Unemployment Rate In The State Of Texas Economics Essay
We believe that if men have the talent to invent new machines that put man out of work, they have the talent to put those back to work.
John F. Kennedy (1917-1963)
Unemployment is a very sensitive topic that rattles the government’s brain on how to create new jobs and keep the economy afloat. When you examine the circular flow model, the household plays a major role in the function and flow of the chart. Unemployment effects everyone; not just the person who lost his or her job. If consumers cannot maintain a steady income for their household, there will be less spending and without spending the economy cannot function properly. Knowing the national and state unemployment rate is very important information that weighs heavily on everyone’s livelihood. In today’s economy, Texas has utilized their private sector resources to minimize their unemployment rate compared to the national unemployment rate.
The current national unemployment rate is at 9.6%, while Texas unemployment rate is at 8.1%. In the past decade Texas has created more private sectors than any other state, it also has the lowest unemployment rate out of the 10 largest states in the nation. According to the U.S Bureau of Labor Statics, Texas has created 724,300 more net private sector jobs. The top three leading cities in Texas that are creating new jobs are Houston, Dallas, and Austin. The three major private sector jobs created in Texas are Energy, Technology, and Export.
In the late 19th century, Pennsylvania held the most oil production in the country until January 10, 1902. In southeastern Texas a small city of Spindletop Texas ran into black gold and from there the famous Lucas Gusher would set history. There are approximately 354,616 oil and gas wells in Texas today. There are 29 major oil companies located in the Gulf region to know a few: Chevron, BP, Exxon, and many more.
In 2008 Texas had the second largest high-tech employment gain in the nation even during the recession. Texas also remains the second largest cyberstate by tech employment. The largest tech employment gain came from three major sources such as computer systems design and related services (+9,200), followed by engineering services (+4,400), and R&D and testing jobs (+2,300). Texas is a leader in a high- tech industry, ranking among the top three terms of employment 10 of 15 private sectors.
Texas exports most of their goods and services to Mexico and when Mexico is doing well it boosts Texas income. Along with Mexico, Texas also exports goods and services to Canada, China, Netherlands, and Korea. With creative thinking Texas went down a different path that other states did not pay close attention to the housing market. Unlike other states Texas became more aware and stricter about their guidelines of trying to buy a home. In other states the housing market created a crisis for homeowners and buyers, but Texas held their grounds and their careful planning proved to other states their ability to take charge.
As stated above, Texas as a whole has an unemployment rate of 8.1%, while The United States as a whole has an unemployment rate of 9.6%. The city of Houston Texas averages an unemployment rate of 7.5% which is not very bad knowing that Houston is the United States fourth largest city. Over the years Houston has decreased in their unemployment rate. In the mid 1900’s Texas’s unemployment rate came from being an average between 8 and 9 percent. As the end on the 1900s approached Houston’s unemployment rate decreased to an average of 5.3%. More major jobs were being offered in Texas that paid well and gave aid toa higher demand and need for the products produced.
The city of Dallas Texas averages an unemployment rate of 7.9%. The unemployment rate could be lower knowing that Dallas as well as Houston and Austin are known as the top leading cities of Texas for finding employment. The residents of this city have many opportunities such as energy, technology and exporting goods, which are the top three jobs for this city. Over the years Dallas has had a steady unemployment rate between 7 and 8 percent. All consumers and producers know their needs and know what they have to do meet them; therefore the manufacturer’s produce more needed goods. Consequently, the residents of Dallas will have a greater demand for job opportunities and a will decrease their unemployment rate.
In Austin the unemployment rate had a significant decrease in 2010 from 7.2% to 6.8%. As of September this year it was recorded that more than 4,200 people were employed in the Austin area and 4,600 more jobs were released. Austin’s unemployment rate as of now is 7.1%. As well as Houston and Dallas, Austin has many job opportunities. We can see this by their unemployment rate. Many more jobs will be necessary for the greater Texas areas knowing that their economy is not as stable as it should be. People ages 18 and under are also looking for employment. If manufacturers produce more produce that will be mandatory for use, then the unemployment rate as a whole will decrease just because they now have to purchase and buy things that are needed. Without jobs, how will the mandatory needs of the people be met?
According to Texashead.org , “The Texas economy, the world’s 11th-largest, continues to fare better than those of many other states”. The reason that the Texas is doing so well is because of all its natural resources that it exports as well as the jobs it is continuously creating.Texashead.org also states that “Texas’s (GSP) or Gross State Product declined more slowly than the rest of the U.S. (-1.4 percent versus -2.4 percent.)”. This slow decrease in GSP is due to the fact that Texas is a huge exporter of Energy. The energy market is one of Texas’ biggest exports and its also one of the states biggest employers. Some of these companies include Exxon, BP, and Reliant, which are all big in the Energy market, which also provides jobs for residents of the state. These companies are instrumental for the thriving economy in Texas. They bring in money that is then spread around the state.
Another one of the reasons that the Texas unemployment rate is lower than the rest of the nation is because of the housing market. “In September 2010, the Texas foreclosure rate was 1 in every 752 mortgages. This was substantially better than Nevada’s 1 in 69, Florida’s 1 in 148, Arizona’s 1 in 159, and California’s 1 in 178”. Texas homes have held their value more during the recent recession than most other states and this plays a role when considering the jobs that are created and lost when it comes to the housing market.
Overall the Texas economy thrives off a variety of resources, and business that have had themselves a staple in the state for many years. With multiple areas that are steadily building and developing, the Texas economy is sure to grow over the ears to come. With business steady rising, and export on things such as energy, oil food and land these should fuel Texas employment in the future. Texas has always set itself apart with its identity and culture. Its diverse economy is no different. Proving itself to be stable and statue of perseverance through these hard economic conditions of the present say recession. Hopefully it enough to help push the country better direction while maintaning it own financial success.
Greater Growth => Lower Employment
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