Gulf Coast unemployment rate continues to rise

The Gulf Coast's unemployment rate has risen to 5.8%, up from just over 5% this time last year, according to new data from Florida Gulf Coast University's (FGCU) Regional Economic Indicator.John Shannon, a research economist at FGCU, said the labor market challenges are discouraging some individuals."(They) might even just exit the labor market altogether, so that entry point into a labor market has also created some challenges for people trying to find a new job," Shannon said. A few years ago, Southwest Florida experienced record population growth, a strong tourism recovery, and extremely high demand for workers, which helped push unemployment to historic lows. Today, that momentum has slowed. "We've seen industries across all other sorts of industries decline or remain relatively stagnant over the past year or so," Shannon said. Job growth has turned negative, consumer confidence has weakened, and many small businesses are navigating higher costs and economic uncertainty. FGCU researchers say these factors are contributing to a more challenging job market for people looking for work. "If you need a retail trade worker, it might not be as difficult for a company to find as a software developer. So business might be more likely to cut back and adjust to market conditions about that for retail trade workers relative to some of the higher-skilled labor," Shannon said. However, officials say businesses are becoming more optimistic about the future, which could lead to more job openings. Healthcare and education are two sectors currently seeing an increase in job opportunities.DOWNLOAD the free Gulf Coast News app for your latest news and alerts on breaking news, weather, sports, entertainment, and more on your phone or tablet. And check out the Very Local Gulf Coast app to stream news, entertainment and original programming on your TV.