The job market in Florida seemed robust over the past few months. In fact, a 2023 report showed that four of the top ten cities with the hottest labor markets were in Florida. No wonder remote workers have been attracted to the state.
Ironically, however, in an interesting twist, the U.S. Bureau of Labor Statistics (BLS) has revealed that many Floridians quit their jobs in February. If you’re wondering why, we’ve got you covered. Let’s get started!
Florida Has Broken A Record
The BLS’s data shows that the number of resignations recorded rose by about 35,000, one of the nation’s highest.
This new value is a 0.4% increase compared to the previous data.
This Means More Jobs!
With substantial numbers of employees quitting their jobs, about 557,000 roles are now open for Floridians who want to change jobs. So, if you want to secure a new role, now is probably the best time.
However, we can’t help but imagine what you’re probably thinking — Why is everyone quitting? Maybe that’s already a red flag?
A Little Back Story
During the 2020 COVID-19 pandemic, Florida’s unemployment rate increased by 14%, causing an economic crisis. Fortunately, the state recovered, but the unemployment rate was still around 3.1% in February.
This is a reasonable number, especially compared to the national unemployment rate of 3.9%. In other words, it’s safe to say that the labor market in the state is fairly robust.
So, Why Are People Quitting
Contrary to your expectations, the massive resignation may be a green flag. There are speculations that people are quitting their jobs because they are finding better jobs.
The figures show that employers in the state are actively recruiting despite the rise in job quits.
Other Positive Signs About Florida’s Labour Market
Another statistic showing that things aren’t so bad in Florida is that layoffs fell from 105,000 to 98,000 in February.
The education and health sector gained 57,000 workers, while the information industry lost 900 jobs.
The Positive Signs Started In 2023
Just late last year, a nationwide report stated that people were migrating from expensive states in the Sun Belt to more affordable ones like Florida because of high mortgage rates and housing costs.
According to the Wall Street Journal, another factor that made moving to the state attractive was the lack of state income tax.
A Top Choice For HomeBuyers
Cities like Tampa, Orlando, and North Port-Sarasota have become some of the best Floridian metros for homebuyers, leaving expensive places like New York, San Francisco, and Los Angeles.
Source: Flickr/First Financial
In October last year, 3,700 people moved from Orlando, while 3,600 and 2,800 moved to North Port-Sarasota and Tampa, respectively (mostly New Yorkers).
What The Sale Price of A Home Is Like In These Cities
As revealed by Redfin, the average price of homes in New York City as of October last year was $762,500.
In Florida, the prices range from $385,000 in Orlando to $400,000 in Tampa. Houses are even much cheaper in North Port-Sarasota, with a median sale price of $378,000.
There’s More!
Top companies, like Citadel, a hedge fund firm, have announced their decision to relocate their headquarters from Chicago to Miami, reinforcing the state’s more economical real estate market.
Another reason some Americans are moving to Florida is the intention to take advantage of the prevailing homeowner’s insurance issues. As insurance companies pull out, the value of homes in vulnerable areas will decline drastically with time.
Florida’s Insurance Crisis
People continue to migrate to Florida despite the state having the most expensive home insurance premiums in the US. Floridians have to pay a whopping $4,200 annually instead of the national average of $1,700. One reason for this is that the state is endangered by devastating weather issues like flooding and hurricanes.
This has caused major insurers to drop out of the state. For houses still under insurance, the owners are struggling to pay the ever-increasing premiums. For example, one Floridian explained that “ the value of my home, which I bought for $150,000 in 1988, is now valued at over $600,000. I find this ridiculous.”
Other States Have Also Recorded A Jump In Job Quits
It’s not just Florida that has lost workers. In February, 25,000 people left their jobs in Missouri, while Nevada recorded 10,000 job quits.
Another school of thought behind job quits is that job hopping is the only way to get a salary raise.
What Reddit Users Are Saying
In light of the recent job resignations, here’s what some Reddit users have said. The only way to stay above the rising COL tide is to job-hop. I haven’t stayed in a role for more than 2 years. Compared to my father’s 35 years at one company. – smaguss
My wife (teacher) got a $0.03/hour raise this year. She’s quitting at the end of the semester. – Xennial_I_Suppose. I’ve job-hopped three times in 4 years and have quadrupled my salary. I wasn’t getting a raise like that anywhere. – FredChocula
Mixed Feelings Or Not?
There have been mixed feelings about Florida’s recent developments. One Reddit user commented that Florida has gone from a “low cost of living state to a high cost of living state faster than any state in history” (another record broken). Changing jobs is probably the only way to survive. But at least there are jobs, right?
Ironically, the high cost of living is making others consider emigrating. An 83-year-old woman had to return to work part-time to afford her home insurance. She explained her options: “I am exploring moving to a cheaper area in Florida into a home without condo association and insuring the bare minimum or not at all, or leaving Florida for good.”
