The Lone Star State saw robust job growth in May, and the Federal Reserve Bank of Dallas is forecasting an annual growth rate of more than 2% for the rest of 2023.
Texas added 41,200 jobs in May, hitting a 3.6% month-over-month growth rate, the Dallas Fed said in its Texas Employment Forecast released last Friday. Additionally, the Dallas Fed said it expects the state to add around 377,000 jobs by the end of December.
“Despite economic headwinds, strong employment growth continued in May as the state added close to 41,200 jobs,” said Luis Torres, the Dallas Fed’s senior business economist, the Dallas Business Journal reported. “Texas job growth is a solid 3.6 percent year to date as the labor market continues to defy expectations of slowing.”
Although April’s growth rate was revised down slightly to 2.5%, Texas’ May job numbers more than made up for it.
“[Texas jobs] will increase 2.8 percent in 2023, with an 80 percent confidence band of 2.2 to 3.3 percent,” the Dallas Fed claimed.
The forecast is based on an average of four models, including projected national GDP, oil futures prices, and state and national indexes.
“Strength in May was led by a surge in energy sector employment and by increases in professional and business services and health care services jobs. Leisure and hospitality and manufacturing were the only two sectors to report job losses,” Torres said, according to the Dallas Business Journal.
Gov. Greg Abbott recently commented on Texas’ economic growth, declaring the Lone Star State “a model for the nation,” The Dallas Express reported.
“Not only are more Texans working than ever before, Texas leads the nation for jobs added over the last 12 months,” Abbott said in a news release. “Texas has also smashed the record for total jobs 20 months in a row, proof that jobs grow and people prosper where free enterprise flourishes.”
“With the Texas labor force now surpassing 15 million people and larger than the population in 46 states, we truly are building an even stronger Texas of tomorrow,” he said.
As previously reported by The Dallas Express, Texas’ labor force in May comprised roughly 15 million workers across approximately 13.9 million jobs. During the month, the state’s unemployment rate rose to 4.1%, up from 4% the month before and slightly above the 4% national inflation rate.
