June 18, 2021
Beacon Employment Report | Texas
Presented by Beacon Economics
Copyright © Beacon Economics LLC
HIRING CONTINUES IN TEXAS AS STATE LABOR MARKET SEES CONSIDERABLE UPTICK
Unemployment Falls But Remains Higher Than National Rate
Jobs Gained In May
In the latest numbers, Texas’ labor market continued its march towards recovery from the effects of the historic COVID-19 pandemic. Data from the Texas Workforce Commission shows that total nonfarm employment in the state increased 34,400 positions in May, a significant uptick compared to April, when just 13,000 positions were added to payrolls in the state.
Total Jobs Recovered
The latest numbers indicate that over one million jobs (1,043,500) have been recovered in Texas since the depths of the pandemic, meaning that 72% of the positons lost at the onset of the crisis have now been recovered. This compares to a 66% recovery rate in the nation as a whole over the same period. As of May 2021, there were 409,100 fewer people employed in the state’s economy compared to February 2020. Nonetheless, Texas has been among the most resilient places in the United States: there are 3.2% fewer jobs in the state compared to February 2020, while nationally, there are 5% fewer jobs.
Texas’s employment gains in May were coupled with a slight decrease in the unemployment rate, which declined to 6.5% from 6.7% in April. This does leave the state’s unemployment rate elevated relative to the national economy, where the unemployment rate stood at 5.8% in May. Prior to the pandemic, Texas’ unemployment rate was 3.7%. Texas’ labor force, however, is now just 0.9% below pre-pandemic levels compared to 2.1% in the nation overall.
“Although Texas has been relatively buoyant throughout the pandemic, the state’s labor market recovery has been choppy in 2021, with big swings in the number of jobs added from month to month,” said Taner Osman, Research Manager at Beacon Economics. “Looking ahead however, with the pandemic in decline, there are very few reasons the state’s labor market will not gather momentum over the summer.”
The Beacon Employment Report | Texas is a unique analysis of Texas’ employment numbers and trends. Each month, we link our own econometric predictions to data released by the U.S. Bureau of Labor Statistics and the Labor Market Information Division of the Texas Workforce Commission to identify important changes in employment across industries and regions. The Beacon Employment Report is also one of the few analyses that uses seasonally adjusted numbers, which are critical to revealing accurate trends and insights within data. The analysis is a sample of the kind of research available from Beacon Economics.
The contents of this report are based on information derived from carefully selected sources Beacon Economics believe are reasonable. We do not guarantee its accuracy or completeness and nothing presented here shall be construed to be a representation of such a guarantee.