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REPORT: Texas Ranks Dead Last In Total Job Creation, Accounting For Labor Force Growth

Posted by on Aug. 17, 2011 at 10:45 AM
  • 5 Replies

REPORT: Texas Ranks Dead Last In Total Job Creation, Accounting For Labor Force Growth

Data for this post was compiled by Matt Separa, Research Assistant with the Economic Policy Team at the Center for American Progress Action Fund.

Gov. Rick Perry (R-TX), since he launched his presidential campaign on Saturday, has paraded around the stat that “since June of 2009, Texas is responsible for more than40 percent of all of the new jobs created in America.” “Now think about that. We’re home to less than 10 percent of the population in America, but 40 percent of all the new jobs were created in that state,” Perry says.

This stat leaves out a lot of the story. The Federal Reserve Bank of Dallas has promoted the number, but “it acknowledges that the number comes out different depending on whether one compares Texas to all states or just to states that are adding jobs.” Between 2008 and 2010, jobs actually grew at a faster pace in Massachusetts than in Texas.

In fact, “Texas has done worse than the rest of the country since the peak of national unemployment in October 2009.” The unemployment rate in Texas has been steadily increasing throughout the recession, and went from 7.7 to 8.2 percent while the state was supposedly creating 40 percent of all the new jobs in the U.S.

How is this possible, since Texas has created over 126,000 jobs since the depths of the recession in February 2009? The fact of the matter is that looking purely at job creation misses a key point, namely that Texas has also experienced incredibly rapid population and labor force growth (due to a series of factors, including that Texas weathered the housing bubble reasonably well due to strict mortgage lending regulations). When this is taken into account, Texas’ job creation looks decidedly less impressive:

Clearly, there is no miracle for Texas here. While over 126,000 net jobs were created in Texas over the last two and a half years, the labor force expanded by over 437,000, meaning that overall Texas has added unemployed workers at a rate much faster than it has created jobs. And although states like Michigan have lost jobs (29,200 since February 2009), the state’s labor force has shrunk by over 185,000 since then. As a result, while there are fewer jobs, there are significantly less workers looking for them.

As Paul Krugman put it, “several factors underlie [Texas'] rapid population growth: a high birth rate, immigration from Mexico, and inward migration of Americans from other states, who are attracted to Texas by its warm weather and low cost of living, low housing costs in particular.” But they have little to do with Perry’s policies.

Now that certainly doesn’t make the situation in Michigan a good one, as contraction of the labor force is one side effect of the prolonged recession and unemployment there is still 10.6 percent. However if there is a real “miracle” here, it is North Dakota, which has seen over 27,000 new jobs and a labor force expansion of only 3,700, resulting in about 24,000 new jobs for workers who previously had none. But no one is proclaiming the “North Dakota miracle” and saying that Gov. Jack Dalrymple (R-ND) should be running for President.

by on Aug. 17, 2011 at 10:45 AM
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by Platinum Member on Aug. 17, 2011 at 10:49 AM
Noooo. That ain't right but he perfect ughhhh
by on Aug. 17, 2011 at 11:19 AM

TEXAS’ EMPLOYMENT-TO-POPULATION RATIO HAS PLUMMETED ON PERRY’S WATCH |Reuters’ Felix Salmon today highlighted data showing that Texas employment-to-population ratio — the percentage of the population that has a job — has plummeted under 2012 presidential contender Gov. Rick Perry’s (R-TX) watch. “According to the figures we have for 2011, 44.7% of the total US population has a job, compared to 43.5% of the Texas population. And Perry’s record is pretty bad, here: he inherited a ratio of more than 47% in Texas from George W Bush, and has presided over a steady decline ever since — including every year of the Bush presidency bar 2005,” Salmon noted.
by on Aug. 17, 2011 at 1:46 PM

Well this just tells me Texans don't want or need jobs.What the heck they elected him 3 times. Is this what America has to look forward to if he gets elected?

by Silver Member on Aug. 17, 2011 at 3:07 PM

What I find interesting is the chart that BleedinHeartMom posted. That tells the true picture.  People will say that due to their great economy people are rushing in from states that are struggling. But if you look at the chart the TX employment to population ratio has been decreasing since 1996/1997. That tells me that for over 15 years TX has been struggling to create more jobs to keep up with the population demands and has been unsuccessful.  This may shed light into why they are now trying to steal corporations from other states. Since they are having difficulty creating new ones, their only option would be to take existing jobs in other states  and convince those business to fire people in the existing state & move to TX.

by on Aug. 17, 2011 at 3:43 PM

Okay, but if you rank it by who's the worst,


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