The Great Recession has taken its toll on the country. Unemployment remains at 9.1% nationally. 7.51 million Americans remained on emergency unemployment benefits in June. That doesn’t even include those who have run out of benefits and now sit idly on the sidelines. Nor do any of these figures account for the millions of underemployed.
Yet, despite these horrific numbers, some states have fared better than others. A handful of states have managed quite well in fact, given the circumstances. One, Texas, has weathered the recession as one of the fastest growing states due in part to an economy that is well diversified.
With Diversified Economy, Texas Continues To Grow Despite The Great Recession. “The national recession can’t stop Texas cities from growing. Four of the 10 fastest gainers -- including No. 1 Frisco -- are in the Lone Star State, according to Census population estimates out today.” (Douglas Stanglin, “U.S. Census: Texas Booms Despite Recession While Florida Lags,” USA Today, 6/22/10)
• “From 2008 to 2009, 11 of the nation’s 25 fastest-growing cities with more than 100,000 people were in Texas.” (Douglas Stanglin, “U.S. Census: Texas Booms Despite Recession While Florida Lags,” USA Today, 6/22/10)
“. . . Texas Escaped Much Of The Downturn Because Of A Diversified Economy That Includes Oil And High-Tech.” (Douglas Stanglin, “U.S. Census: Texas Booms Despite Recession While Florida Lags,” USA Today, 6/22/10)
To say that Texas has “weathered” the recession may actually be an understatement. Under the tenure of Governor Rick Perry, the nation’s longest serving Governor, the state has eclipsed New York in the last decade, despite the recession, to claim the mantle of America’s second largest economy, just behind California.
Texas Has Grown Into The Second Largest Economy In The Country. “Texas became the USA’s second-largest economy during the past decade — displacing New York and perhaps heading one day toward challenging California — in one of the biggest economic shifts in the past half-century.” (Dennis Cauchon, “Texas Wins In U.S. Economy Shift,” USA Today, 6/21/11)
“Texas Notched One Of The Biggest Increases In Size In A Half-Century, Surpassing $1 Trillion In Annual Economic Output.” (Dennis Cauchon, “Texas Wins In U.S. Economy Shift,” USA Today, 6/21/11)
“The State Gained Nearly A Full Percentage Point In Its Share Of The U.S. Economy During The Decade, Reaching 8.3% In 2010.” (Dennis Cauchon, “Texas Wins In U.S. Economy Shift,” USA Today, 6/21/11)
“This Growth In Economic Clout Has Been Matched Only Twice In The Past 50 Years — By California In The 1980s And Texas Itself During The 1970s Oil Boom.” (Dennis Cauchon, “Texas Wins In U.S. Economy Shift,” USA Today, 6/21/11)
There are surely many causes for Texas’ growth: flight of millionaires from California, New York, and New Jersey to the business friendly less-taxed, less-regulated state of Texas, a lower cost-of-living, warmer climate and a more diversified economy, to name a few.
Regardless of the “how” and the “why”, of which many have their own opinions, Texas’ ability to grow and endure the Great Recession stands in stark contrast to much of the rest of the country. So how does Texas compare to the other 49 states and the District of Columbia when it comes to its workforce and unemployment during the Great Recession?
In a nutshell, Texas is one of only 22 states (including the District of Columbia) to actually see the size of its labor force grow. In fact, Texas’ labor force grew by nearly a half-million (476,658), or by 4%, between January 2009 and May 2011. The only state in the country to increase its labor force by a greater percentage was Mississippi (4.6%), but on a much smaller scale (59,572).
Conversely of course, that means 29 states saw their labor force shrink during the same time period. California led the way with 225,150, followed by Michigan with 176,234. The two states with the highest decrease as a percentage of their labor force were Indiana and Michigan (3.6%).
Naturally, adding to a state’s labor force does not equate to employment. Here again though, Texas has surpassed much of the rest of the country. Of the 22 states that increased the size of their labor forces, only 12 increased employment rolls between January 2009 and May 2011. Texas’ employment rolls grew by 246,042, from 11 million to 11.3 million, an increase of 2.2% Only Mississippi’s employment rolls grew at a greater rate of 2.3%.
In stark contrast, not one of the 29 states with shrinking labor forces increased their employment rolls. California, despite losing a quarter-million from its labor force, still saw a decrease in employment rolls by more than 577,000 during the same period. Eight of the 29 states’ employment rolls dropped by 100,000 or more, including California (577,106), New York (181,436), Georgia (173,826), Pennsylvania (136,663), Michigan (109,969), North Carolina (102,227), New Jersey (100,732), And Colorado (100,056).
Applying Texas’ rate of employment growth (2.2267%) to the remaining 49 states plus the District of Columbia, only 16 states would have seen the numbers of employed still drop between January 2009 and May 2011. California’s loss of 577,106 employed would have dropped to less than 210,000. 34 states would have increased the number of employed on their rolls. Virginia would have added the most employed, 115,686.
Perhaps when looking for answers on how to grow the economy and create jobs, the best place in the country to start looking just might be Texas.
Note: all numbers derived from Bureau of Labor Statistics reports. Some preliminary numbers for the month of May 2011 may change or be re-adjusted over time.
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