Entering 2008, there are signs that the Orlando economy is cooling. Over the past year, employment growth in the metro area has slowed from +3.8% year over year to its current pace of +2.0%. At the same time, the metropolitan area’s unemployment rate has edged higher, to 4.0% from 2.9% a year ago. Despite this evidence of moderating growth, due primarily to a collapse in new home construction, the Orlando economy is continuing to generate jobs at a faster pace than all but four of the 25 largest U.S. major metropolitan areas.