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Texas Unemployment Rate Hits 22-Year High

AUSTIN (AP) ―

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The Texas unemployment rate hit 8 percent for the first time in 22 years as the state lost another 62,200 nonagricultural jobs in August, the Texas Workforce Commission said Friday.

The jobless rate was up from 7.9 percent in July, according to the commission. The state's unemployment rate last hit 8 percent in November 1987 during the dying days of an oil bust that ravaged the Texas economy.

Despite the rising rate, some analysts remain confident that the recession is ending.

"It's going to be a u-shaped recovery," said Jon Hockenyos of the Austin-based economic consulting firm TXP. "Obviously the labor market is still very challenged. So you'll see the unemployment rate in this range for some time."

"That doesn't mean that things are not turning around," he said, cautioning that few new job will be created in 2009. "Don't panic, but on the other hand, don't have unrealistic expectations."

Texas was still tracking well below the national unemployment rate of 9.7 percent.

Leisure, construction and manufacturing were the hardest-hit industries last month, losing a combined 35,500 jobs.

"Despite our strong Texas economic foundation, the national recession is having an adverse impact on our state," said Tom Pauken, commission chairman.

The state gained jobs in July for the first time since late last year, but that number was revised downward to 27,600 from 37,000. While most industries lost jobs in August, education and health services was a bright spot. That sector grew by 5,200 jobs, following a revised gain of 8,600 in July. It was the 11th consecutive monthly gain in that industry. The financial activities sector saw a slight increase of 600 jobs.

"Aside from job gains in financial activities and education and health services, the employment situation in most industries was tough in August," said Andres Alcantar, the commissioner representing the public.

The number of continuing claims for jobless benefits jumped to 1.4 million from 1.3 million in July. The total is nearly three times what it was in August 2008.

Unemployment rates are adjusted for seasonal trends in hiring and firing, which most economists believe gives a better picture of the job market.

Without the seasonal adjustment, the Texas unemployment rate dropped to 8.1 percent from 8.2 percent in July.

Following are the preliminary August jobless rates for local areas in Texas, with revised July numbers in parentheses. The local figures are not seasonally adjusted.

Abilene 6.1 (6.3)

Amarillo 5.6 (5.8)

Austin-Round Rock 7.2 (7.3)

Beaumont-Port Arthur 10.8 (10.6)

Brownsville-Harlingen 10.5 (10.6)

College Station-Bryan 6.4 (6.5)

Corpus Christi 7.8 (8.0)

Dallas-Plano-Irving 8.2 (8.3)

El Paso 9.6 (9.7)

Fort Worth-Arlington 8.3 (8.3)

Houston-Sugar Land-Baytown 8.4 (8.4)

Killeen-Temple-Fort Hood 7.0 (7.2)

Laredo 9.1 (9.4)

Longview 8.3 (8.5)

Lubbock 5.7 (6.1)

McAllen-Edinburg-Mission 11.4 (11.5)

Midland 6.1 (6.3)

Odessa 9.3 (9.4)

San Angelo 6.7 (6.8)

San Antonio 7.0 (7.1)

Sherman-Denison 8.5 (8.5)

Texarkana 6.4 (6.4)

Tyler 7.8 (8.1)

Victoria 7.9 (7.9)

Waco 7.3 (7.2)

Wichita Falls 7.9 (8.0)