With Florida's job totals back to pre-pandemic numbers, the state's unemployment rate in December and January was 3.5%, according to a report by the state Department of Economic Opportunity.

The state initially estimated a 4.4% unemployment rate for December but dropped it to 3.5% Monday, largely because of annual U.S. Department of Labor revisions. The new numbers indicate a resurgence in most job sectors despite lingering impacts from the COVID-19 pandemic and mounting inflation.

The 3.5% rate for January reflected 364,000 people out of work from a labor force of 10.4 million. It was down from 6% in January 2021.

More importantly, the figures indicate the state has recaptured all 1.28 million jobs lost in early 2020 as the economy sputtered during the first impact of the coronavirus pandemic.

Adrienne Johnston, chief economist at the Department of Economic Opportunity, said the federal-driven revisions showed the state recovered quicker than previously reported, with the state now below the federal unemployment rate for 14 consecutive months.

"We continue to see positive growth across all industries," Johnston said. "It seems like people are highly encouraged to engage back into the labor force. So, overall, things are very positive. The outlook is looking good for Florida."

The leisure and hospitality industry, which was hit hardest by the pandemic, has recovered 88% of the jobs lost.

Meanwhile, the number of jobs in the sectors of trade, transportation and utilities, professional business services, financial activities, construction and manufacturing have at least recaptured all the jobs lost during the pandemic.

"Both manufacturing and construction have gained jobs in Florida since February 2020, whereas these sectors have not yet recovered in the rest of the country," Johnston said. "Florida has also seen strong growth and financial activities compared to the nation, which has not yet seen net job gains over this period."

The revisions also indicate the state recaptured its pre-pandemic labor force numbers in June 2021, a month earlier than previously reported, while monthly jobless rates have declined or remained steady since July 2020. The revisions also showed the peak pandemic unemployment rate in May 2020 was 13.9%, rather than a previously reported 14.2%.

"This is still the highest rate on record for the state," Johnston said.

The revisions also moved the state back below the federal jobless rate, which dropped from 3.9% in January to 3.8% in February, with the Department of Labor on March 4 estimating the nation added 678,000 jobs in February, atop the 481,000 in January and 588,000 for December.

Over the past year, Florida's labor force has grown by 3.1%, compared to a 2.2% nationally, Johnston said.

With the new numbers, the biggest job gains over the past year have come in leisure and hospitality, up 17.4%, professional and business services, up 7.2%, and trade, transportation and utilities, up 5.7%.

Construction jobs were up 2.6%, manufacturing jobs increased by 3.9%, and jobs involving education and health services grew by 2.1%.

Statewide, the lowest January unemployment rate was in Monroe County, which includes the Florida Keys, at 2.3%, followed by St. Johns County at 2.6%.

Rural Hamilton and Putnam counties held the highest rates at 5.1%.

Among the state's metropolitan statistical areas, the unemployment rate around Jacksonville was at 3.3%, with the Miami-Fort Lauderdale-West Palm Beach and the Tampa-St. Petersburg-Clearwater at 3.4% and the Orlando-Kissimmee-Sanford area at 3.8%.

Florida will update the employment numbers, reflecting mid-February conditions, on March 25.

Jim Turner reports for the News Service of Florida.

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