June 2011 Texas Economy

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By Ali Anari, Research Economist

Mark G. Dotzour, Chief Economist

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

J U L Y 2 0 1 1

1 8 6 2

AT TEXAS A&M UNIVERSITY

Monthly

Reviewof the

TexasEconomy



Monthly Review of the Texas Economy — July 2011

By Ali Anari and Mark G. Dotzour

Texas, aided by a robust private sector, gained 225,200 nonfarm jobs from June 2010 to

June 2011, an annual growth rate of 2.2 percent compared with 0.9 percent for the United

States. The state’s private sector added 251,900 jobs, an annual growth rate of 3 percentcompared with 1.7 percent for the nation’s private sector (Table 1 and Figure 1).

Texas’ seasonally adjusted unemployment rate increased to 8.2 percent in June 2011from 8.1 in June 2010. The nation’s rate decreased from 9.5 to 9.2 percent (Table 1).

Table 2 shows Texas industries ranked by employment growth rate from June 2010 to

June 2011. Table 3 shows the relative importance of the state’s industries based onnumber of employees.

All Texas industries except the information industry and the state’s government sector

had more jobs in June 2011 than in June 2010 (Table 2).

The state’s mining and logging industry ranked first in job creation and posted an annualemployment growth rate of 16.8 percent from June 2010 to June 2011 (Table 2 and

Figure 2). The average number of active rotary rigs increased from 700.9 in July 2010 to887.2 in July 2011 according to Hughes Tool Co.

The state’s construction industry ranked second in job creation, adding 30,900 jobs from

June 2010 to June 2011, a 5.4 percent rate increase (Table 2 and Figure 3). Job gainsconsisted of 5,500 in construction of buildings, 11,600 in heavy and civil engineering

construction, and 13,800 in specialty trade contractors.

The state’s professional and business services industry gained 57,200 jobs from June2010 to June 2011, an annual growth rate of 4.5 percent (Table 2 and Figure 4). Job gains

consisted of 48,700 jobs in the state’s administrative and support services industry, and8,800 jobs in professional, scientific and technical services industry. The state’s

management of companies and enterprises industry lost 300 jobs during the period.

The state’s leisure and hospitality industry (arts, entertainment, recreation,accommodations and food services) gained 31,200 jobs from June 2010 to June 2011, an

annual growth rate of 3 percent (Table 2 and Figure 5).

The state’s education and health services industry added 34,600 jobs from June 2010 toJune 2011, an annual growth rate of 2.5 percent (Table 2 and Figure 6). The state’s health

services industry gained 39,300 jobs while the state’s education industry lost 4,700 jobs.

The state’s manufacturing industry gained 20,500 jobs from June 2010 to June 2011, anannual growth rate of 2.5 percent (Table 2 and Figure 7). All job gains were in the state’s

durable goods manufacturing. Major job gains in the state’s durable goods manufacturingindustry were in fabricated metal product manufacturing (9,200 jobs), machinery



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manufacturing (10,100), computer and electronic product manufacturing (2,300),transportation equipment manufacturing (3,000), and primary metal manufacturing

(1,300). Major job losses in the state’s durable goods manufacturing industry were innonmetallic mineral product manufacturing (2,100), furniture and related product

manufacturing (600), electric equipment, appliance, and component manufacturing (700),and wood product manufacturing (1,000). Major job losses in the state’s nondurable

manufacturing industry were in printing and related support manufacturing (1,400), petroleum and coal products manufacturing (500), plastic and rubber manufacturing

(300), paper manufacturing (400) and chemical manufacturing industry (900).

The state’s transportation, warehousing and utilities industry gained 9,800 jobs over theyear, a 2.4 percent growth rate (Table 2 and Figure 8).

The state’s trade industry gained 32,700 jobs from June 2010 to June 2011, a 2 percent

increase (Table 2 and Figure 9). Job gains consisted of 14,000 in the wholesale trade and18,700 jobs in the retail trade industry. Trade is the state’s largest industry after

government, accounting for 15.7 percent of nonfarm employment (Table 3).

