Texas Economy Review May 2013

8/6/2019 Texas Economy Review May 2013

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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

J A N U A R Y 2 0 1 3

1 8 6 2

AT TEXAS A&M UNIVERSITY

Monthly

Reviewof the

TexasEconomy


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Monthly Review of the Texas EconomyJanuary 2013

By Ali Anari and Mark G. Dotzour

The Texas economy gained 265,500 nonagricultural jobs from December 2011 toDecember 2012, an annual growth rate of 2.5 percent compared with 1.4 percent for theUnited States (Table 1 and Figure 1). The states nongovernment sector added 258,500jobs, an annual growth rate of 2.9 percent compared with 1.7 percent for the nationsprivate sector (Table 1).

Texas seasonally adjusted unemployment rate fell to 6.1 percent in December 2012 from7.4 percent in December 2011. The nations rate decreased from 8.5 to 7.8 percent (Table1).

Table 2 shows Texas industries ranked by employment growth rate from December 2011to December 2012. Table 3 shows the relative importance of the states industries based

on number of employees.

All Texas industries except the information industry had more jobs in December 2012than in December 2011. The states construction industry ranked first in job creation,followed by the leisure and hospitality industry, professional and business services, andthe education and health services industry.

Texas construction industry added 35,600 jobs from December 2011 to December 2012,a 6.4 percent growth rate, ranking first in job creation (Table 2 and Figure 2). Job gainsconsisted of 11,700 jobs in the states construction of buildings industry, 17,500 jobs inheavy and civil engineering construction industry, and 6,400 jobs in specialty trade

contractors.

Texas leisure and hospitality industry (arts, entertainment, recreation, accommodationsand food services) gained 46,900 jobs from December 2011 to December 2012, an annualgrowth rate of 4.5 percent (Table 2 and Figure 3).

The states professional and business services industry gained 45,800 jobs fromDecember 2011 to December 2012, an annual growth rate of 3.4 percent (Table 2 andFigure 4). Job gains consisted of 38,400 jobs in the states administrative and supportservices industry and 7,800 in professional, scientific and technical services industrywhile the states management of companies and enterprises industry lost 400 jobs.

Texas education and health services industry added 47,800 jobs from December 2011 toDecember 2012, an annual growth rate of 3.3 percent (Table 2 and Figure 5). Job gainsconsisted of 47,000 jobs in the states health services industry and 800 jobs in the stateseducation industry.

The states trade industry gained 51,400 jobs from December 2011 to December 2012, a3 percent increase (Table 2 and Figure 6). Job gains consisted of 17,600 in wholesale


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trade and 33,800 jobs in the retail trade industry. Trade is the states largest industry aftergovernment, accounting for 16.2 percent of nonfarm employment (Table 3).

The other services industry (repair and maintenance, personal and laundry services,religious, civic and professional organizations) gained 10,000 jobs over the year, a 2.7percent increase (Table 2 and Figure 7).

The states mining and logging industry gained 5,400 jobs from December 2011 toDecember 2012. Since January 2012, mining employment growth rate has fallen from 18percent to 2.1 percent in December 2012 mainly due to falling crude oil prices from morethan $100 to $88 per barrel (Table 2 and Figure 8).

The states transportation, warehousing and utilities industry gained 5,600 jobs over theyear, a 1.3 percent growth rate (Table 2 and Figure 9).

Texas financial activities (finance, insurance, real estate, rental and leasing services)added 6,600 jobs from December 2011 to December 2012, an annual growth rate of one

percent (Table 2 and Figure 10). Job gains consisted of 2,600 jobs in the states realestate, rental and leasing industry and 4,000 in the states finance and insurance industry.

The states manufacturing industry gained 6,800 jobs from December 2011 to December2012, an annual growth rate of 0.8 percent (Table 2 and Figure 11). The states durablemanufacturing industry gained 10,700 jobs while the states nondurable manufacturinglost 3,900 jobs. Major job gains in the states durable goods manufacturing industry werein fabricated metal product manufacturing (7,300 jobs), machinery manufacturing(3,300), transportation equipment manufacturing (3,800), electric equipment, applianceand component manufacturing (800), and furniture and related product manufacturing(1,000). Major job losses in the states durable goods manufacturing industry were in

computer and electronic product manufacturing (3,300), nonmetallic mineral productmanufacturing (700), and wood product manufacturing (800). Major job gains in thestates nondurable manufacturing industry were in chemical manufacturing (1,900),petroleum and coal products manufacturing (600), and beverage and tobacco productmanufacturing (300). Major job losses in this industry were in food manufacturing(2,300), printing and related support manufacturing (1,400), and paper manufacturing(300).

