St Petersburg Fl Jobs

Florida unemployment continues to drop, though more government job cuts loom

The government has been playing an oversized role in Florida's struggle to harness its double-digit unemployment rate — for better and worse.

A year ago, the federal stimulus and creation of thousands of temporary U.S. Census jobs helped prop up a state with 1 million jobless. Today, government-related job cuts and budget cutbacks are arguably the biggest obstacle to a faster, broader recovery.

Florida employers have been slowly adding jobs this year, including 28,000 over the past month, pushing the jobless rate down for a fifth straight month to reach a near two-year low of 10.6 percent in May, the state reported Friday. The Tampa-St. Petersburg-Clearwater area added 4,700 jobs this month as its unemployment rate ticked down a 10th of a percent to 10.5 percent.

Among the most encouraging developments, the state's labor force grew slightly by 3,000 jobs at the same time unemployment fell — an indication that the lower rate this time was driven by job creation and not people who stopped looking for work.

The overall picture would have been much brighter, however, if not for a drop in federal, state and local government jobs.

Year over year, the government is down 41,500 jobs statewide, many of them long-gone census jobs. That's three times more than the second-biggest job loser statewide: construction.

It was the first time government led as a job loser, noted Rebecca Rust, chief economist with the Florida Agency for Workforce Innovation, which oversees doling out unemployment statistics and distributing unemployment insurance.

Part of the crunch is directly tied to the $800 billion federal stimulus plan, a third of which flowed directly to the states. Part is tied to the housing crisis. And part to a growing austerity movement within government circles.

Rust predicted government cutbacks to broaden in months ahead as the dry-up of stimulus funds and tax shortfalls force localities to cut back on services and schools to cut positions in an effort to balance their budgets.

"So there will be additional job losses," she said, "but I don't have an account of what they will be."

Last month, Gov. Rick Scott signed a budget that eliminates almost 4,500 state jobs.

Florida's austerity push isn't isolated. Nationally, state and local governments have been shedding jobs at a rate of 25,000 to 30,000 per month "when normally we'd be adding 20,000 to 25,000 a month," said Scott Brown, chief economist with Raymond James Financial in St. Petersburg.

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