July 19, 2025

Jacksonville Unemployment Rate Rises to 4.2%

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News Summary

Jacksonville’s unemployment rate has increased from 3.6% in May to 4.2% in June, marking the highest level since August 2021. The rise indicates challenges in the job market amid an influx of new graduates entering the workforce. Despite some sectors showing job growth, areas like financial activities experienced significant job losses. The labor market shows more people seeking jobs than there are opportunities, highlighting the need for strategies to better support job creation in the region.

Jacksonville is experiencing a rise in its unemployment rate, climbing from 3.6% in May to 4.2% in June, as reported by the Florida Department of Commerce on July 18. This increase marks the highest unemployment rate for the Jacksonville metropolitan area since August 2021, when it reached 4.3%. The growing jobless rate highlights ongoing challenges in the labor market, as new college and high school graduates have recently entered the workforce without finding immediate employment opportunities.

The Jacksonville metropolitan area encompasses Baker, Clay, Duval, Nassau, and St. Johns counties. In June, the region’s labor force grew by nearly 4,000, bringing the total to 860,527 individuals. However, the number of employed persons decreased by almost 300 individuals, dropping to 824,796. This data indicates an unsettling trend as more people are entering the job market while fewer are securing jobs.

It is important to note that the Department of Commerce does not account for seasonal fluctuations in local labor force data, such as the influx of new graduates each spring. This lack of seasonal adjustment may be contributing to the apparent rise in unemployment as students transition from academia into the workforce.

Unemployment Rate Trends in the Region

As part of this overall rise, all five counties within the Jacksonville area witnessed significant increases in unemployment rates during June:

Duval County: rose by 0.5 percentage points to 4.2%
Clay County: reported a rate of 4.1%
Baker and St. Johns Counties: both recorded rates of 4%
Nassau County: registered a rate of 3.9%

These figures showcase a concerning trend of rising unemployment across the region, as the influx of new job seekers contributes to the overall joblessness numbers.

Job Growth Dynamics in the Jacksonville Area

Despite these rising unemployment statistics, the nonagricultural payrolls in the Jacksonville area saw an increase of 8,900 jobs from June 2024 to June 2025, marking a growth rate of 1.1%. However, this rate of growth matches the post-pandemic low observed in the previous month of May. It suggests a stagnation in job growth that could further exacerbate unemployment concerns.

The sectors driving job losses are particularly noteworthy. The financial activities sector experienced the largest decline, shedding 5,500 jobs, reflecting a 7.3% drop year-over-year. Following this, the administrative and support and waste management sector lost 2,100 jobs, marking a 3.8% decline. Additionally, the manufacturing sector saw a decrement of 100 jobs, translating to a 0.3% decline.

Job Gains in Other Sectors

Conversely, there were segments within the Jacksonville job market that demonstrated growth. The private education and health services sector achieved the most significant job gain, adding 8,600 positions, which equates to a 6.6% increase. Furthermore, communities within professional, scientific, and technical services experienced a growth of 3,100 jobs, reflecting a 5.5% increase, while construction jobs expanded by 1,400 positions, a growth rate of 2.7%.

Statewide Employment Context

On a broader scale, Florida’s statewide seasonally adjusted unemployment rate remained steady from May at 3.7%. Without seasonally adjusting for job fluctuations, Florida’s unadjusted jobless rate did experience an uptick of 0.4 percentage points, reaching 3.9% in June. Over the past year, Florida has successfully added 142,300 nonfarm jobs, indicating a solid statewide job growth rate of 1.4%.

In summary, while the Jacksonville area grapples with a rising unemployment rate, various sectors continue to show both gains and losses in employment. As more graduates enter the workforce and seek positions, the community and its leaders may need to reevaluate strategies to enhance job creation and better support the transitioning labor force.