First Coast jobless rate drops; falling gas prices drive down inflation

Economic figures for the First Coast, Florida and the nation show encouraging signs from November.

Unemployment rates held steady or went down for the majority of the country and the First Coast is no exception. Paul Mason, economist at the University of North Florida, said the market survey area of North Florida saw a seasonally unadjusted unemployment figure of 5.8 percent in November, down about a tenth of a percent from October for the area including Duval, St. Johns, Baker, Clay and Nassau counties.

Florida's jobless rate held at about 5.8 percent ,which is the national rate, which also remained unchanged in November from October.

Duval County's unadjusted jobless rate dropped from 5.9 percent in October to 5.8 percent in November.

While most of the rates fell or held steady - with the exception of Baker County which went from 5.1 percent in October to 5.2 percent in November - the number of employed actually dropped in that month. Mason said the number of employed on the First Coast went from 693,161 to 687,077 in November.

"Both Duval and the [market survey area] lost numbers of people who were employed," Mason said. "But there are also fewer people who are unemployed."

The number of unemployed people in the five-county area went from 41,038 in October to 39,700 in November.

On the Florida front, Gov. Rick Scott was pleased with the state figures and was quick to take credit for the upbeat economic news. This was the first jobs report for the state after he won reelection Nov. 4.

"Four years ago, we unveiled an ambitious plan to fix Florida's economy and turn the state around," Scott said in a news release Friday. "I applaud our job creators across the state who sacrifice and work hard to create new jobs. Every job impacts a family and we will keep working each day to make Florida the world's number one destination for jobs."

PRICES FALL, TOO

Meanwhile, leading economic indicators and the Consumer Price Index showed solid signs as well for November.

Mason said the First Coast CPI dropped from 115.44 in October to 115.19 in November after seasonal adjustments. The CPI is a prime indicator of inflation. With that rate, combined with other months this year, Mason said the rate of annual inflation would come out to be about .11 percent - virtually no inflation.

Mason said that once again the free fall of gasoline prices, which fell about 8 percent in November alone, is driving the mild inflation rate.

"It is all about energy and it's driving it downward," Mason said.

Corresponding to that is declining food prices. Other price drops in November included hotel rates, about 6.5 percent, car and truck prices, about 5.7 percent, and alcoholic beverage prices, 4.5 percent.

There's some downside to the plunge of oil prices, Mason said. The oil industry which is losing value on stock prices right now. But for the average consumer, the steep drop in gas prices at the pump is good news.

"For the average consumer, that's an extra $25 a week that's in your pocket," Msason said. "It's an interesting dynamic when gas prices fall; people tend to spend the money on other things falling [in price]."

Drew Dixon: (904) 359-4098