ORANGE COUNTY, Fla. \u2014 Florida\u2019s unemployment rate has jumped from the mid-3% range one year ago to the mid-4% range as of February, sparking debate about the health of the economy amid increasing signs the state\u2019s momentum is slowing down.<\/p>\n
The January report showed Florida experienced one of the biggest year-over-year increases in unemployment to 4.9%. Most states\u2019 rates rose a fraction of a percentage point. Florida\u2019s increase was several times larger.<\/p>\n
February\u2019s preliminary report showed some relief, with the rate falling to 4.6%. BLS administrators cautioned that February\u2019s numbers were subject to revision when they published their March statistics.<\/p>\n
University of Florida economist Amanda Phalin said she wanted a few more months\u2019 worth of data before she drew too many conclusions, but she said there was a disconnect between the way state leaders talked about the economy and what the numbers showed.<\/p>\n
\u201cWe\u2019re living in something called a K-shaped economy, where you have the top echelon of income earners are really driving the majority of economic growth,\u201d she said. \u201cThe rest of us in the middle and on the bottom are struggling.\u201d<\/p>\n
Phalin said 80% of the spending now comes from the top 20% of earners, which would ultimately hurt the economy because it\u2019s driven more by middle class spending.<\/p>\n
She equated Florida\u2019s situation to a Jenga tower, with a weakened middle where pieces had been removed.<\/p>\n
\u201cIf you have the middle class and the lower middle class that don\u2019t feel like they have the money to spend, and you have the consumer spending that\u2019s being driven by the higher income people, eventually we\u2019re going to hit a wall,\u201d she explained.<\/p>\n
Those fears have prompted some prominent politicians in the state to call on other leaders to refocus.<\/p>\n
\u201cFlorida had one of the worst performing job markets over the past year,\u201d Sen. Rick Scott (R-FL) posted on X. \u201cOur state needs to stay focused on adding private sector jobs and driving down cost of living \u2014 just like President Trump is trying to do across the country.\u201d<\/p>\n
On the streets of Orlando Monday, the \u201cwall\u201d Phalin talked about could be felt by those who were actively looking for a job.<\/p>\n
Angel Caraballo explained he had been out of work since December. He was an automotive painter by trade and said he had no issues finding employment two years ago.<\/p>\n
\u201cThey said it\u2019s the wonderful state it is but not, job wise,\u201d he said.<\/p>\n
Click here<\/a> to download our free news, weather and smart TV apps. And click here<\/a> to stream Channel 9 Eyewitness News live.<\/p>\n