Conundrum over sales, unemployment

For about the last six months, many areas of the Gulf Coast have shown surprisingly robust growth in taxable sales, according to a recent report by the Regional Economic Research Institute at Florida Gulf Coast University in Fort Myers.

Growth in taxable sales in recent months increased from 3% to 4% compared with the same period in 2009.

But despite six months of positive growth, the rise in taxable sales hasn't made a dent in the unemployment rate, above 13% in many areas.

“Just because you're able to get more sales doesn't mean firms are adding more employees,” cautions Gary Jackson, director of the institute. For now, many companies are getting the most out of their current employees and likely increasing hours only for their part-time help.

Jackson says the economy isn't strong enough yet to generate a significant number of new jobs. “We still have a long way to go with foreclosures and financial issues,” he says. “And that is going to take some time,” he says.

For hiring to start up measurably, taxable sales need to rise at a faster clip, consumer confidence needs to increase and the real estate market has to improve, Jackson says.

But at least we're moving in the right direction.