Florida Overtakes New York in the Job Market for the First Time. Here's Why

Would you choose the Sunshine State over the Empire State?

It's official! There are now more people working in Florida than New York, according to the latest data from the Bureau of Labor Statistics (BLS). In December, the total number of people employed in Florida reached 9,578,500 -- 2,400 more than in New York. According to Bloomberg, that hasn't happened since the data started being collected in 1982.

Why people are leaving New York

The figures reflect a trend that's been developing for several years. People are quitting New York in favor of states like California, Texas, and Florida. There's no one single factor at play, but the high cost of living combined with relatively high unemployment are certainly up there.

Job-wise, New York City suffered more than other large cities due to COVID-19. It is starting to recover, but unemployment remains well above the national average. BLS data shows that New York State ranked in the bottom 10 states for unemployment in December.

In contrast, two of New York's urban areas make the top 10 in terms of living costs. Indeed, life in Manhattan costs almost double than the national average according to the latest cost of living data from the Council for Community and Economic Research. Brooklyn doesn't fare much better. There are lower cost places to live in New York, but even so, it's an expensive place to live if you also can't find work.

Is it worth moving to lower your cost of living?

According to The Ascent's research into the average American's household expenses, housing accounts for over a third of typical spending. Unfortunately, some people pay a lot more. Data from Pew Research showed that almost a quarter of renters spend 50% or more of their income on housing. If half your cash goes towards rent, there's not a lot left for other expenses, never mind putting money into a savings account or investing for the future.

That said, moving to a new state or city is easier said than done. It takes time and planning, and the move itself can be expensive. On top of deciding what neighborhood you might want to live in, you'll need to figure out things like taxes, insurance, living costs, healthcare costs, and a bunch of other things.

Here are some things to budget for:

• Taxes: Taxes can vary wildly from state to state and it's important to be prepared. Look into what income tax, sales tax, property tax, and local taxes apply. Also bear in mind that you may be on the hook for taxes in both states in the year you move.
• Moving costs: These costs depend a lot on how far you're moving, how much stuff you have, and whether you use a professional moving company. If you're moving to cut your living expenses, the more you can do yourself, the less it will cost.
• Cost of living: Have a look at groceries, gas, insurance, and other living expenses. There's no point in drastically reducing your housing costs if you end up spending even more in other aspects of your life. You may also have to change your healthcare policy as some plans won't transfer.

There are less drastic ways to reduce your costs

Moving to a new state isn't feasible for everybody, and in fairness, it is a drastic way to cut costs. Your job or kids' schools may tie you to a particular area, or you may have a network of friends and family you don't want to leave. All the same, if you feel like there's nothing left in your bank account at the end of each month, you may need to look at other ways to reduce your costs.

Start by looking at your income compared with your expenses. Look through your recent bank statements and note down what you're spending in different areas of your life. If you haven't tracked your spending before, a budgeting app might help. If there's not a lot of wiggle room between what you earn and what you spend, think about where you can cut back.

Are there subscription services you can cut, or ways you can reduce your phone or internet costs by switching providers? If your utility bills are high, think about ways you might lower your energy costs. Or could you shave a few dollars off your grocery spend by switching to a lower-cost store or using a cash back app? If you have a spare room, might you be able to rent it out? Or are there ways you can increase your income?

Depending on your financial situation, it may not be about making dramatic life changes -- like moving house. You may be able to implement some small changes that have enough of an impact on your bottom line. What matters is to ensure you spend less than you earn so that you can put the difference toward strengthening your financial foundations.