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Florida jobless rate rises to 11.9 percent in September
[October 23, 2010]

Florida jobless rate rises to 11.9 percent in September


Oct 23, 2010 (The Orlando Sentinel - McClatchy-Tribune Information Services via COMTEX) -- Florida's still-gimpy economy lurched forward in September, posting a net year-over-year gain of jobs for the third straight month, although the unemployment rate still edged up slightly to 11.9 percent, the state reported Friday.



The statewide jobless rate rose one-tenth of a percentage point from August and seven-tenths of a percent from September 2009, according to the Agency for Workforce Innovation, which compiles the monthly report.

Metro Orlando's September unemployment rate dropped a bit to 11.8 percent, down two-tenths of a point from the August rate, but up three-tenths from a year ago, the agency said.


Job creation showed some signs of life as Florida generated a year-over-year increase of 27,200 jobs in September, while Orlando had a net gain of 100 jobs -- the second consecutive month it posted a gain compared with 2009.

At the same time, figures show the state lost 11,000 jobs from August to September this year, after losing 16,000 jobs from July to August.

"This recession was so deep and so many people were cut during the downturn, I think companies really didn't hire that many people when business picked up this summer," said Mark Vitner, a senior economist for Wells Fargo in Charlotte, N.C.

Experts said the upshot of the latest conflicting jobless data is this: Florida's economic recovery remains weak, though there are signs the patient is improving.

"We're not seeing the massive payroll losses and tremendous jumps in unemployment rates that we were seeing," said Sean Snaith, an economist at University of Central Florida. "We are out of recession, but the nature of this recovery is going to be extremely fragile." Officials said the uptick in the jobless rate was due, in part, to more unemployed workers resuming their job search after giving up in discouragement during the recession. When people return to the labor force, the state begins to include them again in the jobless-rate calculation.

Though Florida's job engine overall is not yet hitting on all cylinders, there is evidence of healthy hiring in some sectors, according to the latest figures.

Private education and health services led the way with a net 39,200 jobs in September, a year-over-year increase of 3.7 percent. Other gainers included professional and business services (15,400 jobs, or 1.5 percent); transportation (13,600, 0.9 percent) leisure and hospitality (2,800, 0.3 percent).

On the down side, financial services continued to take a hit, losing 11,500 jobs in September, a year-over-year decrease of 2.4 percent. Construction also slid back (10,700 jobs lost, down 2.9 percent), as did manufacturing (9,600 jobs, 3.1 percent).

Some industry sectors are divided, with some companies hiring, while others are contracting amid the continuing economic sluggishness. Such is the case involving two Orlando companies in the digital-media business -- n-Space Inc. and Engineering & Computer Simulations Inc., known as ECS.

This month, video-game developer n-Space laid off most of its staff, cutting 70 jobs and nearly shuttering the entire business. It cited the ongoing slump in consumer spending on traditional video games and the emergence of less-expensive iPhone apps in the video-game market.

Meanwhile, ECS is adding a half-dozen high-tech jobs to handle the increase in demand for its computer-based training games for the military and other government customers. With many tech companies cutting back, ECS has been flooded with applications, said Waymon Armstrong, its chief executive officer.

"We had at least a dozen applicants for each position we are filling; and we didn't even advertise that much, just basically through word of mouth," he said. "We are seeing a lot of tremendously talented people out there, something that is a real benefit to us." Richard Burnett can be reached at [email protected] or 407-420-5256.

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