Texas lost industrial jobs for first time since oil rout began

Houston still ranks #1 in manufacturing jobs, with 259,720 workers, but down 4.1% as oil prices fall over past two years

industrial

Manufacturing, Source: Siemens USA

Manufacturing employment in Texas declined for the first time since the recession, reports the 2016 Texas Manufacturers Register®.

According to MNI’s industrial database, manufacturers in Texas shed 7,379 jobs, or a half per cent, between May 2015 and May 2016.

Texas’ 22,232 manufacturers employ 1,243,071 in the state, reports MNI, ranking it first in the nation for both number of manufacturers and manufacturing jobs.

“Texas’ industrial base skyrocketed as the oil boom took hold, but growth is sputtering with the fall in oil prices,” says Tom Dubin, president of the Evanston, Ill.-based consultancy, said in a press release.

Since April of 2010, Texas has added 81,744 jobs, or 7 per cent, recovering all of the jobs lost during the recession.

“However, with one of the best tax climates in the nation as well as a strong workforce and solid infrastructure, the state continues to be top destination for many new businesses,” said Dubin.

The oil and gas extraction sector has led Texas’ post-recession job gains, growing 90 per cent from 2007-2015, but the industry declined for the first time in a near decade, falling 2.9 per cent over the past twelve months.

The oil/gas extraction sector ranks second in Texas for industrial employment, employing 141,717.

First-ranked industrial machinery also suffered over the past year, losing 4.5 per cent of its jobs, now employing 173,581. Fabricated metals — third in Texas for manufacturing jobs — fell 1.6 per cent to 125,460.

Additional sectors reporting losses included furniture/fixtures, down 3.6 per cent; lumber/wood, down 3.5 per cent; and transportation equipment, down 1.6 per cent.

Industrial employment gains were reported in food products, up 4.8 per cent; paper products, up 1.8 per cent; and primary metals, up 1 per cent.

MNI’s regional data shows employment losses were spread out across four of Texas’ six regions, with East Central Texas shedding 2.7 per cent to 101,384 jobs; Southwest Texas losing 2 per cent to 91,044 workers; the Northeast region losing 1 per cent to 411,669; and the Northwest down 1 per cent to 44,673.

Jobs remained steady in Southeast Texas at 536,353 workers, and climbed 4.1 per cent in West Central Texas to 57,948 jobs.

City data collected by MNI shows Houston ranks first in the state for number of manufacturing jobs, with 259,720 workers, down 4.1 per cent.

Second-ranked Fort Worth accounts for 71,276 jobs, up 1.3 per cent, while third-ranked Dallas is home to 62,763 workers, down 5.7 per cent.

Austin ranks fifth with 53,503 jobs, up 6.7 per cent, and fifth-ranked San Antonio accounts for 47,987 industrial jobs, down 1.4 per cent.

Posted in: USA

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