texas economic update october 10

8/8/2019 Texas Economic Update October 10

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By Ali Anari, Research Economist

Mark G. Dotzour, Chief Economist

TRT E C H N I C A L R E P O R T

O C T O B E R 2 0 1 0

1 8 6 2

AT TEXAS A&M UNIVERSITY

MonthlyonthlyRevieweviewof thef theTexasexasEconomyconomy


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Monthly Review of the Texas Economy October 2010

By Ali Anari and Mark G. Dotzour

Texas economy added 166,600 jobs from September 2009 to September 2010, an annual

growth rate of 1.6 percent (Table 1 and Figure 1). Over the same period, the U.S.economy gained 321,000 jobs, an annual growth rate of 0.2 percent (Table 1 and Figure

1). Texas private sector is currently playing a key role in creating more jobs in Texas.The private sector posted an annual employment growth rate of 1.9 compared with 0.5

percent for the United States private sector from September 2009 to September 2010

(Table 1).

The states seasonally adjusted unemployment was 8.1 percent in September 2010, the

same rate as in September 2009, while the nations rate in September decreased from 9.8

to 9.6 percent over the same period (Table 1).

Table 2 shows Texas industries ranked by employment growth rate from September 2009to September 2010. Table 3 shows the relative importance of the states industries based

on number of employees.

All Texas industries except the trade, construction and information industries had more

jobs in September 2010 than in September 2009 (Table 2).

The states mining and logging industry ranked first in job creation and posted an annual

employment growth rate of 14.1 percent for the period from September 2009 toSeptember 2010 (Table 2 and Figure 2). The average number of active rotary rigs

increased from 379.4 in October 2009 to 687.96 in October 2010 according to Hughes

Tool Co.

The states professional and business services industry gained 48,000 jobs from

September 2009 to September 2010, an annual growth rate of 3.9 percent, and ranked

second in job creation (Table 2 and Figure 3). Job gains consisted of 47,600 jobs in thestates administrative and support services industry and 4,600 jobs in management of

companies and enterprises. The states professional, scientific and technical services

industry lost 4,200 jobs over the period.

The states education and health services industry added 47,600 jobs from September

2009 to September 2010, an annual growth rate of 3.5 percent (Table 2 and Figure 4).

The health care and social assistance industry gained 46,700 jobs while educationalservices added 900 jobs.

The states manufacturing industry gained 23,400 jobs from September 2009 to

September 2010, an annual growth rate of 2.9 percent (Table 2 and Figure 5). Durable

goods manufacturing gained 16,000 jobs while nondurable goods manufacturing added

7,400 jobs. Major job gains in the states durable goods manufacturing industry were infabricated metal product manufacturing (16,000 jobs), transportation equipment

manufacturing (3,900), and primary metal manufacturing (1,400). Major job losses in the


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states durable goods manufacturing industry were in nonmetallic mineral productmanufacturing (3,000), furniture and related product manufacturing (2,200), wood

products (600 jobs), and electric equipment, appliance, and component manufacturing

(900). Major job losses in the states nondurable manufacturing industry were in printingand related support manufacturing (3,300 jobs), plastic and rubber manufacturing (3,300

jobs), paper manufacturing (1,000 jobs) and chemical manufacturing industry (4,200

jobs). Major job gains in the states nondurable manufacturing were in foodmanufacturing (700 jobs).

The states leisure and hospitality industry (arts, entertainment, recreation,

accommodations and food services) gained 28,100 jobs from September 2009 toSeptember 2010, an annual growth rate of 2.8 percent (Table 2 and Figure 6).

The states transportation, warehousing and utilities industry gained 8,700 jobs over theyear, a 2.1 percent growth rate (Table 2 and Figure 7).

The states financial activities (finance, insurance, real estate, rental and leasing services)

gained 4,900 jobs from September 2009 to September 2010, an annual growth rate of 0.8percent (Table 2 and Figure 8). In this industry, finance and insurance gained 7,700 jobs

while real estate, rental and leasing lost 2,800 jobs.

The other services industry (repair and maintenance, personal and laundry services,

religious, civic and professional organizations) gained 2,500 jobs over the year, a 0.7

percent increase (Table 2 and Figure 9).

The states government sector added 10,900 jobs from September 2009 to September2010, an annual growth rate of 0.6 percent (Table 2 and Figure 10). Government job

gains consisted of 11,300 in local government. Over the same period the states federal

government lost 400 jobs.

