tx economy - july 2012

7/29/2019 TX Economy - July 2012

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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

A U G U S T 2 0 1 2

1 8 6 2

AT TEXAS A&M UNIVERSITY

Monthly

Reviewof the

TexasEconomy


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Monthly Review of the Texas EconomyAugust 2012

By Ali Anari and Mark G. Dotzour

The Texas economy continues to grow at a rate higher than the national average. The

state gained 226,800 nonagricultural jobs from July 2011 to July 2012, an annual growthrate of 2.2 percent compared with 1.4 percent for the United States (Table 1 and Figure1). The states nongovernment sector added 260,400 jobs, an annual growth rate of 3

percent compared with 1.8 percent for the nations private sector (Table 1).

Texas seasonally adjusted unemployment rate fell to 7.2 percent in July 2012 from 8.1percent in July 2011. The nations rate decreased from 9.1 to 8.3 percent (Table 1).

Table 2 shows Texas industries ranked by employment growth rate from July 2011 to

July 2012. Table 3 shows the relative importance of the states industries based onnumber of employees.

All Texas industries except the information industry had more jobs in July 2012 than in

July 2011, but the states government sector continues to lose jobs. The mining andlogging industry ranked first in job creation, followed by the construction industry, the

leisure and hospitality industry, and the professional and business services industry.

The mining and logging industry gained 22,800 jobs, an annual employment growth rateof 9.5 percent from July 2011 to July 2012 (Table 2 and Figure 2).

Texas construction industry gained 23,000 jobs from July 2011 to July 2012, a 4.1

percent growth rate (Table 2 and Figure 3). Job gains consisted of 7,200 jobs in the

construction of buildings industry, 11,500 jobs in the heavy and civil engineeringconstruction industry, and 4,300 jobs in specialty trade contractors.

Leisure and hospitality (arts, entertainment, recreation, accommodations and foodservices) gained 40,200 jobs from July 2011 to July 2012, an annual growth rate of 3.7

percent (Table 2 and Figure 4).

The professional and business services industry gained 49,100 jobs from July 2011 toJuly 2012, an annual growth rate of 3.7 percent (Table 2 and Figure 5). Job gains

consisted of 27,700 jobs in the administrative and support and waste management andremediation, 20,700 jobs in professional, scientific and technical services, and 700 jobs in

management of companies and enterprises.

The other services industry (repair and maintenance, personal and laundry services,religious, civic and professional organizations) gained 12,000 jobs over the year, a 3.2

percent increase (Table 2 and Figure 6).

The states transportation, warehousing and utilities industry gained 13,200 jobs over theyear, a 3.1 percent growth rate (Table 2 and Figure 7)


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Texas education and health services industry added 44,100 jobs from July 2011 to July

2012, an annual growth rate of 3.1 percent (Table 2 and Figure 8). Job gains consisted of33,500 jobs in the states health services industry and 10,600 jobs in the states education

industry.

The states manufacturing industry gained 19,500 jobs from July 2011 to July 2012, anannual growth rate of 2.3 percent (Table 2 and Figure 9). Job gains comprised 18,900

jobs in the states durable manufacturing and 600 jobs in the states nondurablemanufacturing. Major job gains in the states durable goods manufacturing industry were

in fabricated metal product manufacturing (9,300 jobs), machinery manufacturing(7,400), primary metal manufacturing (1,500), transportation equipment manufacturing

(4,900), and electric equipment, appliance and component manufacturing (500). Majorjob losses in the states durable goods manufacturing industry were in nonmetallic

mineral products (1,500), wood product manufacturing (1,100), and computer andelectronic product manufacturing (1,300). Major job gains in the states nondurable

manufacturing industry were in chemical manufacturing (1,100), petroleum and coal

products manufacturing (300), and beverage and tobacco product manufacturing (300).Major job losses in this industry were in food manufacturing (1,200), printing and relatedsupport manufacturing (1,100), and paper manufacturing (400).

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

added 12,100 jobs from July 2011 to July 2012, an annual growth rate of 1.9 percent(Table 2 and Figure 10). Job gains consisted of 10,300 jobs in the states real estate,

rental and leasing industry and 1,800 jobs in the states finance and insurance industry.

The trade industry gained 29,100 jobs from July 2011 to July 2012, a 1.7 percent increase(Table 2 and Figure 11). Job gains consisted of 13,500 in wholesale trade and 15,600 jobs

in the retail trade industry. Trade is the states largest industry after government,accounting for 15.9 percent of nonfarm employment (Table 3).

Texas information industry (internet service providers, web search portals, publishing

industries, broadcasting and telecommunications) lost 4,700 jobs from July 2011 to July2012, a 2.4 percent decline (Table 2 and Figure 12).

The states government sector lost 33,600 jobs from July 2011 to July 2012, an annual

decline rate of 1.9 percent (Table 2 and Figure 13). Government job losses consisted of3,100 in the states federal government, 21,900 in the states local government and 8,600

in state government.

