Texas Employment is Strong Continues to Improve
Texas Employment is Strong Continues to Improve[1]
According to the US Bureau of Labor Statistics and the Texas Workforce Commission, Texas added 43,600 jobs nonagricultural jobs in May. Texas’ May nonagricultural job growth marked the largest over-the-month increase in employment out of any state in the nation and is the largest monthly gain in more than three years. This latest round of job growth keeps Texas’ seasonally adjusted unemployment rate steady at 8.3 percent as of the end of May and marks the fifth consecutive month of chartable growth.
Texas’ employment picture stands in stark contrast to national employment performance. For May, the seasonally adjusted unemployment rate for the entire nation was 9.7 percent, a full 1.4 percent higher than the rate in Texas.[2] Moreover, according to the Bureau of Labor Statistics, May saw virtually no growth in private sector employment on national average. Much of the .2 percent decrease in the national unemployment rate was do to an influx 411,000 temporary census workers.[3] In Texas, nine of the eleven major industries nine saw employment growth in May.
Texas Employment By the Numbers:[4]
124,000 - The number of jobs added in Texas since January
43,600 - The total number of nonagricultural jobs added in May
7,000 - The number of jobs added in the manufacturing sector in May, marking the first time in over three years this sector has added jobs for five consecutive months.
35 - The number of consecutive months the Texas unemployment rate has been below the national average
9 - The number of sectors that added jobs in May, out of 11 total industries.
8.3 % - The seasonally adjusted unemployment rate for Texas, well under the national rate of 9.7%
Texas Employment Growth by Sector[5]
The strongest growth in Texas employment in terms of raw numbers was in the professional and business services industry with 10,200 jobs created in May. The smallest improvement was in the education and health industry which saw an increase of 500 jobs for the month. Two sectors saw job losses for the month of May: Government lost 1,100 jobs and the information industry lost 2,900 jobs in May.
Texas is widely recognized as having a state economy primed for growth. In 2009, CNBC ranked Texas’ economy as being the best in the nation in their annual “America’s Top States for Business” rankings list.[6] Moreover, in the five years preceding 2008, Texas created 1.2 million jobs and was responsible for half of all the jobs created in the United States in 2008.[7]
Analysis and Outlook
Texas continues to show positive employment growth as 2010 progresses. Texas employment figures have consistently outperformed national employment data and the state remains among the strongest job growth environments in its region.[8] Texas boasts a competitive business environment and a tax burden well below the national average.[9] Additionally, Texas has no state income tax. These factors have combined to make Texas the most migrated to state according to The Economist magazine.[10] Texas appears to be on solid footing for continued job growth for the remainder of 2010.
Prepared by: Andrew C. Delmege, Policy Associate – Americans for Prosperity
[1] Accept where indicated, data in this section is derived from: Texas Workforce Commission. Labor Market and Career Information Department. (June 2010). Texas Labor Market Review.
[2] Bureau of Labor Statistics. “Regional and State Employment and Unemployment Summary.” (June 18, 2010). http://www.bls.gov/news.release/laus.nr0.htm.
[3] Lee, Don. (June, 2010). “Census workers boost jobs in May; unemployment at 9.7%”. Chicago Tribune. Retrieved http://www.chicagotribune.com/news/nationworld/sns-jobs-report-story,0,4597257.story.
[4] Texas Workforce Commission. Labor Market and Career Information Department. (June 2010). Texas Labor Market Review.
[5] Data in this section is derived from: Texas Workforce Commission. Labor Market and Career Information Department. (June 2010). Texas Labor Market Review.
[6] CNBC. (2009). America’s Top States for Business. CNBC.com. Retrieved from http://www.cnbc.com/id/31765926.
[7] Texas Workforce Commission (2008). Texas Workforce Commission: 2008 Annual Report. http://www.twc.state.tx.us. Retrieved from http://www.twc.state.tx.us/news/ar08.pdf
[8] Bureau of Labor Statistics. “Regional and State Employment and Unemployment Summary.” (June 18, 2010). http://www.bls.gov/news.release/laus.nr0.htm.
[9] The Tax Foundation. “Texas' State/Local Tax Burden Among Nation's Lowest”. (Accessed: June 23, 2010). http://www.taxfoundation.org/research/topic/60.html
[10] The Economist. “Texas, here we come”. (June 16, 2010). http://www.economist.com/blogs/freeexchange/2010/06/migration
