Texas jobs contracted at a historic nonannualized rate of 9.6 percent, or 1.25 million jobs, in the two months ended in April, according to the Federal Reserve Bank of Dallas’ latest Texas Economic Update.
“Amid widespread lockdowns due to the COVID-19 pandemic, Texas employment declined sharply across all major industries in April, with leisure and hospitality, other services and energy among the worst hit sectors,” said Dallas Fed senior economist Anil Kumar in a video accompanying the report.
The decrease affected all major metro areas, with the steepest drops coming in El Paso, Fort Worth and Austin, followed closely by Houston, San Antonio and Dallas.
While the state unemployment rate is likely to remain elevated, there are signs of an emerging recovery, according to Kumar.
“The Texas Business Outlooks Surveys point to signs of an emerging recovery as perceptions of broader business conditions turn less pessimistic in May and indexes of future activity rebounded into positive territory,” he said.