As Housing Market Cools, Southwest Florida Economic Outlook Dimming, But Not Dire

When it comes to hiring, employers in Naples-Fort Myers are slamming on the brakes. Job seekers scanning the classifieds will see fewer openings than this time last year, the Naples Daily News reports, and there will be a larger pool of unemployed, skilled workers in the area.

Due in large part to the slowing South Florida housing market, just 32 percent of employers in Fort Myers and Naples plan to add employees from October-December, down from 60 percent a year ago. The remaining 68 percent of companies surveyed will maintain current staff levels.

The good news, at least, is that none of the 26 companies surveyed plans to lay off employees at the moment.

“This report is very accurate and reflective of what’s going on here. It’s not surprising at all that there are fewer companies looking to increase than last year. Last year’s growth really was irrational exuberance,” said Mike Reagen, the current president of the Greater Naples Chamber of Commerce.

On a national level, the Federal Reserve expects the national economy to remain steady. Meanwhile, the Florida real estate market has slowed considerably, with large dropoffs in residential sales and homes.

While Florida home loan rates have fallen now for six straight weeks, the demand for homes has deflated rapidly after five years of record home price appreciation. Still, the Southwest Florida economy’s forecast isn’t dire across the board.

“We still have a lot of building and construction going on, it’s just not at the feverish pitch that we’ve seen in the last couple of years,” said Brenda Talbert, executive vice president of the Collier Building Industry Association.

While the climate is certainly changing, the effects of the rising rates of Florida mortgage loans and the expected slowdown in hiring hasn’t been felt at the Southwest Florida Workforce Development Board yet, said Joe Paterno, executive director.

In Florida, Lakeland-area businesses (in Polk County) planned the most growth, with a net of 57 percent expected to hire new employees. Across the Sunshine State, 27 percent of companies planned to increase staff, while the U.S. average is 20 percent.

For employers, the hiring projections mean there may be a larger, more skilled pool of potential employees searching for work.

“Because the job market was so tight before I think there were people being hired who may not have had the highest capabilities,” Talbert said. “Now as an employer … you’re going to get a higher caliber of employee because the pool of unemployed people is bigger and stronger.”