More Jobs Don't Mean Higher Wages

By Donna Callea, Business Writer
News-Journal Online




June 17, 2006

DAYTONA BEACH -- Area workers remain in a pretty cushy position -- at least as far as landing a job, state employment figures released Friday indicate.

But wages in Volusia and Flagler counties remain significantly below hourly wages statewide and have barely budged upward from a year ago, despite the tight labor market here.

The jobless rate in Volusia and Flagler counties was 2.8 percent in May, slightly higher than April, but still below the 3 percent benchmark labor experts consider full employment.

Salaries, however, have yet to reflect the robust business economy, "perhaps because of the industry mix in our area," said Sharon Warriner, of the Workforce Development Board Center for Business Excellence. The publicly funded agency serves employment needs in Volusia and Flagler counties.

The problem is "more people are employed at lower-end jobs than higher-end," she said, noting that "we're truly a hospitality-driven area."

State figures show the local leisure and hospitality industry gained the most jobs -- 1,600 -- of any sector over the past 12 months. Construction saw the biggest percentage increase in workers -- 8.9 percent.

But while electricians, plumbers and other highly skilled workers may be able to command high salaries, many local jobs don't pay all that well.

"It's the lower-skilled jobs that are in abundance," Warriner said. That's reflected in the paychecks that are cashed locally.

The estimated 2006 median wage in Volusia County is $11.76 per hour, according to the latest state labor statistics.

For Flagler County (which is counted with Northeast Florida) it's $11.73.

Wages in the two counties are nearly 11 percent below the state's overall median hourly wage of $13.03 -- and have increased less than 2 percent from 2005.

The area's wages have always been lower than other parts of the state, said Mark Soskin, a University of Central Florida economist and expert on local employment trends.

"Everyone who can leave, does," he said, for more lucrative job opportunities elsewhere. Those who stay, tend to do so because they're "place-bound." They can't or don't want to move.

Statewide, the unemployment rate last month was 3.2 percent, up from 3 percent in April.

Florida's jobless rate is 1.4 percentage points lower than the national rate of 4.6 percent.

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