U.S. STARTUPS SURGE — FLORIDA DECLINES

Chart 1

Chart 1

Using data from Indeed.com the intensity of startup jobs shows a 27% growth over the last 12 months.  U.S. total jobs advertised grew to 3.5 million from 3.2 million while at the same time startup jobs also rose from 50,000 to 64,000 creating a job intensity of 2.0%.  During the same time Florida likewise saw total jobs advertised rise from 199,000 to 205,000 as startup jobs rose from 2,030 to 2,071 resulting in an increased job intensity of 1%.   Northwest Florida also saw gains but in a more erratic way (Chart1) as total jobs advertised rose from 15,000 to 18,000 while startup jobs surged from 111 to 167 for a job intensity of 0.94%. 

Based on a paper by Michael Mandel of the Progressive Policy Institute (See Innovation Index Page) it is possible to estimate the local startup ecosystem and the demand for jobs in target industries.  In this index, the United States as a whole is the baseline of one.  The relative startup friendliness is compared to the United States.  This index (Chart 2) is a real-time proxy index — not an index constructed up to a year in arears after all data is in.

By this measure, Florida as a whole ranks well below the United States benchmark with a 0.59 index value while Northwest Florida has risen to an index value of 0.69.  In the last quarter NW Florida rose from a 0.88 mark to a 0.94 index (Chart 2).


Chart 2 Innovation Index

Chart 2 Innovation Index

As a result, Florida as a whole shows a quarter to quarter index increase of 14% while NW Florida experienced a 2% increase in its index in the same period.  In Florida, only Miami-Dade and Tampa have indices well above the panhandle.  NW Florida’s nearest big city, Atlanta, surpasses the U.S. benchmark by 33% topping NW Florida’s index by 0.86.  In summary, NW Florida’s entrepreneur ecosystem strengthened slightly in the last quarter.

Chart 3 Innovation Index versus Time

Chart 3 Innovation Index versus Time