Texas unemployment claims continue downward trend
COLLEGE STATION – Initial jobless claims in Texas decreased to 30,100 the week ending May 8, marking six straight weeks of declines.
About 5.09 million unemployment claims have been filed since March 21, 2020, according to U.S. Department of Labor (DOL) data.
Continuing unemployment claims increased to 261,600 the week ending May 1.
"Anecdotal evidence from service sector businesses points toward the lack of available applicants and generous unemployment benefits as major impediments in rehiring workers," said Dr. Luis Torres, a research economist for the Texas Real Estate Research Center.
The number of workers receiving benefits through the pandemic unemployment assistance program, which is open to gig workers and others who don’t typically receive benefits, decreased the week ending May 1.
Last week, U.S. initial claims decreased to 473,000, bringing the 60-week total to 81.7 million.
According to the U.S. Bureau of Labor Statistic’s Job Openings and Labor Turnover Survey (JOLTS), national job openings reached 8.1 million in March, the highest level of openings since the statistic started being calculated in December 2000.
There are more job openings than hires, showing the market is facing labor shortage issues. Quits are higher than layoffs and discharges, meaning people are leaving their jobs voluntarily for other jobs that possibly offer higher wages and benefits.
The JOLTS data collaborate findings that the labor market demand remains strong and labor supply is an issue.
Fewer people in most of Texas’ major and border metros filed new unemployment claims the week ending May, marking four straight weeks of declines. Brownsville-Harlingen was the exception, registering a slight increase.
Using data from the DOL and the Employment and Training Administration, the Center has estimated unemployment claims for Texas’ major and border metros since March 21, 2020:
Houston-The Woodlands-Sugar Land, 1.20 million claims;
Dallas-Fort Worth-Arlington, 1.16 million claims;
San Antonio-New Braunfels, 352,700 claims;
Austin-Round Rock, 298,000 claims;
McAllen-Edinburg-Mission, 139,700 claims;
El Paso, 121,100 claims;
Brownsville-Harlingen, 61,600 claims; and
Laredo, 34,900 claims.
"Increasing vaccination rates should lead to a faster recovery in the leisure and hospitality sector, possibly creating a wave of hiring that would allow thousands of laid-off workers to find jobs," said Torres.
Retail registered the highest number of initial claims the week ending May 1. The sector was followed by administrative/support/waste management/remediation services, healthcare and social assistance services, and construction.
The Texas Real Estate Research Center has a wealth of economic information online for free.
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