The recession was declared over in June 2009 and, since then, the U.S. has been in a recovery mode…at least according to the economists and experts. While we continue to hear about the economic challenges we face as we climb back out of the recession, it came to our attention that Texas has led the way in job creation over the past two years.
In a story in the Wall Street Journal, The Federal Reserve Bank of Dallas President, Richard Fisher, explains that 37% of all jobs created in the U.S. since the recession ended were found in Texas. This should come as no surprise to regular readers of this blog. We continuously share story after story about companies relocating or being created right here in Austin. If we looked statewide, the stories would be similar. Texas cities, especially Austin, can be found at the top of “Best Of” list after “Best Of” list.
According to the story, the U.S. has created just over 722,000 jobs since June 2009. Texas added over 265,000 of those jobs. New York was a distant second, having added 98,200 jobs in the same time period. Texas is bigger and has a larger population, but that doesn’t seem to matter in these rankings. California has roughly 50% more people than Texas, but lost 11,400 jobs in the last two years. 18 states had a net loss in jobs since June 2009 and another 4 added fewer than 1,000 jobs.
Why Has Texas Succeeded?
Richard Fisher discussed some of the reasons why Texas leads all states in job creation. It would be impossible to determine the impact of each individual factor, but the overall impact in undeniable. Texas has a business-friendly attitude and free market approach. The government remains small and the overall tax burden on individuals is very low. Having no state income tax is the biggest contributor to our low tax burden.
Texas is a right-to-work state, limiting the role of unions and their financial impact on companies. Tort reform has also led to much lower litigation costs and risks, making the atmosphere much more supportive of employers, who drive the economy.
Even Better Than Before
A more telling statistic is the number of states that have gained jobs when compared to December 2007 when the recession was considered to have started. In that time, only four areas have witnessed positive job numbers: North Dakota, Alaska, Washington D.C., and Texas. Texas has gained 30,800 jobs since the recession began.
Here’s a list of recent blog articles we have posted regarding jobs in Austin:
Rackspace Hiring in Austin, June 9, 2011
Data storage company plans to add 700 employees over the next three years.
Wyoming Springs Building and Hiring, June 2, 2011
Assisted Living and Memory Center breaking ground on new 102-unit facility.
Progressive Insurance Hiring in Austin, May 31, 2011
65 positions planned in sales and customer service.
ProfitFuel Adding Jobs in Austin, May 26, 2011
SEO company looks to bring on 220 new employees in the next 18 months.
Keep an eye on this blog for future job announcements. You can subscribe using the “Subscribe” button in the navigation panel on the right.
To read the complete Wall Street Journal article, please click here.