Insights shared by the Florida Association of Professional Employer Organizations (FAPEO) on Florida’s latest labor data:

Written By Paul Hughes

This report summarizes Florida-only employment data from the most recent labor release and highlights what it means for Florida employers.

Florida labor market remains tight

  • Florida’s unemployment rate stands at 4.2%, with 466,000 unemployed individuals statewide.

  • The state’s total labor force is 11,209,000, with 10,375,600 Floridians employed in nonagricultural jobs.

Impact: A tight labor market continues to favor workers. Client companies face ongoing recruiting pressure, which increases demand for PEO support in hiring, onboarding, retention, and compliance. 

Job growth is concentrated in key sectors

Florida added jobs over the year in several core industries:

  • Education and Health Services: +49,000 jobs

  • Trade, Transportation, and Utilities: +18,300 jobs

  • Construction: +14,100 jobs

  • Government: +10,000 jobs

Impact: These sectors are consistent drivers of payroll growth, benefits enrollment, and workers’ compensation exposure. Many are heavy users of PEO services due to compliance complexity and workforce scale.

Signs of softening in business services

Some categories showed job losses over the year:

  • Professional and Business Services: -1,000 jobs

Within that category:

    • Administrative and Support Services: -5,600 jobs

    • Employment Services: -17,800 jobs

Impact: Employment services often act as a leading indicator. Declines here can signal employer caution, slower discretionary hiring, and increased focus on cost control.

What this means

  • Hiring demand remains strong in healthcare, construction, and logistics.

  • Labor remains tight, reinforcing the value of PEOs in workforce strategy and compliance.

  • Early signs of softening in staffing-related sectors suggest closer attention to client hiring plans and payroll forecasts is warranted.

Florida’s labor market continues to present both opportunity and pressure for PEOs: strong employment levels paired with rising complexity in workforce management. 

What insights or concerns do you see in the data?

Paul Hughes
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