The states trade industry lost 8,100 jobs from September 2009 to September 2010 (Table

2 and Figure 11). The states wholesale trade industry gained 2,900 jobs while the statesretail trade lost 11,000 jobs. Trade is the states largest industry after government,

accounting for 15.6 percent of nonfarm employment (Table 3).

The states construction industry lost 12,700 jobs from September 2009 to September

2010, a 2.2 percent rate decrease (Table 2 and Figure 12). Jobs lost consisted of 4,200

jobs in heavy and civil engineering construction, 8,000 jobs in specialty trade contractors

and 500 in construction of buildings.

The states information industry (internet service providers, web search portals,

publishing industries, broadcasting and telecommunications) lost 14,600 jobs fromSeptember 2009 to September 2010, a 7.3 percent rate decrease (Table 2 and Figure 13).


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Texas Metropolitan Statistical Areas

All Texas metro areas except Lubbock had more jobs in September 2010 than in

September 2009 (Table 4). Waco ranked first in job creation followed by Austin-RoundRock-San Marcos, Killeen-Temple-Fort Hood, College Station-Bryan, and McAllen-

Edinburg-Mission (Table 4).

The Austin-Round Rock-San Marcos metro areas annual employment growth rate from

September 2009 to September 2010 was 2.3, ranking it second in employment growth

rate (Table 4 and Figure 14).

The Dallas-Plano-Irving metro area posted an annual employment growth rate of one

percent in September 2010 (Table 4 and Figure 15). The metro area ranked 16 th in

employment growth rate (Table 4).

The Fort Worth-Arlington metro areas annual employment growth rate from September

2009 to September 2010 was 0.9, ranking it 18th

in employment growth rate (Table 4 and

Figure 16).

After 19 months of job losses, the Houston-Sugar Land-Baytown metro area came out ofrecession in September and posted an annual employment growth rate of 0.1 percent for

the period from September 2009 to September 2010. The metro area ranked 25 th among

Texas metro areas in employment growth rate (Table 4 and Figure 17).

The San Antonio-New Braunfels metro areas annual employment growth rate from

September 2009 to September 2010 was 0.7, ranking it 21st in employment growth rate(Table 4 and Figure 18).

The states actual unemployment rate in September 2010 was 7.9 percent. Midland hadthe lowest unemployment rate followed by Amarillo, Lubbock, College Station-Bryan,

and Abilene (Table 5).

Table 1Texas and U.S. Labor Markets

Change

Nonfarm Employment Sep. 2010 Sep. 2009 Absolute PercentTexas 10,381,600 10,215,000 166,600 1.6

United States 130,564,000 130,243,000 321,000 0.2

Private Employment Sep. 2010 Sep. 2009 Absolute Percent

Texas 8,563,900 8,408,200 155,700 1.9United States 108,510,000 107, 964,000 546,000 0.5

Actual Seasonally Adjusted

Unemployment Rate Sep. 2010 Sep. 2009 Sep. 2010 Sep. 2009

Texas 7.9 8.1 8.1 8.1United States 9.2 9.5 9.6 9.8

Sources: Texas Workforce Commission and Bureau of Labor Statistics


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Table 2Texas Industries Ranked by Employment Growth Rate from September 2009 to September 2010

Change

Rank Industry Sep . 2010 Sep . 2009 Absolute Percent

1 Mining and Logging 225,900 198,000 27,900 14.12 Professional & Business Services 1,279,200 1,231,200 48,000 3.9

3 Education & Health Services 1,395,200 1,347,600 47,600 3.5

4 Manufacturing 843,700 820,300 23,400 2.9

5 Leisure & Hospitality 1,032,100 1,040,000 28,100 2.8

6 Transportation, Warehousing, Utilities 422,700 414,000 8,700 2.1

7 Financial Activities 629,400 624,500 4,900 0.8

8 Other Services 362,300 359,800 2,500 0.7

9 Government 1,817,700 1,806,800 10,900 0.6

10 Trade 1,618,900 1,627,000 8,100 0.5

11 Construction 568,300 581,000 12,700 2.2

12 Information 186,200 200,800 14,600 7.3

Sources: Texas Workforce Commission and Real Estate Center at Texas A&MUniversity