The other services industry (repair and maintenance, personal and laundry services,religious, civic and professional organizations) gained 5,600 jobs over the year, a 1.5

percent increase (Table 2 and Figure 10).

The state’s financial activities (finance, insurance, real estate, rental and leasing services)added 4,400 jobs from June 2010 to June 2011, an annual growth rate of 0.7 percent

(Table 2 and Figure 11). Job gains consisted of 2,300 jobs in the state’s real estate, rentaland leasing industry and 2,100 in the state’s finance and insurance industry.

The state’s government sector lost 26,700 jobs from June 2010 to June 2011, an annual

decline rate of 1.4 percent (Table 2 and Figure 12). Government job losses consisted of 3,800 in state government and 31,300 in the state’s federal government. The state’s local

government gained 8,400 jobs over the same period.

The state’s information industry (internet service providers, web search portals, publishing industries, broadcasting and telecommunications) lost 9,800 jobs from June

2010 to June 2011, a 5 percent rate decrease (Table 2 and Figure 13).

Texas Metropolitan Statistical Areas

Five Texas metro areas (Killeen-Temple-Fort Hood, Wichita Falls, San Angelo,

Brownsville-Harlingen and Abilene) had fewer jobs in June 2011 than in June 2010(Table 4). Longview ranked first in job creation, followed by Odessa, Dallas-Plano-Irving, Laredo, College Station-Bryan, Midland, and Corpus Christi (Table 4).

The Austin-Round Rock-San Marcos metro area’s annual employment growth rate from

June 2010 to June 2011 was 1.2 percent, ranking it 16th

(Table 4 and Figure 14).



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The Dallas-Plano-Irving metro area posted an annual employment growth rate of 2.4 percent in June 2011 (Table 4 and Figure 15). The metro area ranked third in employment

growth rate (Table 4).

The Fort Worth-Arlington metro area’s annual employment growth rate from June 2010to June 2011 was 1.7 percent, ranking it 11

th(Table 4 and Figure 16).

The Houston-Sugar Land-Baytown metro area posted an annual employment growth rate

of 2 percent for the period and ranked 9th

among Texas metro areas in employmentgrowth rate (Table 4 and Figure 17).

The San Antonio-New Braunfels metro area had a 1.4 percent annual employment

growth rate, ranking it 14th (Table 4 and Figure 18).

The state’s actual unemployment rate in June 2011 was 8.8 percent. Midland had thelowest unemployment rate followed by Amarillo, Odessa, San Angelo, and College

Station-Bryan (Table 5).

Table 1Texas and U.S. Labor Markets

Change Nonfarm Employment June 2011 June 2010 Absolute Percent

Texas 10,623,600 10,398,400 225,200 2.2United States 132,079,000 130,908,000 1,171,000 0.9

Private Employment June 2011 June 2010 Absolute Percent

Texas 8,772,900 8,521,000 251,900 3.0United States 110,037,000 108,178,000 1,859,000 1.7

Actual Seasonally Adjusted

Unemployment Rate June 2011 June 2010 June 2011 June 2010Texas 8.8 8.4 8.2 8.1

United States 9.3 9.6 9.2 9.5Sources: Texas Workforce Commission and Bureau of Labor Statistics



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Table 2Texas Industries Ranked by Employment Growth Rate from June 2010 to June 2011

