Jax Daily » The Economy

Introducing HireJax.com, our brand new First Coast job listing site

Austin Cassidy — Wed, 07 Jan 2009 05:19:32 +0000

Obviously, times are tough… and there are more people out there looking for work than there are jobs available. But it’s not impossible to find employment - you just have to know where to look. And we want to help!

That’s why JaxDaily is proud to announce the launch of HireJax.com, a brand new job listings board serving Jacksonville and the surrounding counties. Our goal with HireJax is to help connect local job seekers with companies who are looking to fill positions immediately.

If you are a company or organization looking to hire someone, consider posting your job on HireJax.com at our introductory rate of $25 for a 30 day listing! It’s a pretty good deal and it may not last for very long.

The Fed: Struggles continue in 2009

Austin Cassidy — Mon, 05 Jan 2009 23:41:12 +0000

As expected, consumer spending slowed in early 2008 amid declines in real estate values and the run-up in energy prices. A tax rebate stimulus temporarily boosted spending in the second quarter, but growth in consumer spending remained restrained.

Slowing economic activity led to weakening labor markets. Nonfarm payroll employment began to decline in January as firms increasingly held back on hiring, raising the unemployment rate. Layoffs were widespread, and employment in residential construction and parts of the manufacturing sector bore the brunt. The American economy slipped ever deeper into a full-blown recession.

But sometimes it’s easy to be optimistic that the start of a new year will be new opportunities and a fresh start. To those who might think that way, the Federal Reserve Bank of Atlanta offers up a dose of hard reality. The Fed seems to think that the Southeast is in for “more of the same” for 2009, in terms of our region’s overall economic health. A direct path to recovery is unlikely, and, as we have seen, events will arise to knock us off the path to a more stable economic environment.

The Jacksonville Business Journal reports…

In its EconSouth publication, [the Fed] suggested employment levels in the Southeast could get worse before improving. And it’s probable consumer spending and personal income will remain held back until employment picks up.

Energy markets remain uncertain, EconSouth noted. Prices, which fell as sharply in the latter half of 2008 as they rose in the first half, could go up again if global economic conditions improve and spur business and consumer demand.

Housing activity has shown some recent signs of stabilizing, but recovery is unlikely to occur quickly, EconSouth said.

But plans for expansion in auto and aerospace manufacturing should help bolster the region’s economy in 2009. Notably, a new Kia plant will open in West Point, Ga. It began training workers in March 2008 and will begin production in late 2009.

In 2008, the Southeast’s economy struggled with financial market turmoil, housing market and credit crises, rising food and energy costs and job losses. By the third quarter, the unemployment rate was at its highest level since the 1991 recession. Consumer spending slumped as consumers felt the pinch of soaring energy and food prices, the credit crunch and uncertainty about the economy.

The rate of home foreclosures was high in Georgia during 2008, particularly in metro Atlanta. Real estate loan problems also led to the failure of five of the state’s banks last year.

University endowments take a beating

Austin Cassidy — Mon, 05 Jan 2009 03:50:43 +0000

State universities in Florida and around the nation have been battered by the near collapse of the financial markets over the past few months. These institutions of higher learning have endured many billions of dollars of losses, and the pain may be spreading.

From the Sun-Sentinel…

“December is the biggest month in philanthropy giving with the closing of the year, but all indications are people are hurting and we’ll see a reduction,” said Leslie Bram, associate vice president of the University of Florida Foundation, the fundraising arm of UF.

UF’s endowment, the largest in the state, dropped about $100 million from June 1 to Sept. 30, when it was at $1.1 billion. Those are the most recent figures available before the university closed for the winter holidays.

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Many local manufacturers are still looking for new employees

Austin Cassidy — Sun, 04 Jan 2009 07:55:03 +0000

The First Coast Manufacturers Association recently conducted a survey of its member companies and their current hiring plans — the results of which do offer some encourgaing news for job seekers.

In excess of one-third of the manufacturing companies that responded were currently looking to hire for at least one position inside their company. More than half of the respondants said that they had plans to hire new employees during the first half of 2009.

“While we certainly recognize that companies are facing serious economic challenges at this time, these survey numbers are encouraging,” said Sherri Mitchell, Director of Education and Finance for the First Coast Manufacturers Association.

The survey was conducted in early December and included 59 manufacturing firms of varying size from around the First Coast. Combined, the surveyed firms currently employ well in excess of 20,000 workers in the Jacksonville area.

New year brings higher minimum wage

Austin Cassidy — Thu, 01 Jan 2009 06:40:47 +0000

Minimum wage workers in Florida had a little extra to celebrate about when the clock struck midnight.

That’s because the state’s new minimum wage will officially take effect on January 1st… moving the marker up to $7.21 from $6.79 last year. The extra 42 cents per hour will mean that Florida’s 400,000+ minimum wage workers will earn an extra $17 per 40 hour work week.

However, the Jacksonville Business Journal notes that what will help out some workers, may also result in fewer overall jobs available to entry-level workers….

Those wage hikes will cost jobs, according to the Employment Policies Institute, which points out that with the July increase, Florida’s minimum wage will have risen 41 percent in the last four years.

According to research from the University of California at Irvine, every 10 percent increase in the minimum wage causes an 8.5 percent drop in employment for young minorities and high school dropouts.

Since 2004, Florida’s minimum wage has increased by $2.06. For a business with 20 entry-level employees, that increases labor costs by more than $80,000 a year.

“Decades of economic research by leading economists at major universities is consistent with what we’re seeing in Florida — increased job loss follows mandated wage hikes, particularly among the least-skilled and least educated workers,” said Kristen Lopez Eastlick, senior economic analyst for the Employment Policies Institute. “If government is mandating businesses increase their labor costs regardless of skill levels or productivity, the result is going to be lost jobs.”

