Low unemployment brings mixed reactions


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  • | 12:00 p.m. March 16, 2006
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by Liz Daube

Staff Writer

Jacksonville’s unemployment rate dropped to 3 percent in December, its lowest point in five years. Not everyone views the Bureau of Labor Statistics results as good news, though: workers may have more jobs, but businesses looking to grow may find the numbers discouraging.

“They (businesses) are saying, ‘Are we going to be able to expand here?’” said Candace Moody, vice president of communications for WorkSource, a publicly funded agency that helps workers in the First Coast area find jobs. “It’s a challenge to find available workers that aren’t already employed.”

Paul Mason, an economics professor at the University of North Florida, said there is a shortage of workers in Jacksonville — but not in every industry. He said areas like service and construction were more likely to have trouble finding employees. Basically, a corporation looking for a trained computer technician probably wouldn’t have a problem, but a restaurant looking for a dishwasher might.

“While it (the low jobless rate) is good for employees and wage rates, it’s bad for employers,” said Mason.

Yet Jacksonville attracts a lot of high-paying jobs that need skilled workers, according to Hassan Pordeli, an economics professor at Jacksonville University. He anticipated a shortage in highly specialized workers, such as biotechnicians, instead.

The low jobless rate isn’t just a Jacksonville trend, either. Florida’s overall unemployment hit 3.3 percent in December, the lowest since 1976.

Nationally, Gainesville, Fla., had the lowest unemployment rate at 2.2 percent. The Gulfport and Biloxi, Miss., area had the highest jobless rate with 21.3 percent.

“It’s not a competitive disadvantage in Florida, but it is a competitive disadvantage with other markets,” said Ron Barton, executive director of the Jacksonville Economic Development Commission. He added that relocating businesses consider the jobless rate as a top three factor when choosing whether to move to Jacksonville.

Pordeli agreed with Barton, saying that Jacksonville’s other positive factors — such as a diverse economy and large amount of land available for development – will prove more important than the low jobless rate.

“Jacksonville has so many other good things going for it,” said Pordeli. “This (jobless rate) indicator by itself will not be a deterrent.”

Mason looked at the situation differently. He said the low unemployment rate may impact local businesses most.

“I don’t know that a business coming in would be looking at short-term unemployment rates,” said Mason. Jacksonville’s jobless rate dropped 1.4 percent from December 2004 to December 2005. “It (the jobless rate) will have impact on the companies that are here. They’re going to have to recruit workers from other industries.”

Organizations like WorkSource are trying to get both incoming and existing businesses to view Jacksonville’s work force differently. Moody said recruitment from other industries is a possibility because many people aren’t happy with their current jobs. A lot of workers lost comfortable, mid-level careers in the last few years, she said, and they haven’t been able to attain similar positions.

“Even though everyone can work, not everyone can find the job they had,” said Moody. “Economically it’s smart, but it’s very painful.”

Only about 60 percent of Jacksonville’s workers are actually choosing to work, Moody added. Those potential employees, such as stay-at-home moms and retirees, could potentially be lured back into working. Recruiters can entice those workers by providing flexible hours and higher pay.

“You just have to be creative,” said Moody, adding that businesses may need to change the way they look for new employees. Instead of trying to find perfect candidates to fit specific job roles, employers may need to “hire on attitude and train on skills.”

“Employers are going to need to be more flexible,” she said. “We’ve let a lot of talent go away. It used to be, ‘Thanks anyway, see ya.’ But now, it’s, ‘You know, if you got your associate’s degree...’ “

Sally Patch, vice president of workforce and existing business for the Jacksonville Chamber of Commerce, said she thinks hiring will adapt to the needs of employees. She added that Jacksonville has a lot of young workers when compared to the rest of Florida; as a result, she expects growth to keep drawing business into the area.

“We are not a retirement destination,” said Patch. “We are still one of the youngest communities in the Southeast. Growth keeps pace with the labor force.”

 

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