The regional unemployment rate increased at the beginning of the year.
South Florida’s jobless rate was 3% in January, according to data released Monday by the state Commerce Department. That was up from 2.7% at the end of last year when not adjusted for seasonal factors.
Despite the increase, the region still has the lowest unemployment rate in the state.
Statewide the unemployment rate had a slight uptick to 3.5%, while Gov. Ron DeSantis touted growth in the labor force. The state lost jobs in construction but gained positions in industries that have been growing — healthcare and hospitality.
While the unemployment was up a little in January, South Florida’s average weekly earnings were up 3%. However, higher inflation ate up about half the gains in paychecks. The regional consumer inflation rate jumped 1.4% between December and February, according to data out last week.
READ MORE: Regional inflation steady as consumers sour on economic outlook
The state Department of Commerce on Monday released a report that said the January rate was up from 3.4% in December. It also was up from 3.2% in January 2024.
The number of people qualified as unemployed increased from 385,000 in December to 390,000 in January. It was up from 353,000 in January 2024.
Meanwhile, the labor force of 11.188 million in January increased by 18,000 from December and 66,000 from January 2024.
DeSantis’ office issued a release that said the expanded workforce reinforced “the state’s economic strength.” It said the “state’s labor force grew or remained stable in 10 of the past 12 months, underscoring Florida’s sustained economic momentum.”
“Florida continues to prove that leadership and conservative fiscal policies drive success,” DeSantis said in a prepared statement. “We will keep the momentum going by insisting on reducing government spending, continuing to eliminate bureaucracy, and finding more tax reductions for Floridians.”
The national unemployment rate in February was 4.1%, up from 4% in January. Florida will release a February rate next week.
The Florida unemployment report Monday came three days after a panel of economists known as the Revenue Estimating Conference released updated projections of state general revenue. While the projections were higher than had been anticipated in an August forecast, the panel cautioned about “weaker” state and national economic variables and said the “forecasting environment is considerably less stable over the short run than it was in the summer. Further economic uncertainty exists from this point forward.”
Monday’s report showed employment increases in categories such as education and health services and leisure and hospitality. Construction saw a decrease of 5,100 positions.
Across Florida, the Miami-Fort Lauderdale-West Palm Beach metropolitan statistical area had the lowest unemployment rate in January at 3.0%, The Orlando-Kissimmee-Sanford and Crestview-Fort Walton Beach-Destin regions were next-lowest at 3.6%, while the Tallahassee area was at 3.7%
The statewide rate is seasonally adjusted, while the metro rates are not adjusted.
The News Service of Florida contributed to this report.
