Texas Labor Market Review - Tracer2

TEXAS LABOR MARKET REVIEW

MARCH 2018

T

he Texas Monthly Labor Market Review brings you the most current labor market highlights and happenings across the Lone Star State. The information that follows is produced and published on a monthly basis and includes data on nonagricultural job trends, the labor force, job postings, and other relevant indicators for both the state and sub-state areas. Additional data and historical information is available on our website: Tracer2.com.

For additional information, please contact: 1-866-938-4444 [email protected]

FEBRUARY 2018 MONTHLY INDICATORS INDUSTRY EMPLOYMENT

CES program

40,500

Page 2

UNEMPLOYMENT RATE

LAUS program Page 5

INITIAL CLAIMS

ONLINE JOB ADS

HWOL Page 8

0.0%

15,992

More Indicators Page 10

Labor Market and Career Information

21,102

CURRENT EMPLOYMENT STATISTICS Statewide Industry Employment (Seasonally Adjusted)

T

otal Nonagricultural Wage and Salary Employment continued to climb, displaying strong growth for 2018 with an increase of 40,500 jobs in February following a revised gain of 29,600 positions in January. Goods Producing sector employment rose by 12,600 jobs, the strongest monthly increase for the sector since April

Industry

Feb 2018

2014, while the Service Providing sector added another 27,900 jobs. Total Nonfarm annual growth accelerated in February by 0.2 percentage points to 2.3 percent as 285,200 jobs were added over the year. Annual growth in the Goods Producing sector increased to 4.4 percent and marked 11 consecutive months of annual growth.

Monthly Annual Annual % Change Change Change

12,422,400

40,500 285,200

2.3

10,483,300

42,800 283,500

2.8

1,840,300

12,600

78,300

4.4

Mining & Logging

240,300

6,500

28,300

13.3

Construction

740,200

5,300

33,900

4.8

Manufacturing

859,800

800

16,100

1.9

27,900 206,900

2.0

2,487,700

11,800

47,100

1.9

Information

199,700

-500

-3,200

-1.6

Financial Activities

769,900

4,900

22,800

3.1

Professional & Business Services

1,718,500

13,200

64,300

3.9

Education & Health Services

1,683,700

4,100

25,300

1.5

Leisure & Hospitality

1,353,900

-3,300

45,500

3.5

429,600

0

3,400

0.8

1,939,100

-2,300

1,700

0.1

Total Nonagricultural Private Goods-Producing

Service-Providing Trade, Transportation & Utilities

Other Services Government

10,582,100

• The

Highlights

Mining and Logging industry added 6,500 positions in February for the industry’s largest overthe-month gain in recorded history.

• Construction’s

annual growth rate increased to 4.8 percent February, marking the industry’s fastest overthe-year growth since August 2015.

• Professional, Scientific, and

Technical Services added 33,600 positions over the year, accounting for more than half the overall annual growth in Professional and Business Services.

Total Nonagricultural Jobs 80,000

5.0%

60,000

4.0% 3.0%

40,000

2.0%

20,000

1.0%

0

0.0%

‐20,000

‐1.0% ‐2.0%

‐40,000

‐3.0%

‐60,000

‐4.0%

‐80,000

‐5.0%

OTM Change

OTY % Change


2

CURRENT EMPLOYMENT STATISTICS Metro Areas (Seasonally Adjusted)

Metro Areas Abilene MSA Amarillo MSA Austin-Round Rock MSA Beaumont-Port Arthur MSA Brownsville-Harlingen MSA College Station-Bryan MSA Corpus Christi MSA Dallas-FW-Arlington MSA Dallas-Plano-Irving MD Fort Worth-Arlington MD El Paso MSA Houston MSA Killeen-Temple MSA Laredo MSA Longview MSA Lubbock MSA McAllen MSA Midland MSA Odessa MSA San Angelo MSA San Antonio MSA Sherman-Denison MSA Texarkana MSA Tyler MSA Victoria MSA Waco MSA Wichita Falls MSA

