Nov 22, 2011

USA - Tourism drives employment recovery



Central Florida has spent 2011 slogging through a recessionary hangover on its way to adding almost 8,600 jobs during the past 12 months.

And while any job growth in this environment is worth a nod — even if it's sluggish — a look at where those positions are being created suggests the region's long-term economic well-being could use a booster shot.

Job growth here has largely been concentrated in the leisure-and-hospitality industry: the bars, restaurants, hotels and theme parks that form the core of Central Florida's economy.

It is a sector filled with young, unskilled labor willing to work for relatively little money, often without benefits. These are the folks who cook your burgers, vacuum your hotel room and buckle you into theme-park rides.

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They form an army of blue-collar laborers who shovel coal into the engine of Central Florida's tourism train. And in 2011, their numbers have risen.

During the past year, the leisure-and-hospitality sector has added about 8,000 jobs in four-county Metro Orlando. Total employment in the sector is up 4 percent compared with this time last year. Statewide, leisure-and-hospitality has gained about 40,000 jobs in the past year, an increase of about 4.2 percent.

By comparison, the region's manufacturing sector is down by 0.8 percent and construction — one of Florida's hardest-hit industries — has shrunk 4.1 percent.

Among Central Florida's 15 largest non-government employers, six are in the leisure-and-hospitality sector. They include Walt Disney Co., which has about 64,000 workers; Universal Orlando, 16,000; SeaWorld Parks, 5,600; and Orlando-based Darden Restaurants, about 6,900.

The sector accounts for more than 55 percent of all jobs reported by the region's 15 biggest companies. And it has almost single-handedly driven local job growth during the past 12 months, according to Rollins College economist Bill Seyfried.

When that sector is excluded from the mix, Metro Orlando's employment has risen by only a few hundred jobs.

"It's the fastest-growing," Seyfried said of leisure-and-hospitality, "and now it's the largest sector."

On the upside, the sector provides lots of jobs for workers with little special education or training. When the industry is thriving, it expands and hires quickly. But those positions often come with low pay and minimal benefits: On average, leisure-and-hospitality workers make a little more than $11 an hour, according to the U.S. Labor Department. Manufacturing jobs, on average, pay about twice that.

Local officials have long talked about the need to broaden Central Florida's economic base — and they have made progress. The region's growing training-simulator industry has been praised by former President Bill Clinton and now includes more than 100 companies employing about 20,000 people.

A "Medical City" is taking shape in Lake Nona, in Orlando's southeastern corner. It includes the University of Central Florida's new medical school and the Sanford-Burnham Medical Research Institute. A Nemours Children's Hospital, a VA hospital, the M.D. Anderson Cancer Center and a University of Florida Research Center are under construction.

But consider this: All told, the training-simulator industry here employs about 20,000. Disney alone has three times that number.

The leisure-and-hospitality sector accounts for about one in every five jobs in Metro Orlando, according to the Labor Department. That's up from one-in-six jobs in 2007, just before the recession set in.

Construction employment, meanwhile, has fallen to some of its lowest levels since 1996. It accounted for about 7.8 percent of all jobs in 2007 and now accounts for just 4.4 percent.

"We're actually increasing our dependence on leisure-and-hospitality," Seyfried said. "When what we'd hoped for is the opposite."

The numbers highlight how difficult it is for local elected and business leaders to change the makeup of a region's economy. They can cajole and nudge and offer incentives to attract specific businesses or nurture certain industries. But it is a long, and often frustrating journey with victories at the margins.

Jim Stratton
Orlando Sentinel



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