Central Florida Labor Market Still Steady
Florida construction industry employment fell in March for the first time since 2002 as the Central Florida housing market faltered, but demand for workers remained strong statewide and in the region.
The Florida Agency for Workforce Innovation reported that the unemployment rate in the Orlando area held steady from February to March at 3.1 percent, and the state unemployment rate also was unchanged at 3.2 percent.
Metro Orlando added 30,800 jobs, or 2.9 percent, since March 2006, the biggest gain for any metro area in Florida. The Miami housing market followed with a 1.1 percent increase.
The construction industry, which is suffering from a downturn in Florida mortgage demand and subsequent real estate sales, lost 3,000 jobs across the state in the past year. But overall non-agricultural employment rose 1.5 percent from March 2006 to 8.1 million jobs.
University of Central Florida economist Sean Snaith said the drop in construction employment was expected, but that a small decline bodes well for the industry.
“Given what is happening in the Florida housing market, it would look like we will be able to weather this phase without too much loss,” Snaith said.
Snaith said he expects unemployment to increase slightly between now and the end of 2007, following an expected national trend. The year-over-year unemployment rate rose slightly in March, from 2.9 percent to 3.1 percent in Metro Orlando and from 3.1 percent to 3.2 percent statewide.
“I would expect to see some upward drift in unemployment, but probably less than a full percent,” Snaith said. “We are effectively at full employment-plus right now.”
Kimberly Cornett, spokeswoman for Workforce Central Florida, a publicly funded employment agency, said that labor remains in tight supply, with wages increasing as a result.
“Wages are becoming somewhat more competitive because it is a job-seeker’s market,” Cornett said.
Cornett said soaring housing costs during the past five years probably is limiting the available work force, as fewer residents can afford Florida mortgages.
“Companies are saying that a lack of affordable housing is affecting their ability to attract quality workers,” she said. “Fortunately, this is a need that is being addressed as a serious need in our community.”
SOURCE: Orlando Sentinel