Feb 2018

Monthly Annual Annual % Change Change Change

69,400 120,600 1,058,500 162,600 141,200 120,400 191,400 3,657,800 2,613,100 1,044,700 314,900 3,068,300 144,300 104,800 96,800 149,500 260,600 97,300 75,400 49,500 1,055,500 47,500 60,300 106,100 41,100 121,200 59,100

200 200 4,100 -400 100 -500 100 11,000 7,600 2,700 500 10,800 400 500 100 600 400 0 400 0 2,300 200 0 100 500 -100 100

1,100 1,700 37,200 -1,600 -200 5,800 -1,900 93,500 69,400 24,300 3,100 66,100 1,800 1,800 900 2,800 4,800 7,700 5,000 600 24,500 600 200 2,400 -100 100 200

1.6 1.4 3.6 -1.0 -0.1 5.1 -1.0 2.6 2.7 2.4 1.0 2.2 1.3 1.7 0.9 1.9 1.9 8.6 7.1 1.2 2.4 1.3 0.3 2.3 -0.2 0.1 0.3

Highlights

(MSA industry data are not seasonally adjusted)

• Twenty out of 26 areas expanded

in employment in February for a combined increase of 31,900 jobs. Twenty-two areas grew over the year, while four contracted.

• The

Houston-the WoodlandsSugar Land MSA continued to lead all areas for the fourth consecutive month with 10,800 jobs added.

• In percentage terms, the Victoria MSA outperformed all areas with a February employment gain of 1.2 percent.

• Annually, the Midland MSA grew

the fastest at 8.6 percent. Per not seasonally adjusted data, Mining, Logging, and Construction drove much of the employment growth with 5,400 jobs added since February 2017.

• Annual

employment loss was greatest in the Corpus Christi area with a decrease of 1,900 jobs. Leisure and Hospitality lost the most jobs locally with 1,200 positions shed.

Fastest Growing Metro Areas Over the Year 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%


3

CURRENT EMPLOYMENT STATISTICS Fastest Growing Metro Areas Over-the-Year (Not Seasonally Adjusted)

Midland MSA Area Industry Composition

Industry

100.0% Total Nonagricultural Mining, Logging, and Construction 31.3% Mining, Logging & Construction Manufacturing 3.4% Manufacturing Trade, Transportation, and Utilities 19.5% Trade, Transportation & Utilities Information 0.9% Information Financial Activities 4.0% Financial Activities Professional and Business Services 9.5% Professional & Business Services Educational and Health Services 7.7% Education & Health Services Leisure and Hospitality 9.9% Leisure & Hospitality Other Services 3.5% Other Services Government 10.3% Government

Annual Change 8,100 5,400 300 900 0 300 300 0 800 100 0

Annual % Change 9.1 21.5 10.0 5.0 0.0 8.3 3.3 0.0 9.1 3.0 0.0

Annual Change 5,300 3,000 200 900 0 100 500 -100 700 200 -200

Annual % Change 7.5 19.5 4.9 5.7 0.0 3.1 13.2 -1.8 9.0 5.9 -1.8

Annual Change 5,600 500 400 100 0 200 800 0 1,500 200 1,900

Annual % Change 4.8 6.9 7.5 0.6 0.0 5.4 9.2 0.0 10.1 6.1 4.3

Odessa MSA Area Industry Composition

Industry

100.0% Mining, Logging, and Construction Total Nonagricultural 24.3% Manufacturing Mining, Logging & Construction 5.7% Trade, Transportation, and Utilities Manufacturing 21.9% Trade, Transportation & Utilities Information 0.8% Information Financial Activities 4.4% Financial Activities Professional and Business Services 5.7% Professional & Business Services Educational and Health Services 7.3% Education & Health Services Leisure and Hospitality 11.2% Leisure & Hospitality Other Services 4.7% Other Services Government 14.1% Government

College Station-Bryan MSA Area Industry Composition

Industry

100.0% Mining, Logging, and Construction Total Nonagricultural 6.3% Mining, Logging & Construction Manufacturing 4.7% Manufacturing Trade, Transportation, and Utilities 13.3% Trade, Transportation & Utilities Information 1.1% Information Financial Activities 3.2% Financial Activities Professional and Business Services 7.8% Professional & Business Services Educational and Health Services 9.3% Education & Health Services Leisure and Hospitality 13.4% Leisure & Hospitality Other Services 2.9% Other Services Government 38.0% Government

