Joblessness hits record statewide, drops slightly in Palm Beach

By David Sedore, Palm Beach Business.com

DELRAY BEACH — Through four decades and four recessions, it’s never been this bad. And It’s likely going to get worse before it gets better.

Florida’s Agency for Workforce Innovation reported Friday that the statewide unemployment rate hit 12.2 percent in February, the worst rate since 1970, when the state began keeping records. That represents 1.126 million people out of work.

“Unemployment is now higher than what was recorded in all previous recessions since 1970,” said agency Chief Economist Rebecca Rust.

If discouraged workers and minimally employed workers are counted, the rate jumps over 20 percent. Discouraged workers, those who want jobs but have quit looking because they can’t find anything, aren’t counted among the unemployed. And anyone working as little as an hour a week are counted among the employed.

The state’s economic estimating conference, a gathering of economists from both houses of the Legislature and the governor’s office is projecting that unemployment will hit 12.3 percent later this year. The jobs market should start showing signs of improvement during the second quarter, but it will be slow improvement. The statewide unemployment rate won’t drop to 6 percent until 2019.

The reason for the slow turnaround: in a word, money. Or more precisely, the lack of it. Consumers, fearful of losing their jobs, aren’t spending. Both consumers and small businesses, which drive most of the hiring in the state, can’t get credit.

“In past recessions, it’s generally been consumers who pull the economy out with their spending,” Rust said. “We’re not seeing that this time.”

Since March 2007, Florida has lost nearly 900,000 jobs. A year ago in March, the rate of job loss peaked at 6.9 percent; in February, it dropped to 2.9 percent, still bad but a sign the market is stabilizing.

The good news from February’s report: the rate for Palm Beach County dropped to 12.4 percent from January’s 12.5 percent, although that’s likely due to seasonal hiring as opposed to any strengthening of the local jobs market.

In Broward County, the jobless rate fell to 10.9 percent in February from 10.9 percent a month earlier but up from February 2009’s 8.0 percent.

The statewide rate is adjusted for seasonal factors that affect employment, while county numbers are not.

More from the report later in the day.