HillCo Partners Economic Update

Update compiled by HillCoPartners.com Staff

HillCo Partners closely monitors and complies information concerning the current economic climate/trends of the state. The following information has been compiled in order to create a more complete snapshot of the current economic status of Texas.

Labor Market Information

The most recent labor market information for the state is from January 2022:

January 2022 Texas LMI (Texas Workforce Commission):

• Unemployment Rate: 4.8%

• Total Non-Farm Employment: 13,084,600

• Jobs Change Over the Year: 687,500

• Annual Growth Rate: 5.5%

In comparison to December 2021, the unemployment rate has dropped by 0.2% and total non-farm employment has grown by 25,000. In January 2021, the employment rate was 6.8% and total non-farm employment was 12,396,000 (Texas Workforce Commission).

According to the Federal Reserve Bank of Dallas, Texas employment expanded by 3.6% in January after increasing at 3.4% in December. All job sectors saw growth except construction, besides construction which posted declines. Texas regained its pre-pandemic level of employment in December while the U.S. remained 1.4% below. Texas outperformed U.S. job growth overall in 2021 with a 5.1% over the U.S.’s 4.5% growth. These forecasts and data suggest continued economic expansion throughout the state, with the projection for strong output expansion (The Federal Reserve Bank of Dallas, Austin Chamber).

State Sales Tax Revenue

The Comptroller monitors economic data around the state monthly and publishes regular periodicals. Texas Comptroller Glenn Hegar announced at the beginning of February that state sales tax revenue totaled $3.23 billion in February, 28.6% more than in February 2021. The majority of February sales tax revenue is based on sales made in January and remitted to the agency in February. Comptroller Hegar noted that February state sales tax collections continued to surge and reached “an all-time February high, with receipts from all major economic sectors coming in well above year-ago levels”. The growth in tax collections came from robust business and consumer spending “with receipts from most sectors having strongly surpassed pre-pandemic levels” Hegar said. The strongest growth was driven by business spending and the largest increase in receipts was from the oil and gas mining sector. While the oil and gas sector has seen the biggest collections growth, receipts in the sector remain below pre-pandemic levels (Texas Comptroller).

Texas’ Bond Rating

Major rating agencies, Moody’s, Fitch and Standard & Poor’s (S&P), issue ratings that characterize the state’s ability to repay debt. These agencies provide investors with assessments of the trustworthiness of potential investments in the state and possible risks involved. Additionally, highly rated borrowers typically pay lower interest costs. As of August 2021, Texas is top rated by all three of these agencies.

Texas’ Ratings (Texas Bond Review Board)

Fitch: AAA

Moody’s: Aaa

S&P: AAA

About: HillCo Partners was founded by Neal T. “Buddy” Jones and Bill Miller. It is a full-service firm that provides consultancy services for public and government affairs. The firm opened for business in 1998, and today, it is the top-ranked Texas lobbying firm. More information about the firm can be found on their website: www.hillcopartners.com.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes