Job Growth in Texas continues to be robust in 2017. Here are some of the top industries seeing growth.
Job growth in Texas has surged in 2017 due to improvements in the oil and gas industry and optimism among employers that Washington will follow through on promises of regulatory relief in energy production, agriculture, manufacturing, and construction. According to Jarrod Daniel of The Daniel Group, hiring activity throughout Texas is robust and the firm has seen their number of placed positions triple in 2017.
“Since November, we have seen a tremendous increase amongst our clientele in Texas. The activity has been across multiple verticals to include manufacturing, construction, and financial services. We are not anticipating a leveling off at this time due to our mix of industries. In addition, we are still watching the movement in the energy sector which has been slower to recover.”
In the latest surveys by the Dallas Federal Reserve, businesses in the state have reported hiring and sales increases in recent months and all major metros have added jobs in 2017. Economists predict that annual employment growth in the state may accelerate to as much as 2.5 percent. According to the Dallas Fed’s latest report, here are the sectors currently driving the strongest job growth in Texas:
Texas produces ten percent of U.S manufactured goods and the sector’s employment has expanded an annualized seven percent in 2017 after two consecutive years of decline. The growth rate of orders and new orders moved up in April and the three-month moving averages were positive, bolstering the data that confirms improvements in manufacturing demand. Texas factory activity increased at a faster pace in May, reaching its highest level since April 2014, according to business executives responding to the Dallas Fed’s survey. Other measures of current manufacturing activity, including the shipments index and compensation costs, also rose to levels not seen in years. Labor market measures indicated continued employment gains and longer workweeks in May and eighteen percent of manufacturing firms noted net hiring.
The service industry accounts for over sixty percent of the private sector in Texas. Activity in this sector increased in May, according to business executives responding to the Texas Service Sector Outlook Survey. Labor market indicators reflected faster employment growth and slightly longer workweeks as well as an increase in price pressures. The wages and benefits index rose slightly although the great majority of firms continued to note no change in compensation costs.
Texas is the number one producer of oil and natural gas in the nation with twenty-five percent of U.S. refinery capacity and sixty percent of U.S. petrochemical production. Employment in the energy sector has surged nearly eighteen percent in 2017 but still remains below pre-oil-bust levels. Drilling activity rose further with the Texas rig count increasing for the 11th consecutive month to 425. Six-month outlooks continued to improve, especially for oilfield services firms. Nearly seventy percent of services firms and fifty percent of E&P firms reported an improved outlook.