According to a report from The Dallas Morning News, Texas added the lowest number of jobs that it had in months, since April of 2014. Biz Journal blames an energy sector slump for the decline in jobs. Despite the fact that fewer jobs were added, the unemployment rate dropped to 4.4 percent, says an article from CBS. It was the fifth straight month of declining unemployment rates in Texas. Meanwhile, Click 2 Houston reports that the population of the Great State of Texas could as much as double by 2050.
Fewer Jobs Added in January
As the report from Biz Journals explains, “Texas added 20,100 jobs in January, well lower than December’s total of 45,700 positions. Leading job creation last month was the trade, transportation and utility sector, which added 10,900 openings, according to the Texas Workforce Commission. Professional and business services also added 4,800 jobs, information had 3,600 and leisure and hospitality tacked on 1,800. However, mining and logging jobs, which include energy services, declined 1.1 percent between December and January. The Federal Reserve Bank of Dallas has estimated that Texas could lose 125,000 energy jobs this year in response to falling crude oil prices.”
The Dallas Morning News explains, “The slower pace of job growth can almost entirely be attributed to the state’s oil industry, which lost 3,400 jobs in January — the most of any other industry. Only one other industry — “other services” — lost jobs that month (-1,200 jobs). Texas led the nation in job growth for the month of December and for all of last year, but economists were expected the state’s job growth to slow this year due to the impact of low oil prices on the economy.
As Texas’ rapid job growth slows, U.S. employment growth ramped up in the last two months. U.S. employers added more-than-expected jobs in January and February, gaining 239,000 and 295,000 jobs, respectively, the U.S. Bureau of Labor Statistics reported today. However, the nation’s oil and gas industry also was affected by the low oil prices, with a drop of 4,100 jobs in January (in oil and gas extraction, support and oil refinery jobs) and at least 1,100 job losses in February (oil and gas extraction only), according to my calculations of BLS data.Texas Workforce Commission chairman Andres Alcantar said job growth in nine of Texas’ 11 major industries in January is “a great testament to the strength and resilience of our economy and labor market.”
Unemployment Rate Still Manages to Drop
It came as a surprise that the unemployment rte in Texas still dropped despite the lowered number in added jobs for the month of January. CBS explains, “The unemployment rate in Texas fell to 4.4 percent in January, marking the fifth straight month of declines. The Texas Workforce Commission said on Friday that compares to a December jobless rate of 4.6 percent. The state added 20,100 seasonally adjusted nonfarm jobs in January for a total increase of 392,900 jobs over the year.
The greatest gains seen in January were in the industry consisting of trade, transportation and utilities. Gov. Greg Abbott says that the job numbers are a “testament” of the strength of Texas’ economy, but added there is more work to do. The Midland area had the lowest unemployment rate at 2.6 percent while the McAllen-Edinburg-Mission area had the state’s highest unemployment rate, at 8.3 percent.”
Population Continues to Grow
While unemployment drops and jobs are added, a report from the Austin American-Statesman says that the population of Texas could as much as double by 2050. That is, of course, if immigration continues to grow at the rate which it has in the last ten years. The report from Click 2 Houston shares “The analysis issued Thursday by the Office of the State Demographer projects the state’s population will be about 54.4 million if current immigration, both legal and illegal, and migration levels are sustained. The study also projects population in Texas age 14 and under would increase from 5.7 million in 2010 to 10.2 million in 2050. The 15-64 population would increase from 16.8 million to 34.7 million, and the 65 and over population would rise from 2.6 million to 9.4 million.”
The report goes on to say, “The Austin American-Statesman reports an increase in population could have broad implications for the state’s economy, quality of life, water and transportation infrastructure, schools and politics. Beginning in 2005, Texas has experienced the largest annual population growth of any state,” wrote the state demographer, Lloyd Potter. Austin has set the pace for the state. Its population grew 37 percent in the decade ending in 2010.
According to demographers, migrants tend to be younger, and can help maintain a high worker to retiree ratio. William Frey, a demographer with the Brookings Institute, said that it is unlikely that Texas will be able to maintain the growth rate is has had this century, which benefited from a strong economy that was largely unbattered by the recession. Frey also said Texas received a one-time population bump from people leaving Louisiana after Hurricane Katrina.”
The Dallas Morning News – http://bizbeatblog.dallasnews.com/2015/03/texas-added-20100-jobs-in-january-the-oil-industry-lost-3400-jobs.html/
Biz Journals- http://www.bizjournals.com/dallas/news/2015/03/06/texas-adds-fewer-jobs-in-january-due-to-energy.html
Click2 Houston http://www.click2houston.com/news/report-texas-population-could-double-by-2050/31655756