Download CES excel data sheets (include industry-level data) Labor Market and Career Information

4

LOCAL AREA UNEMPLOYMENT STATISTICS Texas & the U.S. (Seasonally Adjusted)

Texas February 2018 Employed 13,113,000 Unemployed 544,100

Date

4.0%

CLF

Employment Unemployment

Rate

February 1 2018

13,657,100

13,113,000

544,100

4.0

January 2018

13,612,700

13,074,200

538,500

4.0

February 2017

13,476,500

12,838,800

637,700

4.7

2

U.S. February 2018 Employed 155,215,000 Unemployed 6,706,000

Date

4.1%

CLF

Employment Unemployment

Rate

1 February 2018 2

161,921,000

155,215,000

6,706,000

4.1

January 2018

161,115,000

154,430,000

6,684,000

4.1

February 2017

160,056,000

152,528,000

7,528,000

4.7

Highlights

• Texas’ seasonally adjusted unemployment rate was 4.0 percent in February, seeing no change from January. The U.S. rate remained at 4.1 percent this month.

• The state’s seasonally adjusted labor force participation rate was 63.6 percent in February. • Texas’ seasonally adjusted LAUS employment was up 38,800 from last month. • Summarizing the not seasonally adjusted estimates, the Texas unemployment rate dropped one-tenth of a percent

to 4.1 percent from January to February. This was seven-tenths of a percentage point lower than the unemployment rate in February 2017. Over the previous five years, the unemployment rate has averaged a decrease of one-fifth of a percentage point from January to February.

10 Largest States' Unemployment Rates Florida Texas Texas California Georgia North Carolina Ohio New York Illinois Michigan Pennsylvania 3.0%

OTM Increase OTM Decline Current Rate

3.5%

4.0%


4.5%

5.0%

5

LOCAL AREA UNEMPLOYMENT STATISTICS Substate Areas (Not Seasonally Adjusted)

County Unemployment Rates

County Highlights

• Unemployment

rates varied considerably across counties, ranging from a low of 1.9 percent in Hartley County to a high of 11.4 percent in Starr County.

• Thirty counties had an unemployment rate of 3.0 percent or less.

• Morris

County experienced the largest unemployment rate decrease of 4.1 percentage points over the year.

• In February 2018, 100 of the 254 counties

had an over-the-month decrease in their unemployment rates. Sixty-four counties saw no change, while 90 counties increased.

3.9% and below 4.0% to 4.9% 5.0% to 5.9% 6.0% to 6.9% 7.0% and above

• Over the year, the civilian labor force increased

in 161 counties. One county was unchanged over the year, while the other 92 counties in the state experienced a decline.

Texas Metro Areas Ranked by Unemployment Rate Rank 1 2 3 3 5 6 7 8 8 10 10 12 13 13

Area Midland Amarillo Austin-Round Rock College Station-Bryan Lubbock Odessa San Angelo San Antonio-New Braunfels Sherman-Denison Abilene Wichita Falls Dallas-Fort Worth-Arlington Tyler Waco

Rate

Rank

Area

Rate

2.5 2.9 3 3 3.1 3.2 3.3 3.4 3.4 3.5 3.5 3.7 3.8 3.8

15 16 0 17 0 18 18 20 21 22 23 24 25

Laredo Killeen-Temple Texas Victoria United States El Paso Longview Houston-The Woodlands-Sugar Land Texarkana Corpus Christi Brownsville-Harlingen Beaumont-Port Arthur McAllen-Edinburg-Mission

3.9 4.1 4.1 4.3 4.4 4.5 4.5 4.7 4.8 5.5 6.7 6.8 7.1

Metro Area Highlights

• Three MSAs in Texas experienced an over-the-month increase in their unemployment rate in February, 12 MSAs experienced a decrease and 10 MSAs experienced no change.

• Over the year, all Texas MSAs saw a decrease in their unemployment rate, with eight experiencing a decrease of one percentage point or more. Odessa experienced the largest over-the-year change, dropping 2.2 percentage points.


