Labor Market and Economic Base

Beach County resulting in low vacancy rates and a spiraling increase in rent prices, 2) the lack of affordable rental housing production, and 3) rent prices are increasing faster than wages.

Labor Market and Economic Base

Local housing and labor markets are inextricably linked to one another. Industries are served by local housing markets that provide choices and opportunities for both current and future workers. The availability of existing supply of various housing types and price levels must be maintained to address the housing demand of the variety of occupations that constitute the local industrial base.

The labor market of Palm Beach County is largely supported by the non-durable serviceproviding industries. These industries currently comprise 90 percent of the County’s employment base. The largest industry employers include Professional and Business Services (106,300 employees), Trade, Transportation and Utilities (105,100 employees), Education and Health Services (97,500 employees) and Leisure and Hospitality (67,500 employees).

Due to the preponderance of service sector jobs, the Palm Beach County economy is sensitive to short-term market changes in the national economy. The Great Recession and the current COVID-19 pandemic have exposed this weakness — Palm Beach County and South Florida, in general, lost jobs at a dramatically faster pace than comparable metropolitan areas in the U.S. Since 2012, Palm Beach County has experienced a steady growth in employment. However, with the advent of the COVID-19 pandemic, the County has already lost 63,471 jobs through September 2020. Significantly, the job shedding has continued through October-November with an additional 7,210 unemployment claimants in Palm Beach County and an unemployment rate of 7.0 percent.

Table 4.1: Nonagricultural Employment in Florida West Palm Beach-Boca Raton-Delray Beach (Not Seasonally Adjusted)

Industry Title June June Jun 2019 to Jun 2020 2019 2020 Level Percent

Total Nonagricultural Employment

Total Private

630,100 575,200 54,900 8.7% 569,300 515,600 53,700 9.4%

Goods Producing Construction

59,200 58,100 1,100 1.9% 38,900 38,200 700 1.8%

Specialty Trade Contractors 25,900 26,100 200 0.8%

Manufacturing Service Providing

20,200 19,800 400 2.0% 570,900 517,100 53,800 9.4% Private Service Providing 510,100 457,500 52,600 10.3% Trade, Transportation, and Utilities 114,400 105,100 9,300 8.1% Wholesale Trade 23,100 21,300 1,800 7.8% Retail Trade 78,300 71,200 7,100 9.1%

Note: table continued. 38