Florida Unemployment Rate Drops to 2.6% as State’s Economy Remains Strong Amidst National Economic Headwinds

Florida’s unemployment rate saw a slight dip in January, according to a recent report released by the Florida Department of Economic Opportunity. The jobless rate fell to 2.6% from a revised rate of 2.7% in December, and from 3.5% in January 2022. This translates to around 286,000 Floridians who qualified as out of work from a workforce of 10.855 million.

The workforce grew by 15,000 from December and by 259,000 from January 2022. Most of the recent job gains in Florida and across the nation continue to center on lower-paying retail and hospitality jobs.

The January unemployment rate in the Miami-Fort Lauderdale-West Palm Beach statistical area was 2.3%, the lowest in the state, while the highest rates were found in The Villages, Sebring, and Homosassa Springs regions, each at 3.9%.

While the overall number of positions advertised has decreased, Jimmy Heckman, the Department’s Chief of Workforce Statistics and Economic Research, stated that the market for finding jobs remains “very strong.” The state has approximately 620,000 recorded job openings, which is a 7.9% reduction from a year ago, but Heckman said current postings are “elevated” over 2019, the last full year before the COVID-19 pandemic disrupted the economy.

From January 2022 to January 2023, leisure and hospitality jobs in Florida led other major sectors, increasing by 101,900 positions, with 16,100 added in the January report. Next highest year-over-year were in professional and business services, with 80,400 jobs added, and education and health services, up 79,400 jobs.

Construction jobs were up 23,600 from a year earlier but shed 2,400 positions in January amid signs of a slowing housing market.

Overall, the data reflects the strength and success of Florida’s economy, according to Governor Ron DeSantis, who added that the state will continue to prioritize policies that support Florida families as they continue to face persistent inflation and national economic headwinds.