Jacksonville’s unemployment rate jumped higher in January, a normal seasonal trend as businesses that added workers for the holiday season reduce staff.
The jobless rate in the Jacksonville metropolitan area of Baker, Clay, Duval, Nassau and St. Johns counties rose from a revised 3.2% in December to 3.8% in January, the Florida Department of Commerce reported March 17.
The December rate was originally reported as 3%, but the agency revises the data for the previous year as it reports on January’s trends, which is why the January report was delayed until March.
The Department of Commerce is scheduled to provide labor market data for February on March 28.
Indicators show uncertainty
Separately, a monthly survey of Jacksonville area manufacturers by the University of North Florida’s Local Economic Indicators Project showed an uncertain outlook in February for the Northeast Florida economy.
A Purchasing Manager’s Index derived from the survey stood at 50 in February. That “indicates a holding pattern, with no significant expansion or contraction in overall manufacturing activity,” UNF economist Albert Loh said in his monthly report on the survey.
An index above 50 indicates expansion while a reading below 50 would indicate contraction.
Labor market trends
The labor market report by the Department of Commerce showed unemployment trends in all five counties in the metro area were basically the same.
Duval, Baker and Clay’s unemployment rate all rose from 3.2% to 3.8% in January, while Nassau and St. Johns both rose from 3% to 3.7%.
Florida’s statewide unemployment rate rose by 0.1 percentage point to 3.5% on a seasonally adjusted basis. The Department of Commerce does not adjust local area data for seasonal factors in its monthly reports.
The agency said nonfarm businesses in the Jacksonville area shed 13,300 jobs from their payrolls from December to January, but those businesses reported a net gain of 11,800 jobs from January 2024 through January 2025, a 1.5% annual gain.
The largest gains in the 12-month period came in the private education and health services sector which increased by 4,500 jobs, or 3.5%.
The leisure and hospitality sector added 2,400 jobs, or 2.7%, and construction added 1,900 jobs, or 3.7%.
The biggest job losses came in finance and insurance, which declined by 3,100, or 5%.
The manufacturing sector added 200 jobs, or 0.6%, in the 12 months through January.
Manufacturing jobs contract
The employment index from the UNF manufacturers’ survey stood at 48 in February, indicating that the sector experienced a slight contraction in jobs.
Loh said the decline was “likely due to cost-cutting measures and economic uncertainty.”
The survey’s business activity outlook index was 51 in February, suggesting a cautious outlook for the local economy in the next 12 months.
“While the reading indicates a slight expansion, it is only marginally above neutral, meaning confidence in future growth remains fragile. Many businesses are likely expecting some improvement in demand and overall market conditions but are hesitant due to ongoing economic uncertainties,” Loh said.
“Survey responses indicate that tariff uncertainty is a major factor influencing business confidence, with several businesses expressing concerns. The unpredictability of trade policies appears to be limiting companies’ ability to plan ahead, and concerns over labor and inflation are compounding the issue.”