Florida workers have seen an increase in their wages in the aftermath of the COVID-19 pandemic, which pushed the average salary in the state closer to the national average, as a new report assembled by state economists shows.
Florida — which relies heavily on the tourism and hospitality industries — has routinely seen a noticeable gap between the average annual wage and the national average. For many years, the average worker in the state earned about 87% of the national average.
But the Office of Economic and Demographic Research reported this past week that the gap has shrunk in the past two years. Final data from 2022 showed that Florida wages are now 91.1% of the national average, the highest they have been in the past two decades, according to the latest Florida economic overview put out by EDR.
"Based on conference projections of average annual wage growth of 3.3% or above each year — following 4.2% in the current year and greater than projected inflation in all years — the higher wages are likely here to stay," the EDR report states.
Wages have increased after the pandemic while unemployment in the state has dropped. The report notes that unemployment dropped to an average of 2.7% over the 2022-23 fiscal year, close to the lowest level recorded "in modern times." Unemployment fell to 2.4% in the first half of 2006.
The December unemployment rate in the state was 3%, and economists project it will begin to drift back up to as high as 4.3% in the 2026-27 fiscal year.
The numbers are coming out amid a contentious debate about Florida's labor market in the state Legislature. Bills are moving that would remove current restrictions on how long and when teenagers can work and allow some teenagers to work on residential construction projects.
State economists also looked at data connected to Florida's economy, including gross domestic product growth, personal income changes, population growth and continued growth in tourism.
EDR states that because of continued wage growth, personal income will rise 6.3% in the current fiscal year and 6.4% in the 2024-2025 fiscal year.
State economists also looked at the state's housing market and reported a drop in single-home sales in 2023 while interest rates were raised.
But that has not translated into a drop in overall prices. EDR reported that the median price of homes in Florida has exceeded the national average for nearly every month since December 2021. Economists note that the state's median price of $420,000 is a record high.
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