The states government sector experienced its third month of job gains in December 2012after 19 months of job losses. The sector gained 7,000 jobs from December 2011 toDecember 2012, an annual growth rate of 0.4 percent (Table 2 and Figure 12).

Government job gains consisted of 2,300 local government jobs and 7,000 stategovernment jobs. The states federal government lost 2,300 jobs over the period.

Texas information industry (internet service providers, web search portals, publishingindustries, broadcasting and telecommunications) lost 3,400 jobs from December 2011 toDecember 2012, an annual decline rate of 1.7 percent (Table 2 and Figure 13).


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Texas Metropolitan Statistical Areas

All Texas metro areas except Sherman-Denison, Lubbock, and Brownsville-Harlingenhad more jobs in December 2012 than in December 2011 (Table 4). Austin-Round Rock-San Marcos ranked first in job creation followed by Wichita Falls, Odessa, Houston-Sugar Land-Baytown, and Fort Worth-Arlington (Table 4).

The Austin-Round Rock-San Marcos metro areas annual employment growth rate fromDecember 2011 to December 2012 was 4.3 percent (Table 4 and Figure 14).

The Dallas-Plano-Irving metro area posted an annual employment growth rate of 2.5percent in December 2012 (Table 4 and Figure 15). The metro area ranked ninth inemployment growth rate (Table 4).

The Fort Worth-Arlington metro area and the Houston-Sugar Land-Baytown metro areaposted an annual employment growth rate of 3.2 percent in December 2012 and rankedfourth among Texas metro areas in employment growth rate (Table 4 and Figures 16 and

17).

The San Antonio-New Braunfels metro area had a 2.6 percent annual employmentgrowth rate in December 2012 , ranking it eighth (Table 4 and Figure 18).

The states actual unemployment rate in December 2012 was 6 percent. Midland had thelowest unemployment rate followed by Odessa, Amarillo, and San Angelo (Table 5).

Table 1Texas and U.S. Labor Markets

Change

Nonfarm Employment Dec. 2012 Dec. 2011 Absolute PercentTexas 10,972,800 10,707,300 265,500 2.5United States 134,822,000 132,965,000 1,857,000 1.4

Private Employment Dec. 2012 Dec. 2011 Absolute PercentTexas 9,164,500 8,906,000 258,500 2.9United States 112,548,000 110,632,000 1,916,000 1.7

Actual Seasonally AdjustedUnemployment Rate Dec. 2012 Dec. 2011 Dec. 2012 Dec. 2011Texas 6.0 7.1 6.1 7.4

United States 7.6 8.3 7.8 8.5Sources: Texas Workforce Commission and Bureau of Labor Statistics


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Table 2Texas Industries and Texas Government Sector Ranked by Employment Growth Rate

from December 2011 to December 2012

Change

Rank Industry Dec. 2012 Dec. 2011 Absolute Percent1 Construction 588,600 553,000 35,600 6.42 Leisure & Hospitality 1,098,000 1,051,100 46,900 4.5

3 Professional & Business Services 1,407,300 1,361,500 45,800 3.4

4 Education & Health Services 1,496,800 1,449,000 47,800 3.35 Trade 1,774,900 1,723,500 51,400 3.0

6 Other Services 385,900 375,900 10,000 2.77 Mining and Logging 259,100 253,700 5,400 2.18 Transportation, Warehousing, Utilities 455,200 449,600 5,600 1.3

9 Financial Activities 654,200 647,600 6,600 1.0

10 Manufacturing 852,400 845,600 6,800 0.8

11 Government 1,808,300 1,801,300 7,000 0.4

12 Information 192,100 195,500 3,400 1.7Sources: Texas Workforce Commission and Real Estate Center at Texas A&M University

Table 3Texas Industries and Government Shares of Employment

December DecemberIndustry 2012 1990Mining and Logging 2.4 2.3

Construction 5.4 4.8Manufacturing 7.8 13.1Trade 16.2 18.2Transportation, Warehousing, Utilities 4.2 4.3Information 1.8 2.5Financial Activities 6.0 6.3Professional and Business Services 12.8 9.2Education and Health Services 13.6 9.6Leisure and Hospitality 10.0 8.1Other Services 3.5 3.7Government Sector 16.5 17.9Sources: Texas Workforce Commission and Real Estate Center at Texas A&M University.

