Jacksonville’s jobless rate edged higher in December despite an increase in employment, as more people entered the labor force looking for work.
The unemployment rate in the Jacksonville metropolitan area (Duval, Baker, Clay, Nassau and St. Johns counties) rose from 2.9 percent in November to 3.1 percent in December, the Florida Department of Economic Opportunity reported Friday.
The area’s jobless rate had been below 3 percent for three consecutive months before December. While the number of residents who were employed rose by about 1,700 in December, the size of the labor force rose by about 3,500 so the unemployment rate increased.
People are only counted as in the labor force if they are working or actively looking for work.
The state agency does not adjust its data for seasonal factors, including the normal Christmas season hiring that impacts the unemployment rate. The University of North Florida Local Economic Indicators Project said when it is seasonally adjusted, Jacksonville's unemployment rate had a bigger jump from 2.91 percent in November to 3.42 percent in December.
Despite the December increase, UNF economist Albert Loh said the trend throughout 2018 was declining unemployment.
“It was an excellent year for the labor market and the outlook continued to be positive,” he said.
Duval County’s unemployment rate rose from 3 percent in November to 3.2 percent in December, without seasonal adjustment. However, Loh said when it is adjusted, the county's jobless rate actually declined by 0.13 percentage points to 3.13 percent.
St. Johns County’s unemployment rate rose by 0.2 points to 2.7 percent, without adjustment, but that was still the second-lowest rate in the state behind Monroe County’s 2.6 percent rate.
Florida’s statewide unemployment rate was unchanged at a seasonally adjusted 3.3 percent in December, the Florida Department of Economic Opportunity said.
The agency said nonfarm businesses in the Jacksonville metro area had a net gain of 12,500 jobs from December 2017 through December 2018, a 1.8 percent growth rate.
The strongest growth, on a percentage basis, was in the construction industry which added 2,900 jobs, or 6.5 percent, in the 12-month period.
The education and health services sector added 3,200 jobs, a 3 percent gain, and professional and business services added 3,100 jobs, or 2.9 percent.
The biggest job loss came in the trade, transportation and utilities sector, which declined by 1,600, or 1.1 percent.
With the holidays over, Loh said he will be closely watching the report on January’s labor market, which will not be released by the state until March.
“January data will be revealing relative to whether many new workers are permanent or simply reflect last-minute Christmas hiring,” Loh said.
Jacksonville’s job growth matched the national growth rate of 1.8 percent but lagged behind Florida’s statewide growth rate of 2.7.
The Department of Economic Opportunity said every metropolitan area in the state added jobs in 2018 except Panama City, which lost 1,500 jobs in the aftermath of Hurricane Michael.
Florida had a net gain of 231,200 jobs from December 2017 through December 2018, the agency said.
A report this week by the Florida Chamber Foundation predicted the state will create 150,000 jobs this year. However, the foundation's chief economist warned global conditions could impact growth.
“When job creators see uncertainty in financial or international markets, they are less likely to invest,” Jerry Parrish said in a news release.
The foundation urged business leaders at an economic outlook and jobs summit to focus on diversifying Florida's economy to mitigate economic threats.