Texas Metropolitan Statistical Areas

All Texas metro areas except Killeen-Temple-Fort Hood, Wichita Falls, Beaumont-PortArthur, Abilene, and Brownsville-Harlingen had more jobs in July 2012 than in July

2011 (Table 4). Texarkana ranked first in job creation followed by Odessa, CorpusChristi, Midland, and Tyler (Table 4).


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The Austin-Round Rock-San Marcos metro areas annual employment growth rate fromJuly 2011 to July 2012 was 2.9 percent, ranking it 8

th(Table 4 and Figure 14).

The Dallas-Plano-Irving metro area and the Fort Worth-Arlington metro area both posted

an annual employment growth rate of 2.1 percent in July 2012 (Table 4 and Figures 15and 16). The two metro areas ranked 14

thin employment growth rate (Table 4).

The Houston-Sugar Land-Baytown metro areas annual employment growth rate from

July 2011 to July 2012 was 3.2 percent ranking it 6th

among Texas metro areas inemployment growth rate (Table 4 and Figure 17).

The San Antonio-New Braunfels metro area had a 1.3 percent annual employment

growth rate, ranking it 16th (Table 4 and Figure 18).

The states actual unemployment rate in July 2012 was 7.5 percent. Midland had thelowest unemployment rate followed by Odessa, Amarillo, San Angelo and Abilene

(Table 5).

Table 1Texas and U.S. Labor Markets

ChangeNonfarm Employment July 2012 July 2011 Absolute Percent

Texas 10,772,300 10,545,500 226,800 2.2United States 132,868,000 131,038,000 1,830,000 1.4

Private Employment July 2012 July 2011 Absolute Percent

Texas 9,062,200 8,801,800 260,400 3.0United States 112,192,000 110,251,000 1,941,000 1.8

Actual Seasonally Adjusted

Unemployment Rate July 2012 July 2011 July 2012 July 2011Texas 7.5 8.5 7.2 8.1

United States 8.6 9.3 8.3 9.1Sources: Texas Workforce Commission and Bureau of Labor Statistics


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Table 2Texas Industries Ranked by Employment Growth Rate from July 2011 to July 2012

Change

Rank Industry July 2012 July 2011 Absolute Percent

1 Mining and Logging 263,600 240,800 22,800 9.52 Construction 589,100 566,000 23,000 4.1

3 Leisure & Hospitality 1,114,000 1,073,800 40,200 3.7

3 Professional & Business Services 1,392,100 1,343,000 49,100 3.7

5 Other Services 386,700 374,700 12,000 3.2

6 Transportation, Warehousing, Utilities 443,900 430,700 13,200 3.1

6 Education & Health Services 1,457,200 1,413,100 44,100 3.1

8 Manufacturing 860,700 841,200 19,500 2.3

9 Financial Activities 652,800 640,700 12,100 1.9

10 Trade 1,709,900 1,680,800 29,100 1.7

11 Information 192,300 197,000 4,700 2.412 Government 1,710,100 1,743,700 33,600 1.9

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

Table 3

Texas Industries and Government Shares of Employment

July JulyIndustry 2012 1990

Mining and Logging 2.4 2.3Construction 5.5 5.0

Manufacturing 8.0 13.4Trade 15.9 17.9

Transportation, Warehousing, Utilities 4.1 4.3Information 1.8 2.5

Financial Activities 6.1 6.5Professional and Business Services 12.9 9.2

Education and Health Services 13.5 9.5Leisure and Hospitality 10.3 8.7

Other Services 3.6 3.8Government Sector 15.9 16.9



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Table 4Texas Metropolitan Areas Ranked by Employment Growth Rate,