Change

Rank Industry June 2011 June 2010 Absolute Percent

1 Mining and Logging 241,700 206,900 34,800 16.82 Construction 599,300 568,400 30,900 5.4

3 Professional & Business Services 1,332,300 1,275,100 57,200 4.5

4 Leisure & Hospitality 1,067,600 1,036,400 31,200 3.0

5 Education & Health Services 1,420,600 1,386,000 34,600 2.5

5 Manufacturing 831,500 811,000 20,500 2.5

7 Transportation, Warehousing, Utilities 427,100 417,300 9,800 2.4

8 Trade 1,663,300 1,630,600 32,700 2.0

9 Other Services 371,700 366,100 5,600 1.5

10 Financial Activities 630,200 625,800 4,400 0.7

11 Government 1,850,700 1,877,400 –26,700 –1.4

12 Information 187,600 197,400 –9,800 –5.0

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

Table 3

Texas Industries’ and Government Shares of Employment

June JuneIndustry 2011 1990

Mining and Logging 2.8 2.8Construction 5.6 5.0

Manufacturing 7.8 13.3Trade 15.7 17.8

Transportation, Warehousing, Utilities 4.0 4.2Information 1.8 2.5

Financial Activities 5.9 6.5Professional and Business Services 12.5 9.1

Education and Health Services 13.4 9.4Leisure and Hospitality 10.0 8.6

Other Services 3.5 3.7Government Sector 17.5 17.4

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

University



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Table 4Texas Metropolitan Areas Ranked by Employment Growth Rate,

June 2010 to June 2011

Rank Metro Area Percent Growth Rate1 Longview 4.2

2 Odessa 3.53 Dallas-Plano-Irving 2.4

3 Laredo 2.43 College Station-Bryan 2.4

6 Midland 2.36 Corpus Christi 2.3

Texas 2.2

8 Victoria 2.2

9 Houston-Sugar Land-Baytown 2.09 Lubbock 2.0

11 Fort Worth-Arlington 1.7

12 Waco 1.613 Beaumont-Port Arthur 1.514 San Antonio-New Braunfels 1.4

15 McAllen-Edinburg-Mission 1.316 Austin-Round Rock-San Marcos 1.2

17 Amarillo 1.118 El Paso 0.8

19 Sherman-Denison 0.520 Tyler 0.4

21 Texarkana 0.022 Killeen-Temple-Fort Hood –0.3

23 Wichita Falls –1.424 San Angelo –1.6

25 Brownsville-Harlingen –1.726 Abilene –3.7

Source: Texas Workforce Commission



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Table 5Texas Metropolitan Areas Ranked by Unemployment Rate, June 2011

Rank Metro Area Unemployment Rate, Percent

1 Midland 5.22 Amarillo 6.4

3 Odessa 6.94 San Angelo 7.2

5 College Station-Bryan 7.35 Lubbock 7.3

7 Longview 7.48 Abilene 7.6

8 Austin-Round Rock-San Marcos 7.610 Victoria 7.7

11 San Antonio-New Braunfels 8.111 Texarkana 8.1

13 Tyler 8.2

13 Wichita Falls 8.215 Waco 8.416 Corpus Christi 8.6

16 Fort Worth-Arlington 8.618 Dallas-Plano-Irving 8.7

Texas 8.8

19 Killeen-Temple-Fort Hood 8.9

20 Houston-Sugar Land-Baytown 9.020 Laredo 9.0

22 Sherman-Denison 9.223 El Paso 10.9

24 Beaumont-Port Arthur 11.725 Brownsville-Harlingen 12.9

26 McAllen-Edinburg-Mission 13.0Source: Texas Workforce Commission



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Figure 1 Nonfarm Employment Growth Rates for United States and Texas, 2008–2011

-6

-4

-2

0

2

4

2008M01 2008M07 2009M01 2009M07 2010M01 2010M07 2011M01 2011M07

Texas

U.S.

