Texas adds 33,600 jobs in November as economic expansion slows

Texas added 33,600 jobs in November, the second-smallest monthly gain in over a year, as the pace of job growth began to slow in the Lone Star State.

The construction industry lost 3,900 jobs, a sign that higher interest rates and the pullback in the housing industry is starting to take a toll on the broader economy.

But leisure and hospitality, one of the hardest-hit industries during the pandemic, continued to be in expansion mode. In November, the sector had over 1.5 million workers in Texas, 112,000 more than its pre-pandemic level.

Texas’ November job gains were far lower than the 58,800 jobs added in October, an estimate that was revised upward, according to data from the U.S. Bureau of Labor Statistics.

But the gains were still well ahead of average monthly increases in 2018 and 2019, before the pandemic hit.

Texas’ seasonally adjusted unemployment rate remained at 4% last month, slightly higher than the national rate of 3.7%, and an indication that the supply of workers is still tight.

Texas’ job growth is usually about twice as fast as the nation’s, but growth rates were the same for both last month – each gaining 0.2%. Over the past year, however, Texas has maintained its usual edge.

For the 12 months ended in November, Texas grew jobs by 5.1%, seasonally adjusted, compared with 3.3% growth for the U.S.

Texas’ year-over-year job growth was the highest of any state, ahead of Florida, up 4.7%, and North Carolina, up 4.3%, according to the Bureau of Labor Statistics.

In addition to job losses in construction, government lost 1,000 positions in Texas last month; other services lost 300; and the giant trade, transportation and utilities segment lost 700.

After leisure and hospitality, the big gainers were education and health services, up 5,400; mining and logging, which includes the oil and gas industry, up 3,800; and information, up 3,700, according to the Texas Workforce Commission.

For the past 12 months, employment in mining and logging has grown nearly 23%, and information and leisure and hospitality were both up about 12%.

The Texas Independent Producers and Royalty Owners Association’s “labor analysis continues to show a high demand for employees in the Texas oil and natural gas industry,” said Ed Longanecker, the trade association’s president.

Unemployment rates remained low in much of the state. Among Texas metros, Austin, Amarillo and Midland recorded the lowest rates in November: 2.8%, not seasonally adjusted.

Dallas-Plano-Irving had a comparable rate of 3.2% and Fort Worth-Arlington’s was 3.4%.

Among metros with the highest unemployment, not seasonally adjusted: McAllen’s rate was 6.4% in November, and Beaumont’s was 6%, the Texas Workforce Commission said.