Table 3

Texas Industries and Government Shares of Employment

September September

Industry 2010 1990Mining and logging 2.1 2.3

Construction 5.5 5.0Manufacturing 8.1 13.3Trade 15.6 17.8

Transportation, Warehousing, Utilities 4.1 4.3

Information 1.8 2.5Financial Activities 6.1 6.4

Professional and Business Services 12.3 9.2

Education and Health Services 13.4 9.6

Leisure and Hospitality 9.9 8.4Other Services 3.5 3.7

Government Sector 17.5 17.5

Sources: Texas Workforce Commission and Real Estate Center at Texas A&MUniversity


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Table 4Texas Metropolitan Areas Ranked by Employment Growth Rate,

September 2009 to September 2010

Rank Metro Area Percent Growth Rate

1 Waco 2.4

2 Austin-Round Rock-San Marcos 2.32 Killeen-Temple-Fort Hood 2.3

4 College Station-Bryan 2.0

4 McAllen-Edinburg-Mission 2.0

6 Texarkana 1.87 Laredo 1.7

7 Amarillo 1.7

9 San Angelo 1.69 Odessa 1.6

Texas 1.6

11 Wichita Falls 1.4

12 Longview 1.313 Victoria 1.2

14 Tyler 1.114 Brownsville-Harlingen 1.1

16 Dallas-Plano-Irving 1.0

16 Beaumont-Port Arthur 1.0

18 Fort Worth-Arlington 0.918 Corpus Christi 0.9

20 Abilene 0.821 Sherman-Denison 0.7

21 San Antonio-New Braunfels 0.7

23 El Paso 0.324 Midland 0.2

25 Houston-Sugar Land-Baytown 0.1

26 Lubbock -0.2Source: Texas Workforce Commission


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Table 5Texas Metropolitan Areas Ranked by Unemployment Rate, September 2010

Rank Metro Area Unemployment Rate, Percent1 Midland 5.1

2 Amarillo 5.3

3 Lubbock 5.84 College Station-Bryan 5.9

5 Abilene 6.2

5 San Angelo 6.2

7 Austin-Round Rock-San Marcos 6.87 Waco 6.8

9 Longview 7.1

9 Texarkana 7.111 San Antonio-New Braunfels 7.2

12 Tyler 7.3

12 Victoria 7.3

12 Wichita Falls 7.315 Odessa 7.4

16 Killeen-Temple-Fort Hood 7.517 Corpus Christi 7.9

17 Fort Worth-Arlington 7.9

17 Dallas-Plano-Irving 7.9

Texas 7.9

20 Laredo 8.1

20 Sherman-Denison 8.122 Houston-Sugar Land-Baytown 8.2

23 El Paso 9.7

24 Beaumont-Port Arthur 10.425 Brownsville-Harlingen 10.9

26 McAllen-Edinburg-Mission 11.2

Source: Texas Workforce Commission


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Figure 1Nonfarm Employment Growth Rates for United States and Texas, 20072010

-6

-4

-2

0

2

4

2 00 7M0 1 2 00 7M0 7 2 00 8M 01 2 00 8M0 7 2 00 9M0 1 2 00 9M0 7 2 01 0M0 1 2 01 0M0 7

Texas

U.S.

Percent

Year:Month

Sources: Texas Workforce Commission and Real Estate Center at Texas A&M University

Figure 2

Employment Growth Rates in Texas Mining and Logging Industry, 20072010

-20

-15

-10

-5

0

5

10

15

2 00 7M0 1 2 00 7M0 7 2 00 8M0 1 2 00 8M0 7 2 00 9M0 1 2 00 9M0 7 2 01 0M0 1 2 01 0M0 7

Percent

Year:Month



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Figure 3Employment Growth Rates in Texas Professional and Business Services Industry, 20072010

-10

-8

-6

-4

-2

0

2

4

6

2007M01 2007M07 2008M01 2008M07 2009M01 2009M07 2010M01 2010M07

Percent

Year:Month


Figure 4

Employment Growth Rates in Texas Education and Health Services Industry, 20072010

-1

0

1

2

3

4

5

6

2 00 7M 01 2 00 7M 07 2 00 8M0 1 2 00 8M0 7 2 00 9M0 1 2 00 9M 07 2 01 0M0 1 2 01 0M0 7

Percent

Year:Month



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Figure 5Employment Growth Rates in Texas Manufacturing Industry, 20072010

