ORANGE COUNTY, Fla. — Florida’s unemployment rate has jumped from the mid-3% range one year ago to the mid-4% range as of February, sparking debate about the health of the economy amid increasing signs the state’s momentum is slowing down.
The January report showed Florida experienced one of the biggest year-over-year increases in unemployment to 4.9%. Most states’ rates rose a fraction of a percentage point. Florida’s increase was several times larger.
February’s preliminary report showed some relief, with the rate falling to 4.6%. BLS administrators cautioned that February’s numbers were subject to revision when they published their March statistics.
University of Florida economist Amanda Phalin said she wanted a few more months’ worth of data before she drew too many conclusions, but she said there was a disconnect between the way state leaders talked about the economy and what the numbers showed.
“We’re living in something called a K-shaped economy, where you have the top echelon of income earners are really driving the majority of economic growth,” she said. “The rest of us in the middle and on the bottom are struggling.”
Phalin said 80% of the spending now comes from the top 20% of earners, which would ultimately hurt the economy because it’s driven more by middle class spending.
She equated Florida’s situation to a Jenga tower, with a weakened middle where pieces had been removed.
“If you have the middle class and the lower middle class that don’t feel like they have the money to spend, and you have the consumer spending that’s being driven by the higher income people, eventually we’re going to hit a wall,” she explained.
Those fears have prompted some prominent politicians in the state to call on other leaders to refocus.
“Florida had one of the worst performing job markets over the past year,” Sen. Rick Scott (R-FL) posted on X. “Our state needs to stay focused on adding private sector jobs and driving down cost of living — just like President Trump is trying to do across the country.”
On the streets of Orlando Monday, the “wall” Phalin talked about could be felt by those who were actively looking for a job.
Angel Caraballo explained he had been out of work since December. He was an automotive painter by trade and said he had no issues finding employment two years ago.
“They said it’s the wonderful state it is but not, job wise,” he said.
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