Oil industry in Texas still trimming jobs
Sector lost 2,000 last month as economy slows globally; state remains strong overall
Texas energy companies are cutting their workforces amid sluggish growth in the sector, according to jobs data from the Texas
Workforce Commission released Friday.
Texas’ mining and logging sector, which is dominated by the oil and gas industry, was down 2,000 jobs in October from September. The sector has shed jobs through much of the second half of 2019.
Other indicators point to a slowdown for Texas oil as well. The number of active oil and gas rigs in the U.S. fell by 11 this week as companies continue to pull rigs from operation because of a slowing global economy that has pressured energy demand and kept oil prices in a slump — for the most part, sitting between $50 and $60 per barrel. At the same time, as producers’ profits have suffered, investors have lost patience with the shale industry, known for overspending, and pulled their money out.
The state’s overall economy, however, remains healthy. Texas’ jobless rate held steady in October at a historic low of 3.4 percent as employers added more than 30,000 jobs. Over the year, the state added about 297,000 jobs, an increase of 2.4 percent.
“October labor market data is
great news for Texas workers,” said Julian Alvarez, the TWC commissioner representing labor. “Their skills continue to be in high demand.”
8,000 jobs added here
In the Houston region, employers added 8,000 jobs from September, according to the TWC. Over the year, the local economy has added 80,600 jobs, a growth of 2.6 percent.
The local unemployment rate was 3.5 percent.
The energy slowdown hasn’t appeared to have reached the office towers of Houston yet. Employment in oil and gas extraction grew by 2,900 jobs, or about 8 percent, over the year. But some experts are skeptical that the pace will stay positive much longer.
“The jobs in the Permian are going to go first, but at some point that’s going to
temper hiring here,” said Parker Harvey, an economist at Workforce Solutions. “How many additional lawyers, accountants and engineers do you really need (in Houston) when oil is in such a tight range?”
Other sectors stayed on trend. The local retail sector continued to decline, shedding 3,000 jobs since the same time last year. Retailers have been squeezed around the nation by online giants such as Amazon, which are able to slash product prices and undercut traditional brick-andmortar companies.
The health and educational services sector continued to grow, adding 10,100 jobs over the year. Manufacturing added 9,100 jobs and trade, transportation and utilities added 4,000.