Unemployment Drops as Economy Improves
May 18th, 2012 by Mike VasilindaFlorida’s unemployment rate fell three tenths of a percent in April, despite a net loss of twenty seven hundred jobs. Eight hundred and four thousand people remain out of work, but as Mike Vasilinda tells us, there are encouraging signs for the states economy.
Floridians are spending again. Sales tax collections are 50 million above estimates. Corporate tax collections were down slightly last month, but they are still 20 percent higher than this time last year.
Last month, the tax that is levied on the sale of new and used houses was 24 million dollars over estimate.
New Housing starts are up 26 percent since January. That’s translating into more steady work for this flooring crew.
“Seems like the economy is picking up and we’re starting to just hustle more work and see more opportunities,” Brent Zapata of Zapata Hardwood Flooring said.
Blocks from the state Capitol, construction of 75 hundred square feet of retail that has been on hold since 2008 is underway. Developer Roger Osborn says the time was right to move.
“Well, I think the momentum is coming back in the economy and things are picking up retail wise,” Osborne said.
When houses are built, porta-potties and dumpsters are rented. Sales tax collections on construction items showed the strongest growth, up seven percent ( 7.1). Auto sales came in a strong second, jumping by six percent (6.1). Consumer spending is up four percent, which is making retailers happy (4.0).
“Consumer confidence equates to consumer spending and consumer spending means more revenue for the state of Florida, more tax collections, etc. More jobs,” Rick McAllister, President of the Florida Retail Federation.
Even the surcharges on old tires and batteries was over estimate in April by a million dollars. That suggests that those who aren’t buying new are fixing up the old.
Virtually every category of state tax collections are up for the year, and if the trend continues, the next time lawmakers meet, they should have more money for schools and other needs.
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