6

CURRENT POPULATION SURVEY 12-Month Moving Average Unemployment Rates

Texas Unemployment Rates by Demographic Gender (age 16+)

Feb 2018

Jan 2018

Feb 2017

Female

4.3%

4.4%

4.4%

Male

4.0%

4.1%

5.0%

Age (16+)

Feb 2018

Jan 2018

Feb 2017

Age 16-19

12.1% 11.9% 14.7%

Age 20-24

6.5%

7.0%

8.5%

Age 25-34

3.9%

4.2%

5.2%

Age 35-44

3.8%

4.0%

3.4%

Age 45-54

2.7%

2.6%

3.2%

Age 55-64

3.7%

3.5%

3.3%

Age 65+

3.2%

3.5%

4.1%

Jan 2018

Feb 2017

Race (age 16+)

Feb 2018

White

3.8%

3.8%

4.3%

Black

6.9%

7.0%

7.3%

Hispanic

4.5%

4.6%

5.1%

Highlights

• The unemployment rate for males declined by 1

percentage point over the year to a rate of 4.0 percent, while the rate for women decreased by one-tenth of a percentage point to 4.3 percent.

• The veteran unemployment rate was steady over the month at a rate of 3.8 percent.

• Individuals

with some College education or associate degree share the same unemployment rate as those with less than a High School Diploma. Those with a Bachelor’s degree and higher continue to have a lower unemployment rate than those with a High School Diploma or less.

• Of the new entrants into Texas’ labor force in February, more were women (22,800) than men (22,400).

• The number of people not in the labor force

because they are discouraged over job prospects in Texas stands at 33,900, down from a level of 38,100 a year ago.

Unemployment Rates by Race 8% 7% 6% 5% 4% 3%

Other Categories (age 18+) Veterans

Education (age 25+)

Feb 2018 3.8% Feb 2018

Jan 2018 3.8% Jan 2018

Feb 2017

2% 1% 0%

3.8%

4.1%

4.5%

5.6%

High School Diploma

4.5%

4.6%

5.0%

Some College or Associate Degree

4.1%

4.0%

3.4%

Bachelor's Degree or Higher

2.3%

2.4%

2.9%

Black

Previous Year

Feb 2017

Less than High School

White

Hispanic

Previous Month

Feb 2018

Unemployment Rates by Education 6% 5% 4% 3% 2% 1% 0%

Less than HS

HS Diploma

Previous Year

Some College or Associate Degree

Previous Month

Bachelor's Degree or Higher

Feb 2018

Download all LAUS excel data sheets. Labor Market and Career Information

7

HELP WANTED ONLINE Statewide Online Job Postings Data (Seasonally Adjusted)

1,100

450

1,000

400

900

350

800

300

700

250

600 500

200

400

150

Unemployed

# OF ADS (THOUSANDS)

# OF UNEMPLOYED (THOUSANDS)

Texas Labor Supply vs. Labor Demand

HWOL

Highlights

• Online advertised vacancies decreased by 15,992 to 319,987 in February, according to The Conference Board Help Wanted OnLine® (HWOL) Data Series.

• The February Supply/Demand rate stands at 1.7 unemployed for each advertised vacancy with a total of 224,137 more unemployed workers than the number of advertised vacancies.

Top Employers by Postings

Top Occupations by Postings

Employer

Feb 2018

Jan 2018

HCA - The Healthcare Company

3,673 3,582

Robert Half International

3,569 3,286

AutoZone, Inc

2,370 2,361

Marriott

2,189 1,377

IBM

2,155 1,752

The University of Texas System

1,990 1,939

Lowe's

1,945 1,964

Randstad

1,884 1,605

ACCENTURE

1,678 1,468

Ascension Health

1,671 1,390

Occupation

Feb 2018

Jan 2018

Registered Nurses Heavy and Tractor-Trailer Truck Drivers Retail Salespersons First-Line Supervisors of Retail Sales Workers Software Developers, Applications

14,986 15,291

Customer Service Representatives Maintenance and Repair Workers, General First-Line Supervisors of Food Preparation and Serving Workers First-Line Supervisors of Office and Administrative Support Workers Computer Systems Analysts