Note: Components may not add to 100 due to rounding.


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Table 4Texas Metropolitan Areas Ranked by Employment Growth Rate,

December 2011 to December 2012

Rank Metro Area Percent Growth Rate1 Austin-Round Rock-San Marcos 4.3

2 Wichita Falls 3.63 Odessa 3.54 Houston-Sugar Land-Baytown 3.24 Fort Worth-Arlington 3.26 Texarkana 2.97 Midland 2.88 San Antonio-New Braunfels 2.6

Texas 2.5

9 Abilene 2.59 Dallas-Plano-Irving 2.5

11 Victoria 2.4

12 Waco 2.313 San Angelo 2.114 Tyler 1.815 Laredo 1.616 Amarillo 1.516 Killeen-Temple-Fort Hood 1.518 Corpus Christi 1.419 Beaumont-Port Arthur 1.320 El Paso 1.221 McAllen-Edinburg-Mission 0.921 Longview 0.9

23 College Station-Bryan 0.724 Sherman-Denison 0.925 Lubbock 1.426 Brownsville-Harlingen 3.4Source: Texas Workforce CommissionNote: The data are currently under review by the U.S. Bureau of Labor Statistics


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Table 5Texas Metropolitan Areas Ranked by Unemployment Rate, December 2012

Rank Metro Area Unemployment Rate, Percent1 Midland 3.12 Odessa 3.7

3 Amarillo 4.14 San Angelo 4.65 Abilene 4.75 Lubbock 4.77 Austin-Round Rock-San Marcos 5.07 College Station-Bryan 5.09 Victoria 5.2

10 Longview 5.510 Wichita Falls 5.512 Waco 5.613 Texarkana 5.7

13 Corpus Christi 5.713 Fort Worth-Arlington 5.713 San Antonio-New Braunfels 5.717 Dallas-Plano-Irving 5.9

Texas 6.0

18 Houston-Sugar Land-Baytown 6.019 Laredo 6.120 Tyler 6.221 Killeen-Temple-Fort Hood 6.622 Sherman-Denison 6.723 El Paso 8.4

24 Beaumont-Port Arthur 10.025 Brownsville-Harlingen 10.325 McAllen-Edinburg-Mission 10.3Source: Texas Workforce Commission


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Figure 1

Nonfarm Employment Growth Rates for United States and Texas, 20092012

-6

-4

-2

0

2

4

20 09 M0 1 20 09M 0 7 20 10M 0 1 20 10M 0 7 20 11M 0 1 20 11 M0 7 20 12 M0 1 20 12 M0 7

Texas

U.S.

Percent

Year:Mo nth

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

Figure 2Employment Growth Rates in Texas Construction Industry, 20092012

-20

-15

-10

-5

0

5

10

200 9M 01 2 00 9M 07 20 10 M0 1 201 0M 07 2 01 1M 01 20 11 M0 7 201 2M 01 2 01 2M 07

Percent

Year:Mon th



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Figure 3

Employment Growth Rates in Texas Leisure and Hospitality Industry, 20092012

-2

0

2

4

6

2 009 M 01 20 09 M0 7 2 01 0M 01 2 010 M 07 20 11M 0 1 2 01 1M 07 20 12 M0 1 20 12 M0 7

Percent

Year:M onth


Figure 4Employment Growth Rates in Texas Professional and Business Services Industry, 20092012

-12

-8

-4

0

4

8

200 9M 01 2 00 9M 07 20 10 M0 1 201 0M 07 2 01 1M 01 20 11 M0 7 201 2M 01 2 01 2M 07

Percent

Year:Mon th



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Figure 5

Employment Growth Rates in Texas Education and Health Services Industry, 20092012

