Index: Local job market stumbles, real estate strengthens
The Tallahassee Economic Index, a growth indicator created by First Franklin Financial Services, released numbers on Monday that show Tallahassee’s job market struggled during May while real estate thrived.
Overall, the index fell 4.88 points to 53.10, which follows a 4.94 point drop in April and a 7.98 point gain in March.
“The TEI experienced its second consecutive drop during the month of May. The decline is primarily due to the Initial Claims for Reemployment Assistance rising over 30 percent from the prior number in April. This is the largest 1-month, upward move for this indicator in over a year. While one month does not make a trend, we will continue to monitor this input, as it is the largest and most important in the index,” said Lance Mitchell, director of research of the TEI.
“We also saw a shift in real estate, away from new construction and towards more purchases of existing homes. New construction permits dropped over 28 percent from last month and over 40 percent from last year, while Realtor sales jumped double digits in the same time frame. Affirming the strength in the existing homes market, we saw the median sales price for existing single-family homes rise again up over 6 percent on the year. This is yet another good sign that while growth is slow, the underlying fundamentals of the local economy remain on solid footing,” Mitchell said.
Other May highlights include:
- Advertising sales jumped 96.65 percent from May 2015
- Home furniture, furnishings, and equipment sales moved up almost 17 percent from last year
- Graphic arts, printing, publishing, engraving, binding and blueprinting sales increased 11.61 percent month over month and 14.4 percent year over year.
- Pawn shop sales rose 18.61 percent year over year
- Shoe store sales fell 25.04 percent month over month
- Apparel and accessory store sales dropped 21.54 percent month over month
- Drinking places sales surged upward 20 percent MoM and 20.26 percent year over year
- Airport traffic posted a month over month gain of 6.67 percent