Study: Floridians hit hard by economic downturn
Flat wages, a 28 percent rise in unemployment, and a dramatic slowing of job grow have combined to make it harder for Florida workers to get by, according to a university study.
The new study, released by the Research Institute on Social and Economic Policy at Florida International University, found job growth rose just 0.5 percent last year, down from a high of 4 percent in 2005. That’s compared to a national rate of 1.1 percent.
Now that the nation’s economy is slowing, the industries that elevated Florida above the rest of the country are dragging it down.
The construction industry felt the most pain, losing 54,000 jobs, according to the report’s co-author, Bruce Nissen, a professor of labor studies at FIU.
During the boom, Florida performed better than the country overall in job growth because of hyper-accelerated growth in construction and real estate. But, the gains spurred by the real estate boom have retreated, Nissen said.
“These numbers show that Floridians have already begun to feel the effects of the slowing economy, job loss and flat wages,” he said. “This, plus the simultaneous increases in the cost of living, makes the near future look very worrisome for working Floridians.”
Worker wages were flat last year and the wage gap for minorities is growing wider.
The high cost of living particularly impacts laborers. Workers here depend heavily on cars to travel to and from work faxless payday advances. In the last seven years, the Miami-Fort Lauderdale and Tampa Bay metropolitan areas had the second- and third-highest rates of inflation compared to other major metro areas nationwide.
One of the state’s most attractive financial features – its low tax rate – is a mirage that undercuts its growth, the report said. Floridians pay an average of 7.4 percent in state and local taxes – one of the lowest in the nation. But most of the taxes are not tax-deductible, so the tax burden on Florida residents is actually higher than it is for people outside the state.
The FIU study points to several steps needed to take to improve the lives of Floridians. It suggests Florida officials expand the state’s job sector beyond tourism and real estate, improve the education system, facilitate a more fluid relationship between educational institutions and industry, and reform the state’s tax system.
“The challenge has to be met head on, with an understanding that all the parts depend on each other,” the report stated. “An employer needs educated workers. Those workers need good teachers. Good teachers need the support of taxpayers, and taxpayers need to understand how their money is being invested.”