18,000 Volusia residents don’t have jobs
By Al Everson
posted Nov 17, 2008 - 9:44:34am
Volusia County’s unemployment rate is higher than national and state averages, and home-loan defaults are rising locally.
The county Department of Economic Development put together data from a number of sources for its gloomy Nov. 13 report to the Volusia County Council.
One factor driving up the unemployment rate is the sheer number of available workers.
“Our work force has continued to grow,” county Economic Development Director Rick Michael said.
He briefed the County Council on the local economy, noting Volusia has just over 258,000 people employed or able to work, and about 18,000 of them do not have jobs.
Last year, Volusia County had almost 256,000 people employed or available to work.
The county’s unemployment stood at 7.2 percent for the fourth quarter of the 2007-08 fiscal year, higher than Florida’s 6.8 percent and the nation’s 6 percent.
The jobless figure for the most recent quarter is also markedly higher than the rate for the same quarter in 2007, which was 4.5 percent in Volusia County. That equated to approximately 11,000 workers whose names were not on a payroll.
Some of the increase in the unemployment, Michael said, is due to the loss of jobs in surrounding counties, especially Seminole and Orange, as well as job cuts locally.
While construction, manufacturing, and professional and business services have fewer workers this year than they did last year, there was employment growth in health care and hospitality, Michael said.
He said nurses and clerical personnel are finding health-care jobs.
“It’s primarily in doctors’ offices,” he said.
Although some restaurants have closed as more people clutch more tightly to their wallets, and although some hotels and motels along the ocean side have gone out of business, the hospitality sector grew by about 200 positions and employs about 22,000 people.
Uncertainty pervades other sectors, especially manufacturing. About 10,000 people in the county work for companies that make things.
“Volusia County’s manufacturing community is very much tied to the auto industry,” Michael said.
The future of those companies likely depends on whether the federal government will “bail out” the Big Three U.S. carmakers, he said.
The tempo of the wars in Iraq and Afghanistan — which may be affected by the new administration — also will probably affect employment at such companies as Raydon, which makes military-training simulators.
Building industry
Besides employment, Michael’s briefing covered construction and home foreclosures.
While there has been a sharp downturn in the number of building permits issued in the past several months, Michael said 2008 had been a pretty good time for commercial development.
The recently ended quarter saw almost $79 million in new commercial construction begun or nearly begun, while almost $96 million in commercial building permits were issued during the same period last year.
Of the $79 million, Daytona Beach issued $41 million in permits and Port Orange approved $17.7 million in commercial building projects.
Perhaps to no one’s surprise, home construction has fallen even more sharply — down to about half of the almost $145 million value for the July-September period of 2007. In fact, residential building permits issued by the county and the cities for the same three months of 2008 have a value of almost $75 million.
The slowdown in home building is related to the steep increase in foreclosures. Information gleaned from the Clerk of the Court’s Office shows there were 4,195 foreclosures in Volusia County in 2007, and the number of homes repossessed in the first nine months of 2008 totals 5,679.
Of those 5,679, only 739 have been sold, leaving a glut of houses on the market and driving the prices of many of them lower.
“It’s a serious concern to us. It represents about 8 percent of our housing stock,” Michael said.
No quick fix
As 2008 draws to a close, Michael said, there is no quick turnaround in sight.
“We’re anticipating, Mr. Chairman, 2009 is going to be a tough year,” he told County Chair Frank Bruno and his colleagues on the council.
Asked if the current situation is the worst he has ever seen or experienced, Michael replied, “No, this is probably the hardest time they’ve seen in Florida.”
“The hardest time I’ve seen was in western Pennsylvania in the early ’80s. I’ve seen it a lot worse,” he said.
The Sunshine State, despite its woes, may be better poised for a recovery.
“Florida’s economy is more diversified,” Michael said. “If you’re sitting up in Michigan right now, they’re not going to recover.”
Black Thursday
In what may be termed Black Thursday, the economy overshadowed and leavened the County Council’s Nov. 13 meeting. Earlier in the day, the council approved a request for federal assistance to deal with the growing number of foreclosed and empty homes. The county is asking for $5.2 million from the U.S. Department of Housing and Urban Development to help distressed residents.
“This program is only for homes that are in foreclosure or abandoned,” said Ed Jasper, the county’s director of Community Assistance. “HUD has placed an 18-month time frame when these dollars have to be spent. ... Twenty-five percent of these funds must be for people below the median income.”
The county must apply for the grant before Dec. 1, Jasper added.
“Most of the calls I receive are from people who are having trouble making their payments, and are on the verge of losing their homes,” said Council Member Jack Hayman, as he endorsed the county’s request.
In addition, Bruno warned the Florida Legislature has slated a special session in December to slice another $700 million from the state’s budget, and the county may be asked to pick up more of the funding for some programs and projects, such as social services.
County Manager James Dinneen sounded even more pessimistic. Dinneen recalled stories from Ohio and other Northern states, describing “people freezing to death in the streets of cities.”
“We’re getting to the point where, if all else fails, you turn to the county,” he said. “How do we avoid the train wreck we know is coming?”
Alluding to the barrage of gloomy economic news, Dinneen added he needs the council’s help to prepare a contingency plan in case “the bottom falls out.”
Comment on this article
Commenting is closed for this article.
If you would like to contribute a letter to the editor, please click here.
Did you find this story interesting or informative? Subscribe to The DeLand-Deltona Beacon to read more stories by Al Everson, along with others from our award-winning writers. Subscribe now!
Photos - Real Estate - Newcomer's Guide - Beacon Magazines - Advertise - Local Web Sites - About Us - Beacon Archives