 11.9 percent.None of the numbers is surprising.

With an economy dependent on construction and tourism, Florida suffers badly when the nation as a whole slips into a recession.Economists say the state will recover more slowly than many parts of the country, and the jobless rate is projected to hit 12 percent before falling slightly in the second half of the year.

But even that estimate may prove optimistic. In the past year, official state projections have often been revised up.Amy Baker, coordinator of the state's Office of Economic & Demographic Research, said Friday that "there are still a lot of signals in place" that unemployment has not yet peaked. If nothing else, said Baker, the number will rise because, at some point, discouraged workers who have stopped looking for a job will re-enter the market when they think conditions have improved."When things start turning around, you'll see a bump when they flood back in," Baker said.

You can read the state's full jobs report HERE.The state's soaring jobless rate has become a potent political issue heading into Florida's 2010 elections.Democrats have used it to hammer Gov. Charlie Crist and the Republican-controlled Legislature, saying they've done little to boost the state's economy. Republicans have battered President Barack Obama and Democrats running for Congress, saying unemployment continues to rise despite federal stimulus efforts.

Friday, with the new jobless numbers just a few hours old, the Florida Democratic Party fired off a series of e-mails blasting Crist and former state House Speaker Marco Rubio — both GOP candidates for the U.S. Senate — and Attorney General Bill McCollum, the likely Republican nominee for governor.

Crist and McCollum issued their own statements stressing job creation as did U.S. Rep. Kendrick Meek, the Democrats' likely nominee for Senate, and U.S. Rep. Vern Buchanan, a Republican from Sarasota running for re-election.

Thursday, Crist and legislative leaders promised to delay a huge increase in the state's unemployment-compensation tax that's supposed to take effect soon.Crist said raising the tax — which finances the unemployment trust fund — "stands in direct opposition to our focus on strengthening businesses and creating jobs." Florida House Speaker Larry Cretul and Senate President Jeff Atwater pledged to pass legislation early in the upcoming session.

Florida CFO Alex Sink, the likely Democratic candidate for governor, threw her support behind the proposal Friday. Sink said increasing the trust-fund tax now "would strangle our businesses, particularly our small businesses, and stifle our chances for economic recovery."Florida's fund for jobless benefits went broke in August, forcing the state to borrow $1.1 billion from the federal government to continue paying benefits.

Aaron Deslatte of the Orlando Sentinel Tallahassee Bureau contributed to this report. Jim Stratton can be reached at jstratton@orlandosentinel.com or 407-420-5379.

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