Aug 21, 2009 2:56 pm US/Central
Texas Unemployment Near 8 Percent, But Jobs Grow
AUSTIN (AP) ―
The unemployment rate in Texas is on the brink of 8 percent, though the state added jobs in July for the first time since late last year, the Texas Workforce Commission said Friday.
The jobless rate jumped to 7.9 percent from 7.5 percent in June while the number of jobs rose by 37,000 compared to last month. The job increase was the first since November when Texas was bouncing back from Hurricane Ike, which struck Sept. 13.
"It's pretty clear that the recession is bottoming out," said Jon Hockenyos of the Austin-based economic consulting firm TXP. "A lot of times in that environment you can see what looks like a contradiction."
Texas hasn't seen 8 percent unemployment since November 1987, the dying days of an oil bust that ravaged the state's economy. Even if the state hits 8 percent, Hockenyos said that won't be an ominous sign.
"I think if it's sustained in this range for several months, that's a little worrisome," he said.
Professional and business services jumped by 18,700 jobs last month. Education and health services increased by 14,400. The government sector grew by 12,800 jobs, and construction went up 3,000 jobs, its first jump in nearly a year.
The biggest loss came in trade, transportation and utilities, which dropped 11,400 jobs.
"I think the summer of '09 is the bottom," Hockenyos said. "Is July the bottom or August the bottom? I don't know. But I think we are at the bottom."
Texas continues to creep closer to the national unemployment rate, which is at 9.4 percent. The state was a full 2 percentage points behind the national figure a month ago.
The number of people filing continuing unemployment claims was at 1.34 million in July, a slight drop from last month but more than twice the total from a year ago.
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 jumped to 8.2 percent from 8 percent in June.
Following are the preliminary July jobless rates for local areas in Texas, with revised June numbers in parentheses. The local figures are not seasonally adjusted.
Abilene 6.4 (6.3)
Amarillo 5.8 (5.7)
Austin-Round Rock 7.3 (7.1)
Beaumont-Port Arthur 10.6 (10.1)
Brownsville-Harlingen 10.7 (10.4)
College Station-Bryan 6.5 (6.5)
Corpus Christi 8.0 (7.7)
Dallas-Plano-Irving 8.3 (8.1)
El Paso 9.6 (9.5)
Fort Worth-Arlington 8.4 (8.3)
Houston-Sugar Land-Baytown 8.4 (8.0)
Killeen-Temple-Fort Hood 7.2 (7.1)
Laredo 9.4 (9.4)
Longview 8.5 (8.0)
Lubbock 6.1 (6.0)
McAllen-Edinburg-Mission 11.6 (11.0)
Midland 6.3 (6.1)
Odessa 9.5 (9.2)
San Angelo 6.9 (6.8)
San Antonio 7.1 (6.9)
Sherman-Denison 8.6 (8.3)
Texarkana 6.7 (6.5)
Tyler 8.0 (7.9)
Victoria 8.0 (7.7)
Waco 7.2 (7.1)
Wichita Falls 8.0 (8.1)
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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