Seven of 11 major industries added workers in July, but the jobless rate rose to a seasonally adjusted 7.9 percent because of the larger work force
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August 21, 2009
Texas added jobs last month for the first time since November, yet the seasonally adjusted jobless rate crept up as the state’s work force reached 12 million, a new high.
Seven of 11 major industries added jobs in July, with professional and business services, education and health services, and government leading the way. Overall, the state added 37,900 nonagricultural jobs.
But Texas’ jobless rate, adjusted for seasonal factors, rose to 7.9 percent in July from 7.5 percent in June because of the larger number of people in the work force.
Vincent Lyons, a Texas Workforce Commission economist, attributed the latest surge in the labor force to students looking for work. The work force has been growing all year as stay-at-home spouses and youths sought jobs to help cover for the loss of a primary-wage-earner’s income, he said.
"It’s the household effect," Lyons said.
The number of Texans seeking jobs rose to 998,800, the highest it’s been since the state began tracking it in 1976, Lyons said. Texas’ civilian labor force reached 12.1 million, up from 11.1 million in June.
"Even though we’re producing jobs for the first time in nine months, we’ve still got people who are being displaced," Lyons said.
Statewide gainers in July, on a seasonally adjusted basis:
Professional and business services, which include temporary help and other staffing agencies; lawyers; and accounting services, added 18,700 jobs, the segment’s first month-to-month gain since October. In the last year, the category shed 51,000 jobs. Growth in the Dallas-Fort Worth-Arlington area was particularly strong, Lyons said.
Education and health entities added 14,400 jobs, the 10th straight month-to-month gain. In the last year: up 63,800 jobs. North Texas was a strong contributor to the state’s gains in this area as well, Lyons said.
Government agencies added 12,800 jobs, the 10th straight monthly gain. In the last year: up 51,900 jobs.
Construction businesses added 3,000 jobs, the first monthly increase since October. In the last year: down 76,500.
Leisure and hospitality companies added 2,800 jobs, the fourth straight monthly gain. In the last year: up 14,300.
Financial companies added 1,800 jobs, the segment’s third straight monthly gain. In the last year: up 200.
Other services added 1,000 jobs. In the last year: up 700.
Statewide losers in July:
Oil, gas, mining and logging: down 1,400 jobs. Off 24,300 in the last year.
Manufacturing: off 900 for the month and 77,900 in the last year.
Trade, transportation and utilities: off 11,400 for the month and 108,100 in the last year.
Information: off 2,900 jobs in the month and 15,600 in the last year.
"The national economic recession continued to have an adverse impact on the Texas economy," said Tom Pauken, the Texas Workforce Commission chairman. "Nonetheless, the Texas unemployment rate remained well below the national rate [9.4 percent] and there were signs of positive growth in certain industries."
In the Fort Worth-Arlington area, the jobless rate rose to 8.4 percent in July from 8.3 percent in June and 5.2 percent a year ago. The commission doesn’t seasonally adjust such figures for metropolitan areas.
The area lost 7,800 jobs, or 0.9 percent. Local governments lost most, shedding 5,900 jobs, or 6.4 percent, as school districts reduced janitorial and maintenance staff at year’s end, Lyons said.
In Dallas-Fort Worth-Arlington on a nonseasonally adjusted basis:
Gains in professional and business services accounted for 70.3 percent of the state’s gains, adding 10,900 jobs, compared with 15,500 for the state, Lyons said.
Administrative support, waste management and remediation services was the largest contributor to professional and business services’ gain, adding 3,200 jobs.
Growth in educational and health services accounted for 72.3 percent of Texas’ gains, adding 6,800 jobs, compared with the state’s 9,400.
Hospitals added 200 jobs, while Texas as a whole lost 1,800. Healthcare and social assistance was the biggest contributor, adding 1,900 jobs.
Government agencies posted the biggest job loss, at 14,300.
Fort Worth-Arlington jobs in July Schools led a big seasonal drop in jobs last month.
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