Will High Unemployment Cast Shadow on the Sunshine State?
Although the Great Recession has caused high unemployment throughout the U.S., the impact has been particularly severe in Florida. The current 10.7% unemployment rate, is far higher than the current national average of about 9%. This means that at least one million Floridians have been chronically unemployed since the current recession began at the end of 2007.
What is particularly worrisome, is the specter of permanent high unemployment in Florida, for the foreseeable future. Some economist project that four years from now, the unemployment rate will be 8%, well above the national average. According to Moody's Analytics, Florida may have a permanent unemployment rate of 6%, which would rank it 42 out of 50 States, falling behind Georgia, Alabama, Tennessee and South Carolina.
If the trend continues, Florida risks losing its most skilled job sector. There are already fears of an exodus of scientists and engineers from the Space Coast, with the closing of the Space Shuttle programs. Fewer jobs and opportunities lead to increased costs of unemployment taxes and workers' compensation premiums.