-12

-10

-8

-6

-4

-2

0

2

4

2007M01 2007M07 2008M01 2008M07 2009M01 2009M07 2010M01 2010M07

Percent

Year:Month


Figure 6

Employment Growth Rates in Texas Leisure and Hospitality Industry, 20072010

-1

0

1

2

3

4

5

2 00 7M 01 2 00 7M 07 2 00 8M0 1 2 00 8M0 7 2 00 9M0 1 2 00 9M 07 2 01 0M0 1 2 01 0M0 7

Percent

Year:Month



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Figure 7Employment Growth Rates in Texas Transportation, Warehousing, and Utilities Industry,

20072010

-8

-6

-4

-2

0

2

4

6

2 00 7M 01 2 00 7M 07 2 00 8M0 1 2 00 8M0 7 2 00 9M0 1 2 00 9M 07 2 01 0M0 1 2 01 0M0 7

Percent

Year:Month


Figure 8

Employment Growth Rates in Texas Financial Activities Industry, 20072010

-4

-3

-2

-1

0

1

2

3

4

2 00 7M 01 2 00 7M 07 2 00 8M0 1 2 00 8M0 7 2 00 9M0 1 2 00 9M 07 2 01 0M0 1 2 01 0M0 7

Percent

Year:Month



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Figure 9Employment Growth Rates in Texas Other Services Industry, 20072010

-3

-2

-1

0

1

2

3

4

2007M01 2007M07 2008M01 2008M07 2009M01 2009M07 2010M01 2010M07

Percent

Year:Month


Figure 10

Employment Growth Rates in Texas Government Sector, 20072010

-1

0

1

2

3

4

2 00 7M 01 2 00 7M 07 2 00 8M0 1 2 00 8M0 7 2 00 9M0 1 2 00 9M 07 2 01 0M0 1 2 01 0M0 7

Year:Month

Percent



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Figure 11Employment Growth Rates in Texas Trade Industry, 20072010

-5

-4

-3

-2

-1

0

1

2

3

4

2007M01 2007M07 2008M01 2008M07 2009M01 2009M07 2010M01 2010M07

Percent

Year:Month


Figure 12Employment Growth Rates in Texas Construction Industry, 20072010

-20

-15

-10

-5

0

5

10

2 00 7M0 1 2 00 7M0 7 2 00 8M0 1 2 00 8M0 7 2 00 9M0 1 2 00 9M0 7 2 01 0M0 1 2 01 0M0 7

Percent

Year:Month



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Figure 13Employment Growth Rates in Texas Information Industry, 20072010

-8

-7

-6

-5

-4

-3

-2

-1

0

1

2007M01 2007M07 2008M01 2008M07 2009M01 2009M07 2010M01 2010M07

Percent

Year:Month


Figure 14Nonfarm Employment Growth Rates, Austin-Round Rock, 20072010

-4

-2

0

2

4

6

2 00 7M 01 2 00 7M 07 2 00 8M0 1 2 00 8M0 7 2 00 9M0 1 2 00 9M 07 2 01 0M0 1 2 01 0M0 7

Percent

Year:Month



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Figure 15Nonfarm Employment Growth Rates, Dallas-Plano-Irving, 20072010

-6

-4

-2

0

2

4

2007M01 2007M07 2008M01 2008M07 2009M01 2009M07 2010M01 2010M07

Percent

Year:Month


Figure 16

Nonfarm Employment Growth Rates, Fort Worth-Arlington, 20072010

-5

-4

-3

-2

-1

0

1

2

3

4

2007M01 2007M07 2008M01 2008M07 2009M01 2009M07 2010M01 2010M07

Percent

Year:Month



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Figure 17Nonfarm Employment Growth Rates, Houston-Sugar Land-Baytown, 20072010

-6

-4

-2

0

2

4

6

2 00 7M 01 2 00 7M 07 2 00 8M0 1 2 00 8M0 7 2 00 9M0 1 2 00 9M 07 2 01 0M0 1 2 01 0M0 7

Percent

Year:Month


Figure 18Nonfarm Employment Growth Rates, San Antonio-New Braunfels, 20072010

-3

-2

-1

0

1

2

3

4

2 00 7M 01 2 00 7M 07 2 00 8M0 1 2 00 8M0 7 2 00 9M0 1 2 00 9M 07 2 01 0M0 1 2 01 0M0 7

Percent

Year:Month


texas economic update october 10

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