Costs rising though
Florida takes the top spot as the best place in the country to retire, has the most new business formations in the country, and now the lowest unemployment rate among the ten largest states. But rising costs march on, with the state minimum wage increasing another dollar soon and all major electric providers in the state filing for rate increases. It’s all in this week’s look at economic news around Florida.
Retire Here: Bankrate is out with its annual Best and Worst States for Retirement list and Florida is ranked number one best. The study looked at five categories: affordability, wellness, culture, weather and crime. The heaviest weighting was on affordability. Florida was top ranked in culture and diversity with 21% of the population age 65+ and “solid racial diversity and a significant LGBTQ population.” While the weather is oh so nice (second warmest average temps behind Hawaii), the high incidence of hurricanes and tornados hurt the Sunshine State’s weather ranking. Affordability has always been a big selling point for Florida retirees, “but that advantage is fading,” the study stated. “The state’s cost of living has been rising, although the tax burden remains light.” Florida ranks No. 18 in Bankrate’s affordability index. Rounding out the top five places to retire after Florida are Georgia, Michigan, Ohio and Missouri. Alaska came in last place.
Grow Here: Florida is also making top marks in several other economic indicators. According to data from the state Department of Economic Opportunity, Florida leads the nation in new business formations with 1,534,221 new businesses since January 2020, outpacing second place California by more than 250,000 new business formations. The labor force continues to grow, up a half-percent (49,000) in September over August and private sector employment grew by one-third percent (24,200). Florida also has the lowest unemployment rate among the nation’s ten largest states at 2.7%, a full point lower than the national rate of 3.7%. More people are moving to Florida than any other state in the nation.
Minimum Wage Rising: Florida’s minimum wage will increase a dollar to $11 an hour on September 30. It’s the second of five annual increases that voters approved by constitutional amendment back in 2020. The state minimum wage will eventually increase to $15 an hour on September 30, 2026 with inflation-linked increases after that.
Electric Bills Rising: As you’ve opened your monthly Florida electric bill, you’ve likely noticed that you’re paying more for electricity. The News Service of Florida reports that Florida residents and businesses will likely receive even higher bills in 2023 as utilities face increased natural gas costs. Florida Power & Light, Duke Energy Florida, and Tampa Electric Company all filed petitions this month with the state Public Service Commission detailing their expected costs in 2023. If the commission approves the utilities’ proposals, each would result in higher monthly bills in 2023.
LMA Newsletter of 9-19-22