5,944 5,457


13,440 12,439 8,519 8,744 8,198

7,391

7,427 6,185

5,851 5,081 5,495 4,844 5,392 4,843 4,864 3,861

8

EMPLOYMENT NEWS Media Update

Job Gains DFW Company to Add More Employees

Dallas Business Journal IRVING, TX—ABM Industries, Inc. is consolidating some of its Dallas-Fort Worth operations into a new facility in Irving that will house 200 employees. A company representative told the Dallas Business Journal that the company projects hiring between 200-300 additional people at the facility within five years. ABM is a facility solutions company that reported nearly $5.5 billion of revenue in its fiscal year that ended October 31, 2017. The company is investing about $500,000 into improvements of the new facility in Irving, according to Doug Smyers, senior vice president of ABM Building Services. ABM will occupy just under 30,000 square feet and is expected to move into its new building this month.

Company Moving HQ to Cedar Park

Austin Business Journal AUSTIN, TX—An energy-technology company that aims to cut fuel use in the trucking industry plans to employ hundreds of workers in Cedar Park after moving its headquarters from the Pittsburgh area to the Central Texas suburb of Austin. The Cedar Park City Council approved a $1.27 million incentive agreement between the Cedar Park Economic Development Corporation and Hyliion Inc. Randall Malik, Cedar Park’s assistant economic development director, said the company will ramp up to 229 workers in about four and a half years with an average annual salary of $90,000. Hyliion designs, manufactures and installs hybrid suspension systems for big rigs, touting them as fuel savers that can also reduce carbon dioxide emissions.

Job Losses

Healthcare Company to Cut 700

Dallas Morning News DALLAS, TX—About 700 more jobs will be cut at Dallas-based Tenet Healthcare by the second quarter as the nation’s third largest hospital operator pushes forward with a $250 million cost-cutting effort. The layoffs, which are expected to mainly affect staff in hospital operations and corporate positions that support those facilities, are in addition to the 1,300 jobs the for-profit hospital chain announced it would cut last year. Last October, Tenet announced a $150 million cost reduction plan and eliminated 1,300 jobs, including an entire level of regional management in its hospital segment, its largest sector. Affected staff were notified last year. Tenet later expanded its cost-cutting effort by an additional $100 million. The total number of jobs cuts will now reach about 2,000 by the end of the year.

Manufacturer Lays Off Nearly 200

Dallas Business Journal ENNIS, TX—Cenveo Inc., a specialty manufacturer, laid off 192 people at its facility in Ennis last month, according to the Texas Workforce Commission. The Stamford, Connecticut-based maker of envelopes and prescription bottle labels filed for Chapter 11 bankruptcy in early February. Ennis is located about 35 minutes south of Dallas along I-45 in Ellis County. The affected plant was an envelope facility, according to the company’s website. The company reported a net loss of $38.6 million for the first nine months of 2017.


9

KEY INDICATORS Total Nonag Annual Employment Growth

Unemployment Rates

Current Month: Texas: 2.3% US: 1.6%

Current Month: Texas: 4.0% US: 4.1%

(Seasonally Adjusted)

(Seasonally Adjusted)

12.0%

5.0% 4.0% 3.0% 2.0% 1.0% 0.0% ‐1.0% ‐2.0% ‐3.0% ‐4.0% ‐5.0% ‐6.0%

10.0% 8.0% 6.0% 4.0% 2.0% 0.0%

TX

Texas

US

U.S.

Source: TWC/Bureau of Labor Statistics

Source: TWC/Bureau of Labor Statistics

Initial and Continued Claims

West Texas Intermediate Crude Oil vs.Texas Rig Count

(3-Month Moving Average)

Current Month: Initial Claims: 64,619 Continued Claims: 621,908 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0

140,000 120,000 100,000 80,000 60,000 40,000 20,000 0

Initial Claims

Continued Claims

Current Month: WTI: $62.23 Texas Rig Count: 476 $160 $140 $120 $100 $80 $60 $40 $20 $0

1,000 900 800 700 600 500 400 300 200 100 0

WTI

Texas Rig Counts

Source: TWC

Source: US Energy Information Administration (EIA) & Baker Hughes

Consumer Price Index Annual Growth

Average Hourly Earnings

(Not Seasonally Adjusted)