Jacksonville selected for ‘Emerging 200′

Austin Cassidy — Sat, 27 Dec 2008 20:32:56 +0000

The U.S. Small Business Administration’s Emerging 200 initiative will be expanded in the spring of 2009 to include five new cities – Detroit; Dallas; Denver; Jacksonville; and Portland, Ore. – SBA Acting Administrator Sandy K. Baruah announced last week.

The announcement comes as 200 executives of inner-city small businesses in the first Emerging 200 class are graduating in 10 U.S. cities – Boston; Philadelphia; Baltimore; Memphis, Tenn.; Atlanta; Chicago; Milwaukee; Albuquerque, N.M.; New Orleans; and Des Moines, Iowa – over the next few weeks.

“We launched the Emerging 200 initiative to identify and support inner-city small businesses that have substantial potential for growth and provide them with high-level training, networking, and other resources necessary for success,” said Baruah. “By helping them prepare for the challenges of today’s economy, SBA is tapping into the power of local entrepreneurs to transform their communities, generate new jobs, and make real and lasting changes.”

Small business executives in the Emerging 200 initiative participate in an intensive and comprehensive program, draw from each other’s experiences and expertise, develop connections with local capital providers, and complete a growth plan by the end of the program.

“I cannot say enough about how valuable this class has been,” said Kelly Sargent, president of Brainstorm Marketing in Des Moines, Iowa. “This class has given me the knowledge, courage, and access to experts and 19 other CEOs who face the same challenges I do. I highly recommend e200 to any business owner regardless of the size of the company or longevity.”

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Biomass gains steam in Florida

Austin Cassidy — Tue, 23 Dec 2008 05:04:32 +0000

Solar, wind, and tidal energy are the forms of alternative energy that generally get the most buzz. But biomass is catching on in a very big way around the state of Florida.

The story from the Miami Herald…

Nobody loves biomass. When talk turns to global warming and the green movement, it’s hardly ever mentioned. Biomass can be garbage (literally) or wood chips or sugar-cane remnants or grass.

Still, among energy experts, biomass has some strong supporters, and for good reason: Right now, virtually all the renewable-energy power in Florida comes from biomass, including three plants in Miami-Dade and Broward.

What’s more, it’s cheap — cheaper in some instances even than coal, which is generally considered the nation’s least expensive way of producing electricity but is also the biggest producer of greenhouse gases that scientists say are heating up the globe.

”We’re very strong supporters of biomass,” says Stephen Smith, head of the Southern Alliance for Clean Energy. ”In the short run, it will be a real workhorse.” But he adds: “There are various shades of green in biomass. Some is better than others.”

Click here to read the rest of this story.

Florida unemployment hits 7.3%

Austin Cassidy — Sun, 21 Dec 2008 23:58:16 +0000

Florida’s unemployment rate continues to rise.

State officials said Friday unemployment went up 0.3 percent to 7.3 percent in November, the highest level it has been at in over 15 years. Economists expect things to get even worse before the recession ends, perhaps hitting 8 percent next year.

The November rate means that 680,000 people were jobless in Florida.

Could a bad year for the Jaguars spell move to a new city?

Austin Cassidy — Mon, 08 Dec 2008 14:05:13 +0000

Could this year’s bad on the field performance be the first step in the Jaguars’ departure from Jacksonville?

You might say that we’ve had bad years before, and you would be right. And you’d probably say that we’ve had rumors of the team leaving for a bigger city before, and you would be right.

But there’s still real reason to worry.

A rumor swirled at the start of this season that Wayne Weaver had enough of owning an NFL team and was looking to sell. The talk picked up so much steam that Weaver had to come out and calm everyone down. Believe in now, they told us.

At the start of the season did anyone imagine we’d be sitting here with a team at the bottom of the division and a still unnamed stadium? I sure didn’t.

On the plus side, this season we haven’t seen the kind of black-outs we did in 2007. But that’s primarily because last year’s team made it to the playoffs and helped spur ticket sales.

With a 4-9 record, I can already see the empty seats come next year.

And it’s unfortunate to say, but Jacksonville fans don’t cut their team a lot of slack. If they’re winning, everyone is a fan. If they’re losing… well, just listen to some of our local sports talk radio.

Now, at a time when our city’s budget is bent almost to the breaking point, the team is asking that more than one-hundred million dollars in improvements to the stadium with no name.

The possibility of another city making a bid for the Jaguars is very real, particularly if Jaguar fans give up on their team.

It’s time to believe in tomorrow. Or at least to hope that there will be a tomorrow for the Jacksonville Jaguars.

Local unemployment rate at 6.6%

Austin Cassidy — Sat, 22 Nov 2008 17:29:27 +0000

According to the Florida Agency for Workforce Innovation the current unemployment rate on the First Coast in October was at 6.6%, which is up from 6.4% last month and from 4% last October. Statewide, Florida’s unemployment rate stands at 7%, a significant increase from 4.4% a year ago and up slightly from 6.9% in September.

From the Jacksonville Business Journal…

At the county level Duval had the highest unemployment rate at 6.9 percent, up from 4.2 percent a year earlier. Next highest was Baker County at 6.4 percent (3.5 percent a year earlier), Nassau at 6.1 percent (up from 3.5 percent), Clay at 6 percent (up from 3.7 percent) and St. Johns at 5.9 percent (up from 3.5 percent).

In the metro area there were 641,000 people employed in October, about 3,000 fewer than in September and 7,000 fewer than a year ago.