July 2011 to July 2012

Rank Metro Area Percent Growth Rate1 Texarkana 7.0

2 Odessa 6.83 Corpus Christi 4.3

4 Midland 3.85 Tyler 3.3

6 Houston-Sugar Land-Baytown 3.27 Sherman-Denison 3.0

8 Austin-Round Rock-San Marcos 2.98 Longview 2.9

8 Laredo 2.911 El Paso 2.5

11 Amarillo 2.5

13 San Angelo 2.2Texas 2.2

14 Dallas-Plano-Irving 2.1

14 Fort Worth-Arlington 2.116 San Antonio-New Braunfels 1.3

17 McAllen-Edinburg-Mission 1.218 Waco 1.1

19 Lubbock 0.419 Victoria 0.4

21 College Station-Bryan 0.222 Killeen-Temple-Fort Hood 0.0

23 Wichita Falls 0.324 Beaumont-Port Arthur 0.6

25 Abilene 0.826 Brownsville-Harlingen 3.6

Source: Texas Workforce Commission


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

Rank Metro Area Unemployment Rate, Percent

1 Midland 4.22 Odessa 4.9

3 Amarillo 5.54 San Angelo 6.1

5 Abilene 6.36 Austin-Round Rock-San Marcos 6.4

6 Victoria 6.48 Lubbock 6.5

9 Longview 6.610 College Station-Bryan 6.8

11 Corpus Christi 7.011 Texarkana 7.0

13 Wichita Falls 7.1

14 Fort Worth-Arlington 7.314 San Antonio-New Braunfels 7.316 Tyler 7.4

16 Waco 7.416 Dallas-Plano-Irving 7.4

Texas 7.5

19 Houston-Sugar Land-Baytown 7.5

20 Sherman-Denison 7.721 Laredo 7.8

22 Killeen-Temple-Fort Hood 8.323 El Paso 10.1

24 Beaumont-Port Arthur 11.425 Brownsville-Harlingen 11.6

26 McAllen-Edinburg-Mission 12.3Source: 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

2009M 01 2009M 07 2010M 01 2010M 07 2011M 01 2011M 07 2012M 01 2012M 07

Texas

U.S.

Percent

Year:Mo nth


Figure 2

Employment Growth Rates in Texas Mining and Logging Industry, 20092012

-30

-20

-10

0

10

20

2009M 01 2009M 07 2010M 01 2010M 07 2011M 01 2011M 07 2012M 01 2012M 07

Percent

Year:M onth



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Figure 3

Employment Growth Rates in Texas Construction Industry, 20092012

-20

-15

-10

-5

0

5

2009M 01 2009M 07 2010M 01 2010M 07 2011M 01 2011M 07 2012M 01 2012M 07

Percent

Year:M onth


Figure 4

Employment Growth Rates in Texas Leisure and Hospitality Industry, 20092012

-2

0

2

4

6

2009M 01 2009M 07 2010M 01 2010M 07 2011M 01 2011M 07 2012M 01 2012M 07

Percent

Year:M onth



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Figure 5Employment Growth Rates in Texas Professional and Business Services Industry, 20092012

-12

-8

-4

0

4

8

2009M 01 2009M 07 2010M 01 2010M 07 2011M 01 2011M 07 2012M 01 2012M 07

Percent

Year:M onth


Figure 6Employment Growth Rates in Texas Other Services Industry, 20092012

-2

0

2

4

6

2009M 01 2009M 07 2010M 01 2010M 07 2011M 01 2011M 07 2012M 01 2012M 07

Percent

Year:M onth



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Figure 7

Employment Growth Rates in Texas Transportation, Warehousing,

and Utilities Industry, 20092012

-8

-4

0

4

8

2009M 01 2009M 07 2010M 01 2010M 07 2011M 01 2011M 07 2012M 01 2012M 07

Percent

Year:M onth


Figure 8

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

-2

0

2

4

6

2009M 01 2009M 07 2010M 01 2010M 07 2011M 01 2011M 07 2012M 01 2012M 07

Percent

Year:M onth



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Figure 9Employment Growth Rates in Texas Manufacturing Industry, 20092012

-12

-8

-4

0

4

2009M 01 2009M 07 2010M 01 2010M 07 2011M 01 2011M 07 2012M 01 2012M 07

Percent

Year:M onth


Figure 10

Employment Growth Rates in Texas Financial Activities Industry, 20092012

-4

-2

0

2

4

2009M 01 2009M 07 2010M 01 2010M 07 2011M 01 2011M 07 2012M 01 2012M 07

Percent

Year:M onth



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Figure 11

Employment Growth Rates in Texas Trade Industry, 20092012

-6

-4

-2

0

2

4

2009M 01 2009M 07 2010M 01 2010M 07 2011M 01 2011M 07 2012M 01 2012M 07

Percent

Year:M onth


Figure 12

Employment Growth Rates in Texas Information Industry, 20092012

-8

-6

-4

-2

0

2

2009M 01 2009M 07 2010M 01 2010M 07 2011M 01 2011M 07 2012M 01 2012M 07

Percent

Year:M onth



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Figure 13

Employment Growth Rates in Texas Government Sector, 20092012

-6

-4

-2

0

2

4

6

2009M 01 2009M 07 2010M 01 2010M 07 2011M 01 2011M 07 2012M 01 2012M 07

Percent

Year:M onth


Figure 14

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

-4

-2

0

2

4

2009M 01 2009M 07 2010M 01 2010M 07 2011M 01 2011M 07 2012M 01 2012M 07

Percent

Year:M onth



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Figure 15

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

-6

-4

-2

0

2

4

2009M 01 2009M 07 2010M 01 2010M 07 2011M 01 2011M 07 2012M 01 2012M 07

Percent

Year:Month


Figure 16

Nonfarm Employment Growth Rates, Fort Worth-Arlington, 20092012

-6

-4

-2

0

2

4

2009M 01 2009M 07 2010M 01 2010M 07 2011M 01 2011M 07 2012M 01 2012M 07

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

2009M 01 2009M 07 2010M 01 2010M 07 2011M 01 2011M 07 2012M 01 2012M 07

Percent

Year:M onth


Figure 18

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

-3

-2

-1

0

1

2

2009M 01 2009M 07 2010M 01 2010M 07 2011M 01 2011M 07 2012M 01 2012M 07

Percent

Year:M onth


tx economy - july 2012

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