(Not Seasonally Adjusted)

Current Month: Dallas-Fort Worth: 2.7% Houston-Galveston: 2.6% 8%

Current Month: Texas: $25.65 US: $26.86 $28 $27 $26 $25 $24 $23 $22 $21 $20

6% 4% 2% 0% ‐2% ‐4%

Dallas

Houston

Source: Bureau of Labor Statistics

TX

US

Source: Bureau of Labor Statistics

Download Key Indicators data in excel. Labor Market and Career Information

10

GLOSSARY CURRENT EMPLOYMENT STATISTICS This Federal/State cooperative program produces estimates drawn from a monthly survey of nonfarm business establishments used to collect wage and salary employment, worker hours and payroll by industry and area. It counts the number of jobs, not of people. Nonagricultural Jobs - The total number of persons on establishment payrolls employed full or part time. Persons on the payroll of more than one establishment are counted in each. Data exclude proprietors, selfemployed, unpaid family or volunteer workers, farm workers, and domestic workers. Government employment only covers civilian employees. Actual or Not Seasonally Adjusted - Describes the data series not subject to the seasonal adjustment process. In other words, the effects of regular, or seasonal, patterns have not been removed from these series. Seasonally Adjusted - The effects of regular, or seasonal, patterns of hiring or layoffs (holidays, weather, etc.) have been removed from these series. These adjustments make it easier to observe the cyclical and other non-seasonal movements in a data series.

LOCAL AREA UNEMPLOYMENT STATISTICS This Federal/State cooperative program produces employment and unemployment estimates by place of residence. Employed - All persons 16 years and over who, during the reference week, (a) did any work at all (at least 1 hour) as paid employees, worked on their own business, profession, or on their own farm, or worked 15 hours or more as unpaid family workers, or (b) were not working but who had jobs from which they were temporarily absent. Each employed person is counted only once, even if the person holds more than one job. Unemployed - All persons aged 16 years and over who had no employment, were available for work, and had made specific efforts to find employment. Includes persons who were waiting to be recalled to jobs from which they had been laid off. Civilian Labor Force (CLF) - All persons classified as employed or unemployed. Unemployment Rate - The unemployed number divided by the civilian labor force number.

HELP WANTED ONLINE

MISCELLANEOUS

The Conference Board's data series provides monthly measures of labor demand (advertised vacancies) at the national, regional, state, and metropolitan area levels.

Metropolitan Division (MD) - A Metropolitan Statistical Area with a population of 2.5 million which is subdivided into smaller groupings is referred to as Metropolitan Divisions (MDs).

Supply-Demand rate - A ratio measuring the number of unemployed persons per Help Wanted Online job opening.

INDICATORS Initial Claims - A count of notices of unemployment received requesting a determination of eligibility for UI benefits. A person can file multiple claims.

Metropolitan Statistical Area (MSA) - A geographic area that contains at least one urbanized center of 50,000 or more population plus adjacent territory that has a high degree of social and economic integration with the core urban location. An MSA in Texas is made up of one or more counties.

Continued Claims - A count of claimants who have qualified for and are receiving UI benefits.

Metro Area - Can refer either to a Metropolitan Statisical Area or a Metropolitan Division. Texas has 25 MSAs, including the Dallas-Fort Worth-Arlington MSA which is subdivided into two MDs.

Consumer Price Index - An index of the variation in prices paid by typical consumers for retail goods and other items.

Workforce Development Area (WDA) - The State of Texas is divided into twenty-eight (28) local workforce development areas.


11

LMCI Director: Doyle Fuchs Editor: Mariana Vega Layout and Design: Mark Lavergne TLMR Contributors: Phil Arnold, Gabriel Guzman, Robert Luttner, Josue Perez, Emmanuel Tomes, Mark Lavergne

Another quality product from Texas Workforce Commission Labor Market and Career Information 101 East 15th Street, Room 0252 Austin, Texas 78778-0001 1-866-938-4444 (512) 936-3278 FAX: (512) 936-3208 www.lmci.state.tx.us Equal Opportunity Employer/Program Relay Texas: 800-735-2989 (TTY) and 711 (Voice) http://www.texasworkforce.org