The Miami Job Market and Where We Stand
As we move further away from the ‘Great Recession’ and look towards a brighter economic future, we look to statistical proof for upward growth. So where do we rank the Miami job market within this developing economy?
According to the Federal Bureau of Labor Statistics, the unemployment rate in
Miami was at 5.4 percent as of last September. With the national rate at 5.2 percent, a ‘normal’ rate averages around 5 percent. At this point, it can then be assumed that the labor market is healthy and wages will soon start to rise. Comparing this assessment to that of the Miami area, it can then be expected that the city is well on its way to a strong job market. However, the strength of the market cannot be measured by the unemployment rate alone.
To calculate the unemployment rate you must first categorize the unemployed from the employed. Simply put, the employed are people with jobs; the unemployed people are without. Yet not everyone falls into such a binary cataloguing. The term ‘unemployment’ has endless definitions. According to the official calculation, an unemployed person can be jobless, looking for a job, and/or available to work. This excludes any individuals living in institutions (ex. prisons) and those on active duty in the Armed Forces. Though, due to this labeling, not all individuals are taken into account of this statistic. Where do retirees, stay-at-home parents, students and disheartened ex-job seekers land?
For a more accurate reading of the current job market, we must consider some other socioeconomic factors. Recently WalletHub.com compared 150 of the most populated cities in the U.S. to determine their job market strength. Miami was ranked 91st, following behind Tampa (ranked 23rd), Orlando (ranked 25th), and Jacksonville (ranked 70th). The site compiled 8 relevant metrics to determine the standing of each metropolitan area. They are calculated based off of:
- Job Opportunities: The number of job openings divided by the number of unemployed residents.
- Employment Growth: The rate of annual job growth, adjusted for the working-age population.
- Monthly Median Starting Salary: Which was adjusted for the cost of living.
- Unemployment Rate
- Industry Variety
- Full-Time Employment: The number of part-time employees for every 100 full-time employees.
- Percentage of Employed Residents Living Under the Poverty Line
- Disability Friendliness: The percentage of employed persons with disabilities.
These new measures shed a broader light on the current economy of our city. As compared to WalletHub.com’s 2015 study, Miami has shown exceptional growth within the last year. Private-sector payrolls have grown by 2.6 percent, taking 24,360 workers out of unemployment. Current predictions believe that the job seeker of 2016 will be entering a strong job market in Miami due to “strong population growth, well-developed infrastructure and deep international linkages.” We can also expect lower unemployment rates, a more stable real estate market, and an increase in tourism.