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Running head: JOB STATISTICS IN TEXAS
Job Statistics in Texas
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JOB STATISTICS IN TEXAS
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Job Statistics in Texas
Pursuant to the data collated by the Bureau of Labor Statistics, both the employment and
unemployment rates in the state of Texas posted sustained growth from July 2015 to December
2015. For instance, in July 2015, the civilian labor force stood at 13,055,900 and by December
the same year, the labor force increased to 13,142,400 (“Texas economy at a glance,” n.d). The
unemployment rate, on the other hand, has also had an upward turn over the same period rising
from 574,900 to 620,600. As of December 2015, the unemployment rate in Texas was at 4.6%
while the national unemployment rate held at 5.0%.
In terms of labor force participation, empirical data gathered over the course of the last
couple of decades indicates a significant diminution from 69.4% in 1995 to 63.6% as of July
2015. The number of new jobs created by the state within the first 7 months last year peaked at
78,800. However, a whopping 151,000 jobs were lost within the same period. There are several
reasons for this downturn, principal among them being the current upheavals plaguing the oil
industry. Low oil prices have and continue to impede labor participation, more so in the Houston
Metropolitan. The severity of low oil prices on the economy of Texas is evidenced by the
increasing effects being felt in other sectors such as manufacturing and construction (Isserman,
2012).
Another factor responsible for lowering the labor participation rate is the decline in the
number of women in the civilian workforce (Caputo, 2011). While the question of labor force
diversity affects the nation as a whole, its effects on labor participation rate in Texas is quite
significant. Despite the state being a leader in terms of creating minimum wage jobs,
incongruities in the earnings made by men versus women are some of the most critical
nationally. For example, a woman in Texas makes 79.6 cents for each dollar made by a man.
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This imbalance demoralizes women to the extent of facilitating the lack of interest as far as
climbing the career ladder or getting a new job is concerned. In fact, most of them end up leaving
their jobs altogether, a fact substantiated by the number of formerly employed women in Texas.
The currently reinvigorated interest being experienced in the education sector is also a
major cause of lowered labor force participation rate. The effects of this factor are most prevalent
among the youth. Increased school attendance among young adults, and keeping in mind the fact
that youths make up the largest percentage of the potential labor work force, reduces the
participation rate significantly. In addition, most of the students have increased their school
attendance during summer thus lowering the labor force participation rate even further.
The aforementioned experiences reflect the trend being faced by the rest of the country
albeit with some minor differences. The principal similarity between the states’ and the national
experiences is the gradual decrease in the rate of unemployment. As of January 2016, the
national unemployment rate was at an all-time low of 4.9%. Similarly, the unemployment rate is
Texas posted a gradual decrease within the same month. In terms of labor force participation
rate, the same factors affecting Texans also come into play nationally. The main reason for this
similarity stems from the symbiosis between the state and the national economy. In essence, the
economic shifts being experienced nationally often have a direct effect on the states’ economy
and vice versa (Bowen & Finnegan, 2003).
Contribution to GDP and Economic Growth
1. A woman who makes a living charging for investment advice on her internet website then
marries one of her clients, to whom she now provides free advice.
In this scenario, the immediate ramifications range from reduced personal earnings to
diminished individual contribution to GDP as well as slowed economic growth. The woman pays
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taxes according to her earnings. Consequently, with one less customer, her taxable income will
be lower as compared to her previous income and, therefore, will remit reduced taxes to the
government. The effect of a single woman doing so may seem insignificant. However, with time,
the GDP will eventually post a reduction which can be traced back to the woman’s actions.
Consequently, it is plausible to postulate that the one customer that is married to this woman will
act as a leakage to the GDP since he effectively reduces the woman’s taxable income.
2. A tennis player wins two top professional tournaments as an unpaid amateur, meaning
the tournament sponsor does not have to pay out his share of prize money.
In this case, there will be no plausible effect on both the GDP and economic growth since there
is no leakage nor injection that will occur since the sponsor will pay no prize money.
3. A public utility installs new antipollution equipment in its smokestacks.
At first, the public utility will have to spend money from the governments in order to facilitate
the installation of the antipollution equipment. The money spent will act as a leakage to the GDP
thus the GDP will fall (Barro & Martin, 2004). After the installation of the new antipollution
equipment, it is likely that the people in the area will enjoy a better working environment.
Consequently, it will be possible to increase productivity which will, in turn, lead to economic
growth.
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Reference List
Bowen, W. G., & Finnegan, T. A. (2003). The economics of labor force participation. Princeton,
N.J: Princeton University Press.
Caputo, R. K. (2011). U.S. social welfare reform: Policy transitions from 1981 to the present.
New York: Springer.
Isserman, A. M. (2012). Population Change and the Economy: Social Science Theories and
Models. Dordrecht: Springer.
Texas economy at a glance. (n.d.) Bureau of Labor Statistics. Retrieved from
http://www.bls.gov/regions/southwest/texas.htm#eag_tx.f.4