The reasons why Texas helped lead the U.S. out of recession are the same reasons why it’s now a sore spot for the economy, report Wall Street Journal staffers Erin Ailworth and Ben Leubsdorf.
Between 2010 and 2014, one out of every seven new American jobs added were in Texas thanks to years of petroleum prosperity. But since the end of 2014, the state has lost more than 91,000 jobs in oil-and-gas extraction and mining-support activities, nearly half of the total national job losses in those categories. Texas payrolls were up 1.6% in August from a year earlier, trailing the national pace of job growth for the 11th consecutive month.
Oil prices have dropped from more than $100 a barrel in June 2014 to roughly $50 today.
The hiring slowdown in Texas accounts for some of the national deceleration in job creation since last year. And the Texas-centered energy bust has helped drive a national pullback in business spending on structures and equipment, a drag on overall economic growth.