Percent

Year:Month


Figure 2

Employment Growth Rates in Texas Mining and Logging Industry, 2008–2011

-30

-20

-10

0

10

20

2008M01 2008M07 2009M01 2009M07 2010M01 2010M07 2011M01 2011M07

Percent

Year:Month




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Figure 3Employment Growth Rates in Texas Construction Industry, 2008–2011

-10

0

10

2008M01 2008M07 2009M01 2009M07 2010M01 2010M07 2011M01 2011M07

Percent

Year:Month


Figure 4Employment Growth Rates in Texas Professional and Business Services Industry, 2008–2011

-12

-8

-4

0

4

8

2008M01 2008M07 2009M01 2009M07 2010M01 2010M07 2011M01 2011M07

Percent

Year:Month




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Figure 5Employment Growth Rates in Texas Leisure and Hospitality Industry, 2008–2011

-2

0

2

4

6

2008M01 2008M07 2009M01 2009M07 2010M01 2010M07 2011M01 2011M07

Percent

Year:Month

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

Figure 6

Employment Growth Rates in Texas Education and Health Services Industry, 2008–2011

-2

0

2

4

6

2008M01 2008M07 2009M01 2009M07 2010M01 2010M07 2011M01 2011M07

Percent

Year:Month




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Figure 7Employment Growth Rates in Texas Manufacturing Industry, 2008–2011

-10

-5

0

5

2008M01 2008M07 2009M01 2009M07 2010M01 2010M07 2011M01 2011M07

Percent

Year:Month

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

Figure 8Employment Growth Rates in Texas Transportation, Warehousing, and

Utilities Industry, 2008–2011

-8

-6

-4

-2

0

2

4

2008M01 2008M07 2009M01 2009M07 2010M01 2010M07 2011M01 2011M07

Percent

Year:Month




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Figure 9

Employment Growth Rates in Texas Trade Industry, 2008–2011

-6

-4

-2

0

2

4

2008M01 2008M07 2009M01 2009M07 2010M01 2010M07 2011M01 2011M07

Percent

Year:Month


Figure 10Employment Growth Rates in Texas Other Services Industry, 2008–2011

-2

0

2

4

2008M01 2008M07 2009M01 2009M07 2010M01 2010M07 2011M01 2011M07

Percent

Year:Month




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Figure 11Employment Growth Rates in Texas Financial Activities Industry, 2008–2011

-4

-2

0

2

2008M01 2008M07 2009M01 2009M07 2010M01 2010M07 2011M01 2011M07

Percent

Year:Month


Figure 12Employment Growth Rates in Texas Government Sector, 2008–2011

-4

-2

0

2

4

6

2008M01 2008M07 2009M01 2009M07 2010M01 2010M07 2011M01 2011M07

Percent

Year:Month




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Figure 13

Employment Growth Rates in Texas Information Industry, 2008–2011

-8

-4

0

4

2008M01 2008M07 2009M01 2009M07 2010M01 2010M07 2011M01 2011M07

Percent

Year:Month


Figure 14 Nonfarm Employment Growth Rates, Austin-Round Rock-San Marcos, 2008–2011

-4

-2

0

2

4

6

2008M01 2008M07 2009M01 2009M07 2010M01 2010M07 2011M01 2011M07

Percent

Year:Month




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Figure 15 Nonfarm Employment Growth Rates, Dallas-Plano-Irving, 2008–2011

-6

-4

-2

0

2

4

2008M01 2008M07 2009M01 2009M07 2010M01 2010M07 2011M01 2011M07

Percent

Year:Month


Figure 16

Nonfarm Employment Growth Rates, Fort Worth-Arlington, 2008–2011

-6

-4

-2

0

2

4

2008M01 2008M07 2009M01 2009M07 2010M01 2010M07 2011M01 2011M07

Percent

Year:Month




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Figure 17

Nonfarm Employment Growth Rates, Houston-Sugar Land-Baytown, 2008–2011

-6

-4

-2

0

2

4

2008M01 2008M07 2009M01 2009M07 2010M01 2010M07 2011M01 2011M07

Percent

Year:Month


Figure 18 Nonfarm Employment Growth Rates, San Antonio-New Braunfels, 2008–2011

-4

-2

0

2

4

2008M01 2008M07 2009M01 2009M07 2010M01 2010M07 2011M01 2011M07

Percent

Year:Month


June 2011 Texas Economy

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