Tuesday, December 6, 2016

Unemployment increases - Texas, the least affected

Year 14 / Issue 823 / December 7-13, 2008
Week to worry
By Don Juan Corzo

Houston- The unemployment lines to receive federal assistance continue to grow. the US Department of Labor reported that requests increased from 506,000 in October to 542,500 in November, a record in 16 years.
However, the unemployment rate in Texas is the lowest while the highest number of petitions for assistance was recorded in California, making Texas the least affected.
“The economy in Texas is more stable than in other states, but there could be a rise in unemployment and slower business growth in 2009,” said Texas Governor Rick Perry in his State of the State Address back in October in Houston.
Manpower Employment published a comprehensive survey in September to project unemployment trends in the near future.
“Despite the uncertainty of pending elections [in ’08], the employment outlook appears to have stabilized in some industry sectors and continues to grow in Mining”, said Manpower President Joe Jonas Prising in early September before de financial crisis was acknowledged publicly.
On November 21, President George W. Bush signed into law an extension of unemployment benefits, a move he’d been opposed to in the past. A spokesperson for the President added that employees for the three automaker giants [GM, Ford, Chrysler] will be affected adversely if a bailout package was not approved.
Although Texas doesn’t have auto manufacturing plants, a domino effect would expand the problem to other industries, including those that are energy-related.
The US Federal Reserve projected that the national unemployment rate will increase to 7.5 percent in 2009, while it was just at 5.6 percent in summer ‘08.
According to Manpower, large cities like Houston have shown healthier employment growth statewide than Dallas, Austin or San Antonio. Furthermore, it’s estimated that 40 percent of employers in Houston will hire more people.
“Houston and Texas haven’t been as affected by current unemployment trends because the energy industry is strong,” said an economist at a local university.
The industries with the worst employment outlook are durable and non-durable goods manufacturing, transportation, utilities, ,financial, real estate, wholesale and retailers.
Employers in sectors of construction, education, and public administration indicate better employment conditions.

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