As crude prices continue to bounce around, the effects of sustained low prices are showing up in slowed job growth throughout Texas.
Related: Low Oil Prices and the Texas Economy
The Texas Workforce Commission reported that the state added 7,100 jobs in February, which was the smallest monthly job gain since October 2011. The biggest hit came in the oil industry where 6,900 jobs were lost in January and February.
Low crude prices means reduced activity and the decreased demand for oilfield equipment and services means layoffs for many companies that service producers. These companies are reporting significant revenue losses as drilling activity and oil prices have steadily declined. Recent layoffs in the service sector include:
- Offshore drilling contractor Seadrill will cut 159 jobs
- Tenaris will cut 133 workers from its northwest Houston plant
- AFGlobal Corp. will cut 89 workers from the company’s North Houston facility
- DHW Well Service Inc. will cut 55 workers from a fabrication shop in Victoria
“Texas ‘continues to be a model for economic growth and prosperity across the nation. However, there is more we can and must do. I am working with the legislature to ensure we pass legislation that lowers the tax burden on businesses, guarantees long-term funding for transportation, and provides economic development opportunities – including in higher education - to further diversify our economy.’ ”
Despite the slowed job growth, the Texas consumer confidence index increased 4.7 percent over this time last year and the state’s unemployment rate dropped to 4.3 percent, down from 4.4 percent in January 2015.
Read more at twc.state.tx