On Aug. 18, the Federal Reserve Bank of Dallas released its Texas Employment Forecast predicting a 3.0 percent job growth in 2023, with 33,500 jobs added in July, according to a press release. The forecast paints an encouraging picture for the labor market in Texas.
“Job growth accelerated in July as the labor market remains resilient, with the state adding around 33,500 jobs,” said Luis Torres, Dallas Fed senior business economist, in the release. “Strength in July was led by robust increases in leisure and hospitality and construction employment, and by gains in manufacturing and education and health. Information services, oil and gas, and professional and business services reported job losses.”
According to the press release, the Texas employment outlook has strengthened with a 3.0 percent increase in jobs in 2023, within a confidence band of 2.6 to 3.4 percent. This is an improvement from the previously predicted growth of 2.5 percent for the year.
Texas added 33,500 jobs in July, with an upward revision for June's numbers to 28,700 jobs added, according to the press release. Based on an average of four models, including projected national GDP, oil futures prices, and leading indexes for Texas and the U.S., the forecast predicts that 404,100 jobs will be added in Texas this year, bringing total employment in December 2023 to 14.0 million.
Furthermore, the report shows an annualized growth of 2.9 percent month over month in July, with June's growth revised up to 2.5 percent.
Despite these positive numbers, the Dallas Fed also acknowledged an increase in unemployment rates in major Texas metro areas, though the overall state unemployment rate remained steady at 4.1 percent in July, unchanged from June.
The forecast paints an encouraging picture for Texas' labor market, highlighting resilience and growth in key sectors. It offers essential insights into current trends and the potential direction of the state's economy, all supported by the detailed analysis from the Federal Reserve Bank of Dallas.