Feb. 07--BUNNELL -- To understand Flagler County's unemployment problem, drive through the gates of Grand Landings, a sprawling, would-be subdivision just west of Interstate 95.
Launched almost six years ago, it's a landscape of empty lots and lost opportunity: a surreal work in progress where you'll find almost no workers.
Since the economy unraveled, it's been a common scene in this county of 100,000 just north of Daytona Beach. Crushed by the housing collapse, Flagler has routinely posted some of the worst unemployment rates in the state, averaging more than 12 percent during the past five years.
In the process, it's become a cautionary tale for every Florida community that ties its economy to the appearance of new rooftops.
"We were hit pretty hard," said homebuilder Charles Rinek. "It's going to take a while before everyone's smiling again."
Not long ago, most everyone was.
Before the bust, Flagler was the fastest-growing community in the country, with new homes sprouting like crab grass. In 2004, officials issued more than 4,000 building permits. In 2005, an additional 3,300.
"The word is out, and people are moving in," crowed the local Chamber of Commerce.
But almost on cue, the market collapsed, and Flagler's construction industry went with it. In 2006, building permits fell to 1,498. In 2007, they dropped to 516. During the past five years, the slide continued.
From 2008 through 2012, officials granted just 992 building permits -- fewer than a third of the number approved during any one year of the boom.
"In June 2006, 102 permits were pulled," said Jason DeLorenzo of the Flagler Home Builders Association. "We haven't hit 100 in a single month since then."
As construction tanked, unemployment soared.
DeLorenzo's association went from 430 member companies to 150. The builders and tradesmen of Flagler were thrown out of work. But so were drivers who delivered construction materials, office staff who processed mortgages and surveyors who staked out property lines.
"Look around your house," Rinek said. "Almost everything you see -- appliances, furniture, those things -- was made by some manufacturer somewhere. They were installed by somebody."
By 2009, Flagler's annual average annual jobless rate was 14.5 percent. A year later it was 15.1 percent.
In December, the county's unemployment rate was 11.2 percent -- the highest in the state. The rate has exceeded 10 percent for 54 months in a row.
Rollins College economist Bill Seyfried said Flagler faced a double-barreled problem: One of its most important industries was contracting even while the size of its labor force continued to grow -- by about 13 percent since 2005.
"It appears that the primary reason for the relatively high unemployment rate," said Seyfried, "is employment not keeping up with the growth in the labor force."
University of Central Florida economist Sean Snaith called Flagler "the poster county for the excesses of the housing bubble."
"There's so much tied directly to construction," he said, "and there's very little to fall back on."
That hurts folks such as Jim McDonald, a locksmith who installed window and door locks on new homes during the building boom. During the past few years, that revenue stream all but dried up.
"There just aren't many calls anymore," said McDonald, a Flagler resident for 12 years. "People are hurting."
Paul Hunt sees that from his spot behind the counter at ReStore, the Habitat for Humanity thrift store in Bunnell. Bargain hunting is now "in vogue," said Hunt, especially among families coping with unemployment.
The local jobs crisis has had two other significant effects on his store. The inventory of building materials is down -- the store relies on surplus donated by homebuilders -- and the number of volunteers is up. Hunt, the store's manager, said laid-off workers have offered their services in an effort to sharpen skills and broaden their career network.
"The job reference," Hunt said, "has become almost as important as the job itself."
Despite the grim unemployment numbers, the county's housing market has shown some signs of life. There are sporadic reports of hiring, and January's 37 building permits are the highest monthly total in more than five years. Over at Grand Landings, a national builder -- KB Homes -- has bought more than a dozen lots, betting that housing is coming back.
Last week, KB employees were on site sprucing up a model-home sales office.
"Things seem to be moving forward," Rinek said. "And right now, there's nothing to suggest that'll decrease dramatically."
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