August 7, 2020
The resurgence of COVID-19 in July appears to have reversed economic gains in Texas that emerged when the virus’ frequency abated in May and June, the Dallas Fed reported Thursday. Employment and other activity had increased strongly from April lows during initial pandemic disruptions in the state.
As a result, the Texas Employment Forecast suggests that on a net basis, the number of jobs will decline 4.8% this year on a December-over-December basis.
Texas employment improved in June—though more slowly than May’s pace—after historic contractions in April. The state recovered about 522,000 jobs in May and June, about 40% of the 1.3 million jobs lost during March and April.
However, the Dallas Fed reported, “weekly unemployment insurance claims suggest continued distress in the state labor market.” Further, high-frequency data suggest that as COVID-19 infections spread in Texas during July, economic growth slowed.
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