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Unemployment Rate Rises in Jacksonville Metro Area

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News Summary

The unemployment rate in Jacksonville increased from 3.5% to 3.6% in May, partly due to new college graduates entering the job market. While the region added 9,000 jobs over the year, this growth rate tied for the slowest since the pandemic. The education and health services sector showed the most significant job gains, whereas financial activities faced substantial losses. Despite these challenges, the state’s unemployment rate remained stable at 3.7%. Local authorities are urged to devise strategies to enhance employment opportunities amid this evolving landscape.

Jacksonville – The unemployment rate in the Jacksonville metropolitan area rose slightly from 3.5% in April to 3.6% in May 2025, according to recent data. This uptick is primarily attributed to the influx of new college graduates entering the job market, many of whom face challenges in securing employment.

In May, approximately 825,095 individuals were reported as employed across the Jacksonville area, reflecting a decrease of around 500 people compared to the previous month. The job growth in the region has slowed significantly, with nonfarm businesses adding only 9,000 jobs over the year, resulting in a growth rate of just 1.1%. This rate ties with the slowest growth observed in the area since the onset of the coronavirus pandemic.

Despite the overall sluggish job growth, several sectors experienced gains. The private education and health services sector led the growth with an addition of 7,300 jobs, marking a 5.6% increase compared to the previous year. In contrast, the financial activities sector faced significant job losses, shedding 5,100 jobs, which accounts for a 6.8% decrease during the same period. Additionally, the administrative and support services sector—encompassing services like waste management—also saw a decline of 2,100 jobs, reflecting a 3.8% drop.

Other sectors reported minor changes, with the manufacturing sector experiencing a slight loss of 100 jobs, representing a 0.3% decline. This mixed performance among various industries contributes to the challenging employment landscape in Jacksonville.

Despite Jacksonville’s unemployment rate rising to 3.6%, the overall unemployment rate for the state of Florida remained unchanged at 3.7% in May. The job growth rate in Jacksonville has not kept pace with the statewide average of 1.5% for the same 12-month period, highlighting regional disparities in employment trends.

In terms of localized data, Duval County saw its unemployment rate rise from 3.6% in April to 3.7% in May. Nearby Baker County also experienced an increase of 0.2 percentage points, bringing its rate up to 3.7%. Clay County’s rate rose by 0.1 point to 3.6%. Meanwhile, Nassau County’s unemployment rate held steady at 3.4%, and St. Johns County’s rate remained unchanged at 3.5%.

The Department of Commerce regularly adjusts unemployment rates in local areas to provide a clearer picture of labor market conditions. This adjustment process may explain some of the fluctuations in reported unemployment rates from month to month.

As the employment landscape evolves, with May traditionally seeing an increase in unemployment as new graduates enter the workforce, Jacksonville’s economy must navigate the challenges of job growth in various sectors. The slow pace of job creation remains a concern for local authorities and job seekers alike, emphasizing the need for targeted strategies to enhance employment opportunities in the region moving forward.