-2

0

2

4

2 009 M 01 20 09 M0 7 2 01 0M 01 2 010 M 07 2 011 M 01 2 01 1M 07 2 01 2M 01 2 012 M 07

Percent

Year:M onth


Figure 6Employment Growth Rates in Texas Trade Industry, 20092012

-6

-4

-2

0

2

4

2 009 M 01 20 09 M0 7 2 01 0M 01 2 010 M 07 20 11M 0 1 2 01 1M 07 20 12 M0 1 20 12 M0 7

Percent

Year:M onth



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Figure 7

Employment Growth Rates in Texas Other Services Industry, 20092012

-2

0

2

4

6

20 09M 01 200 9M 07 2 01 0M 01 2 010 M 07 2 011 M 01 20 11 M0 7 2 01 2M 01 2 012 M 07

Percent

Year:M onth


Figure 8Employment Growth Rates in Texas Mining and Logging Industry, 20092012

-30

-20

-10

0

10

20

2 009 M 01 2 009 M0 7 201 0M 01 201 0M 07 2 011 M 01 20 11M 0 7 20 12M 0 1 201 2M 07

Year:Mont h

Percent



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Figure 9

Employment Growth Rates in Texas Transportation, Warehousing,and Utilities Industry, 20092012

-8

-4

0

4

8

2 009 M 01 20 09 M0 7 2 01 0M 01 2 010 M 07 20 11M 0 1 2 01 1M 07 20 12 M0 1 20 12 M0 7

Percent

Year:Mo nth


Figure 10

Employment Growth Rates in Texas Financial Activities Industry, 20092012

-4

-2

0

2

4

2 009 M 01 20 09 M0 7 2 01 0M 01 2 010 M 07 20 11M 0 1 2 01 1M 07 20 12 M0 1 20 12 M0 7

Percent

Year:M onth



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Figure 11

Employment Growth Rates in Texas Manufacturing Industry, 20092012

-12

-8

-4

0

4

2 009 M 01 2 009 M0 7 201 0M 01 201 0M 07 2 011 M 01 20 11M 0 7 20 12M 0 1 201 2M 07

Percent

Year:Mon th


Figure 12

Employment Growth Rates in Texas Government Sector, 20092012

-6

-4

-2

0

2

4

6

20 09M 01 200 9M 07 2 01 0M 01 2 010 M 07 2 011 M 01 20 11 M0 7 2 01 2M 01 2 012 M 07

Percent

Year:Mo nth



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Figure 13

Employment Growth Rates in Texas Information Industry, 20092012

-8

-6

-4

-2

0

2

2 009 M 01 20 09 M0 7 2 01 0M 01 2 010 M 07 2 011 M 01 2 01 1M 07 2 01 2M 01 2 012 M 07

Percent

Year:M onth


Figure 14Nonfarm Employment Growth Rates, Austin-Round Rock-San Marcos, 20092012

-4

-2

0

2

4

6

2 00 9M 01 2 00 9M 07 201 0M 01 2 010 M 07 2 011 M 01 2 01 1M 07 20 12 M0 1 20 12 M0 7

Percent

Year:Mo nth



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Figure 15

Nonfarm Employment Growth Rates, Dallas-Plano-Irving, 20092012

-6

-4

-2

0

2

4

2 009 M 01 20 09 M0 7 2 01 0M 01 2 010 M 07 2 011 M 01 2 01 1M 07 2 01 2M 01 2 012 M 07

Percent

Year:M onth


Figure 16Nonfarm Employment Growth Rates, Fort Worth-Arlington, 20092012

-6

-4

-2

0

2

4

2 009 M 01 20 09 M0 7 2 01 0M 01 2 010 M 07 20 11M 0 1 2 01 1M 07 20 12 M0 1 20 12 M0 7

Percent

Year:M onth



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Figure 17

Nonfarm Employment Growth Rates, Houston-Sugar Land-Baytown, 20092012

-6

-4

-2

0

2

4

2 009 M 01 20 09 M0 7 2 01 0M 01 2 010 M 07 20 11M 0 1 2 01 1M 07 20 12 M0 1 20 12 M0 7

Percent

Year:Mo nth


Figure 18Nonfarm Employment Growth Rates, San Antonio-New Braunfels, 20092012

-4

-2

0

2

4

2 009 M 01 20 09 M0 7 2 01 0M 01 2 010 M 07 20 11M 0 1 2 01 1M 07 20 12 M0 1 20 12 M0 7

Percent

Year:M onth


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