Is Florida’s Economy Good? Key Factors to Consider
Evaluate the current state of Florida's economy. This in-depth analysis considers multiple dimensions to assess its overall health and outlook.
Florida’s economic landscape is dynamic, shaped by established industries and ongoing demographic shifts. This analysis will explore the state’s economic performance, primary drivers, labor market, and how population trends influence its financial trajectory. Understanding these factors provides insight into Florida’s current and future economic prospects.
Overall Economic Performance
Florida’s economy demonstrates considerable strength, positioning itself as a major contributor to the national output. In 2024, the state’s real Gross Domestic Product (GDP) reached $1.3 trillion, representing a 3.6% increase from the previous year. Florida’s GDP expanded by 4.0% annually over the five years leading up to 2025, ranking as the top state for GDP growth during that period. The state’s economic output in the first quarter of 2025 was estimated at $1.76 trillion, increasing by 1.4% from the same period in 2024, outpacing a 0.5% decline in overall U.S. GDP.
As of 2024, Florida commands the position of the fourth-largest economy in the United States, measured by its $1.705 trillion gross state product (GSP). If Florida were an independent nation, its economy would rank as the 15th largest globally by nominal GDP in 2024. The state’s fiscal framework, notably its absence of a personal income tax, relies heavily on other revenue streams, including sales tax generated through robust economic activity.
Key Economic Drivers
Tourism remains a foundational pillar of Florida’s economy. In 2023, Florida welcomed 156.9 million out-of-state visitors, with the industry generating $131 billion in visitor spending, a 5% increase over 2022. Tourism supported over 2.1 million jobs, accounting for 14% of Florida’s nonfarm employment, and contributed $36.9 billion in tax revenue in 2023.
The real estate and construction sectors play a substantial role. In 2024, the real estate, rental, and leasing industry generated $265.5 billion, making it the largest contributor to Florida’s GDP. Construction activity, driven by demand for housing and infrastructure, consistently adds to the state’s economic output. The median housing price in Florida stood at $439,000 in June 2025.
Agriculture contributes significantly to the state’s economic diversity. Florida generated approximately $9.0 billion in agricultural cash receipts in 2022, with key commodities including sugarcane, floriculture, and various miscellaneous crops. The broader agriculture, natural resources, and food industries collectively represented 1.4% of the state’s total GDP in 2022.
International trade, facilitated by Florida’s strategic port infrastructure, enhances its economic landscape. The state’s agricultural exports, for instance, generated $60.5 billion in industry output or sales revenues. Sectors such as aerospace and defense, alongside a growing financial services industry, also contribute to the state’s varied economic base. The financial sector added 5,200 new jobs in July 2025.
Labor Market Overview
In July 2025, Florida’s unemployment rate stood at 3.7%. This rate is lower than the national average of 4.2% and has consistently remained below the national figure for 57 consecutive months.
In July 2025, the state added 7,300 net payroll jobs, with 134,100 net payroll jobs added over the preceding 12 months. The private sector alone saw an increase of 118,900 jobs during the last year. Between 2020 and 2024, Florida added 950,000 jobs, positioning it second only to Texas in total job growth. Total nonfarm employment grew by 2.5% in 2023, adding 240,600 new jobs and ranking the state eighth nationally for job growth.
The labor force participation rate in Florida was 57.8% in July 2025, ranking it 47th nationally. Wage trends have been positive, with Florida workers experiencing a 27.3% increase in average earnings since 2019, placing the state among the top three nationally for wage growth. By 2022, average wages in Florida reached 91.1% of the national average, the highest proportion observed in two decades.
Population Dynamics
Florida’s population growth influences its economic trajectory, driving demand and shaping its workforce. Between 2021 and 2022, Florida’s population increased by 1.9% to 22,244,823 residents. As of July 1, 2024, the population reached 23,372,215, an 8.24% increase from July 1, 2020, making it the fastest-growing state over the last four years. Florida is currently the third-most populous state in the United States.
The state’s population expansion is primarily fueled by migration patterns. Between 2020 and 2023, all of Florida’s growth was attributed to net migration, with domestic migration accounting for 70.1% and international migration for 29.9% of the influx. Florida recorded the highest annual net income migration, attracting an average of $4.12 million per hour from other U.S. states.
The increasing population stimulates economic activity by boosting demand for housing, consumer goods, and various services. It also necessitates ongoing investment in infrastructure, including transportation, utilities, and public amenities. The demographic composition of Florida is diverse, with two-thirds of its residents born outside the state and one in five born in a foreign country.