Tuesday, May 06, 2014

Job Growth Slows, Unemployment Decreases

Start each day with GlobeSt.com's Texas AM Alert for original coverage of the latest transactions and trends shaping the Houston, Dallas markets, as well as the entire Southwest region. 

“The culture here tends to be very business friendly and that attracts a lot of people who are interested in being in that kind of environment,” Turner says.
DALLAS–According to the latest report by the Federal Reserve Bank of Dallas, the state of Texas added 8,300 jobs last month. While this is the smallest monthly gain since October 2011, Texas still ranked sixth for job gains during March.
Unemployment fell from 5.7% in February to 5.5% in March, continuing Texas’ trend of sitting well below the US average of 6.7%.
“Job growth of this magnitude is about much more than just attractive statistics on a printed page; it means more choices and better options for Texas job seekers, stronger families and communities, and brighter futures for our children,” Governor Rick Perry said in a statement when the February unemployment numbers were released.
Part of the job growth strength lies in Texas’ continuously increasing population growth. According to the latest reports from the US Census Bureau, Texas added 387,000 residents between July 1, 2012 and July 2, 2013. And the state’s population has grown by 1.3 million since of April of 2010. The largest areas of growth include Dallas, Houston, Austin, San Antonio, El Paso and the Rio Grande Valley. 
One of the first states to rebound after the 2007-2009 recession, Texas surpassed its prerecession employment peak in late 2011. Many other states have yet to reach that level, let alone surpass it. 
Job creation is being seen in all sectors and pay levels. According to a report by the Federal Reserve Bank of Dallas, “Texas has succeeded in producing broad-based job growth in the context of job and wage polarization nationally.”
This increase in both residents and jobs has lead to a number of new developments in the office, multifamily, retail and hotel sectors.  And due to the its job-friendly policies, many companies have been looking to locate in Texas, some even going so far as to move their headquarter facilities from other states.
“The culture here tends to be very business friendly and that attracts a lot of people who are interested in being in that kind of environment,” says John Turner, principal of Rockstreet Partners.
Over the last three years, nearly 1,900 companies have expanded in Texas, according to Sara Rutledge, director of research and analysis in Texas for CBRE. And that trend, thanks to continued population growth, will only continue to expand.
“The industries that are a staple of our economy are very strong, but there is also a lot more competition between states from a regulatory view point,” Turner tells GlobeSt.com. “You take a large amount of relocations from companies and individuals from states like California and Illinois to Texas.”