Metro Economic Outlook: Miami

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1 Metro Economic Outlook: Miami The Miami region is still feeling some lingering effects from the Great Recession, but job growth has improved and tourism continues to inject life into the local economy. Things have been getting better, there has been steady improvement, said Robert Cruz, chairman of the Miami-Dade College School of Business. It has all been in the private sector, though. The public sector continues to decline, and it hasn t hit bottom yet, unfortunately. A downturn in property values during the recession has reduced tax collections and resulted in government layoffs, mostly at the local and county level, Cruz said. Many property owners, particularly those with commercial holdings, have also successfully negotiated MIAMI METRO: VITAL STATS Total working age population: 3,560,998 out of a total population of 5,929,819 Number of households: 2,047,325 Consumer price index: (goods and services that cost $100 in cost $ in October 2015) Percentage of local residents with bachelor s degrees: 18.7 With graduate or professional degrees: 10.7 Student concentration: 77.2 college students per 1,000 residents Sources: Census Bureau (2014), Bureau of Labor Statistics (October 2015), American Institute for Economic Research (2014) Unemployment rate 5 5 Source: Bureau of Labor Statistics (November 2015) lower assessments after appealing their appraisals, he added. Even though the tax base is coming back with more homes sold, it is not producing as much revenue, Cruz said. The efficiency of tax collection has been diminished. Fortunately for the region which spans three counties in southeastern Florida labor force participation rates have remained steady. Sustained population growth among those aged 24 to 44 has supplanted the region s older workers that have left the work force in recent years. The Miami region s private sector now has 25,000 more jobs than it had at its pre-recession peak, Cruz said. Much of that growth has come in the professional and business services, manufacturing and construction industries. Unemployment and most CPI data updated monthly. Other data updated once annually as it becomes available.

2 With no local or state income taxes in the Miami region, and no local corporate tax, the low cost of doing business makes the region attractive for start-up companies. Mining and logging Construction Manufacturing Trade, transportation and utilities Information Financial activities Professional and business services Labor force makeup The Miami Leisure and hospitality Entrepreneurship Other services Center in the city s Government 304 downtown region, Total nonfarm 2473 for example, houses 0 1,000 2,000 3,000 roughly 20 fledgling businesses. For $300 Number in thousands per year, tenants Source: Bureau of Labor Statistics (January 2015) have unlimited access to conference space, Wi-Fi Internet connections, and copying, about 100 of the innovation center facilities around printing and scanning services. the world Microsoft s innovation center in Miami the first such facility in the for the company provides training for students and entrepreneurs in order to promote growth and create local jobs in the software industry. The Washington state-based tech giant has Tourism and international trade also continue to support the local economy. In 2014, the Miami region had a record 14.6 million overnight visitors who spent a collective $23.8 billion, according to the Greater Miami Convention and Visitors Bureau. Working age categories 342,099, 383,833, 11% 382,721, 11% 791,645, 22% 869,744, 24% 790,956, 22% Source: Census Bureau (2014) 20 to to to to to to 64 Miami s cruise industry handles more than four million travelers annually via the Port of Miami. The port also processes more than eight million tons of cargo each year, and the various shipping lines that travel along Miami s shores conduct commerce in more than 100 countries around the world. International trade and cruise industry activity combined conducted at the port supports about 207,000 jobs and represents $27 billion in economic activity annually, according to Miami-Dade County. 2

3 Employee Benefits Data 25% 2 15% 5% Employers offering consumer-driven health plans 24% 16% Employers in the Miami metro area are less likely to offer consumer-driven health plans compared with the national level, by an 8 percent margin Employers offering domestic partner benefits 58% 5 They are more likely to offer domestic partner benefits, by an 8 percent margin above the national rate. Source: SHRM Health Care Benchmarking Database (2015) Retirement Employee 401(k) participation rate % 56% The Miami metro area s workforce has a lower rate of 401(k) participation compared with the national level, by a margin of 6 percent. 2 Source: SHRM Retirement & Welfare Benefits Database (2013) 3

4 Income and Turnover Data Overall turnover rate 25% 2 15% 18% 22% The Miami metro area workforce has a higher turnover rate compared with the national level, by a margin of 4 percent. 5% Source: SHRM Human Capital Benchmarking Database (2015) $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 Median household income $53,657 $48,458 Median household income in the Miami metro area is lower than the national level, by more than $5,000 annually. $0 Source: Census Bureau (2014) Per capita income $35,000 $30,000 $25,000 $20,000 $15,000 $28,889 $27,126 Per capita income in the Miami metro area is also lower than the national level, by nearly $2,000 annually. $10,000 $5,000 $0 Source: Census Bureau (2014) 4

5 Top Management Salaries Data Median salaries, top management Top legal executive *Chief information officer **Top HR executive *Chief financial officer $400,000 $310,100 $301,000 $270,000 $230,000 $223,000 $390,000 $350,400 Median salaries for top management level employees in the Miami area are typically higher than national levels. *Florida state median data $786,000 *Chief executive officer $623,200 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 **Florida state median data, without labor relations experience Source: Towers Watson Data Services 2015 Survey Report on Top Management Compensation Project lead: Joseph Coombs, Senior Analyst, Workforce Trends, SHRM Project contributors: Alexander Alonso, Ph.D., SHRM-SCP, VP of Research; Jennifer Schramm, M. Phil., SHRM-SCP, Manager, Workforce Trends External contributors: Robert Cruz, Miami-Dade College Copy editing: Katya Scanlan, copy editor This report is published by the Society for Human Resource Management (SHRM). All content is for informational purposes only and is not to be construed as a guaranteed outcome. SHRM cannot accept responsibility for any errors or omissions or any liability resulting from the use or misuse of any such information Society for Human Resource Management. All rights reserved. Printed in the United States of America. These materials and the data contained within them are copyrighted by SHRM, another copyright holder (where noted), or are government-owned. SHRM hereby grants permission for users to copy and use these materials and the data contained within them only if proper attribution is given to SHRM (or the noted copyright holder) as the source of the material. For more information, please contact: SHRM Research Department SHRM Human Capital Database 1800 Duke Street, Alexandria, VA 22314, USA Phone: (703) Fax: (703) SHRM Compensation Data Center SHRMResearch@shrm.org Web: 5