Business

Florida Grows Private-Sector Jobs While Government Work Withers

By: Kenric Ward | Posted: September 21, 2011 3:55 AM

Credit: Florida Political Press/Source: National Bureau of Labor Statistics

Gov. Rick Scott is roughly on track toward his goal of "creating" 700,000 private-sector jobs in seven years. But public-sector workers are hoping that the current employment trend in their field does not continue.

According to the U.S. Bureau of Labor Statistics, Florida added 87,200 private-sector jobs from January through August this year. At the same time, public-sector employment fell 15,600 -- resulting in a net increase of 71,600 positions.

The state's private-sector employment growth matches or beats the sluggish job-creation rate nationally. Though Florida's jobless rate was 10.7 percent in August, that's down from 11.6 percent a year ago.

The U.S. economy added no new jobs last month -- the first time that's occurred since 1945.

Scott does not see the public-vs.-private equation as a zero-sum game.

"Governor Scott campaigned on reducing the size of state government in order to grow private-sector jobs. The most recent job numbers show that for every job lost in the public sector, Florida gained two jobs in the private sector," said deputy communications director Amy Graham.

"There is still a long road ahead, but, by removing the red tape that restricts economic development, we are clearly on the right path to getting Florida back to work," she said.

Citing figures from the Agency for Workforce Innovation, Graham said of the 15,600 public jobs lost January to August, 600 were in federal government, 6,600 were in state government and 8,400 jobs were in local government.

"Of the state jobs eliminated in this year’s budget, about 2,000 of those were vacant positions," she reported.

Dale Brill, president of Florida Chamber Foundation, draws a distinction between private- and public-sector employment, and says the state "is on the right track."

"Government can't create without taking. For every state job created, you have to take capital from the private sector," Brill says.

By contrast, employment gains in the private sector perpetuate a "virtuous cycle of innovation that enables productivity. Productivity creates value and the consumer wins," Brill explains.

Noting that the bulk of the public sector is unionized, Brill says "organized labor" distorts the job market and ultimately leads to higher jobless rates.

"When anything but the free market determines the wage rates, it creates unemployment," he asserts.

Florida progressive groups say a winning jobs formula requires both quantity and quality.

"Rick Scott's job-killing spree has eliminated thousands of salaried jobs with benefits such as health care, pensions, and paid sick leave that enable middle-class Floridians to spend time with their families," said Susannah Randolph, executive director of Florida Watch Action.

"Floridians need better options than working two or three hourly wage jobs just to make their mortgage payment. Just today, Rick Scott bragged about job creation that hinged upon Florida's 'cheap labor pool.' Is this how the governor views middle-class Floridians?"

Mark Ferrulo, executive director of Progress Florida, expressed similar frustration.

"Is Rick Scott turning Florida into Rick Perry's Texas, where there are more low-wage workers than anywhere else in the nation? That's the question Floridians need to ask."

"There's a difference between hourly wage, no-benefits jobs and the kinds of jobs that help rebuild the middle class," Ferrulo said.

Tom Tillison, an Orlando-area tea party activist, said liberal groups and their union allies protest too much.

"Despite the frequent (and false) claims from the left of teachers being laid off, public-sector job losses are most likely due to state and local government agencies streamlining in a difficult economy by not filling open positions," Tillison said.

"It's a clear indication of bloated government payrolls and reinforces the policies of Governor Scott toward shrinking the size of government to spur private sector job growth.

"All the resistance toward Scott's policies coming from public-sector unions is more about reduced union dues coming in than it is about what's best for the state," he concluded.

Contact Kenric Ward at kward@sunshinestatenews.com or at (772) 801-5341.


Comments (4)

jackson
11:11PM SEP 21ST 2011
When you do not have adequate funding for government services and good state workers (including healthy schools, health services, prison system, etc) and adequate regulations to control pollution and toxic waste, your communities will deteriorate, your shools will become horrible, good employees will leave the state work force, and then no one will want to come to Florida for fun or work because they will not want their kids living or vacationing in a hell-hole. You idiots that just swallow the crap that republicans sell you about government being "bad"..shows you are mindless and absolutely clueless. You just don't get it and never will. Good government and business needs a healthy relationship to benefit all people. The Florida state employees are the lowest paid and the smallest group in the nation. Most people find it easy just to hate someone ...shame on all of you.
Dorine in FL
2:29PM SEP 21ST 2011
President Obama's war on the economy and jobs has done more to kill government jobs on the local levels than anything, as counties and cities all across America struggle to balalnce budgets amid a myriad of new regulations that cost millions to enact. Unfortunately these municipalites can't print monopoly money to pay the difference and everywhere you see city and county workers being laid off or let go. The fact that Governor Scott is able to bring jobs into Florida and balance the Florida budget is almost miraculous considering the deficit and unrelenting jobs killing policies of this Administration. Put the blame where it belongs and that would be squarely on the White House and congressional Democrats who took a crisis and 'transformed' it into a disaster!
Robert Lloyd
8:40AM SEP 21ST 2011
>>Florida added 87,200 private-sector jobs<<

What OTHER kinds of jobs are there? Gov't can't create jobs, but only stay out of the way so free enterprise can. The gov't can only steal from us and give it to themselves. And if that isn't enough, they are then put in a position over us to trample our businesses with their 'expertise' that somehow they think we can't live without.

I think the Scott administration should be credited not only with 87,200 jobs, but but but... PLUS cutting waste of 15,600 bureaucrats for a net gain of 102,800. Someone (a real person and not on the gov't payroll) tell me why I am wrong in believing THIS is the way it should look statistically.
Jack Land
8:09AM SEP 21ST 2011
This only tells part of the story. What is the average salary of these new jobs? More businesses have closed in Tallahassee but new McDonald's are opening up.

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