Texas Employers Add 23,000 Jobs

By BRENDAN M. CASE / The Dallas Morning News

The U.S. economy has been losing jobs all year, but Texas employers added 23,000 jobs in October, the Texas Workforce Commission said Friday.

Assuming that not all the new positions went to outplacement specialists, bankruptcy lawyers and repo men, the data amounted to an unexpected – and perhaps temporary – bright spot amid a steady drumbeat of dismal economic news.

The U.S. economy shed 240,000 jobs in October, the 10th consecutive month of national job losses. Economists said the losses are a reflection of the financial crisis, the housing bust and the sharp downturn in everything from consumer spending to industrial production.

"I know the Texas economy is doing better than the rest of the country, but against a backdrop of very sizable job loss nationally, I'm really surprised we added 23,000 jobs in October," said Bernard Weinstein, an economist at the University of North Texas.

The Friday jobs report contained plenty of bad news, too, however.

In October, the state's unemployment hit 5.6 percent, compared to 5.1 percent in September and 4.3 percent in October 2007.

The national jobless rate was 6.5 percent in October, up from 6.1 percent in September and 4.8 percent in October 2007.

"This is not going to be a pleasant situation over the next few months," said Tom Pauken, chairman of the Texas Workforce Commission, attributing the October rise in the Texas rate to the effects of Hurricane Ike and the deteriorating national economy. "We've had good times. But that's going to change, even here in Texas."

Data on payroll employment and the unemployment rate are collected separately and sometimes move in apparently contradictory directions.

Pain on display

Plenty of economic pain is already apparent in the Dallas-Fort Worth area. Some retail stores are closing, and a few chains are liquidating, slashing jobs. Real estate developers are halting some projects, sometimes leaving buildings half-built and laying people off.

Financial companies are also hurting. Earlier this month, Citigroup Inc. and Fidelity Investments announced worldwide layoffs, which could hit employees in North Texas.

The Dallas-Fort Worth area has already seen a dramatic spike in unemployment over the last 12 months, rising to 5.5 percent in October from 4 percent in the same month last year. Unlike the state's jobless rate, the local figure is not adjusted for seasonal variations.

Weak forecast

Looking ahead, economists said the Texas job market would probably weaken in the coming months.

"When we look at the year as a whole, Texas will have positive employment growth," said Mine Yucel, an economist at the Federal Reserve Bank of Dallas. "Next year, I think it will be quite a bit weaker."

Indeed, Ms. Yucel said she was surprised by the state's employment gain in October, as did Waco economist Ray Perryman.

"I was very surprised," Mr. Perryman said. "I really figured we would be down a little bit."

Texas employers added 12,200 positions in professional and business services, along with 3,700 jobs in education and health services, and 2,700 in the category of trade, transportation and utilities.

The state lost 3,600 jobs in manufacturing, 1,300 in financial activities and 1,200 in construction.

In September, Texas lost 3,700 jobs, according to revised figures released Friday, up slightly from the preliminary figure of a 3,000 job loss. September is the only month this year in which Texas has lost jobs.

Cheryl Abbot, an economist in Dallas with the U.S. Bureau of Labor Statistics, said she wasn't surprised that Texas added jobs in October. But she also warned the coming months may be less positive.

"Texas is in a different condition from the rest of the country," she said. "But there is a definite slowdown in Texas. I think that's what all of us need to keep in mind."