Employment and Employment Trends in Texas and Workforce Participation (Essay Sample)

Job Statistics in Texas
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Job Statistics in Texas
Pursuant to the data collated by the Bureau of Labor Statistics, both the employment and unemployment rates in the state of Texas posted sustained growth from July 2015 to December 2015. For instance, in July 2015, the civilian labor force stood at 13,055,900 and by December the same year, the labor force increased to 13,142,400 ("Texas economy at a glance," n.d). The unemployment rate, on the other hand, has also had an upward turn over the same period rising from 574,900 to 620,600. As of December 2015, the unemployment rate in Texas was at 4.6% while the national unemployment rate held at 5.0%.
In terms of labor force participation, empirical data gathered over the course of the last couple of decades indicates a significant diminution from 69.4% in 1995 to 63.6% as of July 2015. The number of new jobs created by the state within the first 7 months last year peaked at 78,800. However, a whopping 151,000 jobs were lost within the same period. There are several reasons for this downturn, principal among them being the current upheavals plaguing the oil industry. Low oil prices have and continue to impede labor participation, more so in the Houston Metropolitan. The severity of low oil prices on the economy of Texas is evidenced by the increasing effects being felt in other sectors such as manufacturing and construction (Isserman, 2012).
Another factor responsible for lowering the labor participation rate is the decline in the number of women in the civilian workforce (Caputo, 2011). While the question of labor force diversity affects the nation as a whole, its effects on labor participation rate in Texas is quite significant. Despite the state being a leader in terms of creating minimum wage jobs, incongruities in the earnings made by men versus women are some of the most critical nationally. For example, a woman in Texas makes 79.6 cents for each dollar made by a man. This imbalance demoralizes women to the extent of facilitating the lack of interest as far as climbing the career ladder or getting a new job is concerned. In fact, most of them end up leaving their jobs altogether, a fact substantiated by the number of formerly employed women in Texas.
The currently reinvigorated interest being experienced in the education sector is also a major cause of lowered labor force participation rate. The effects of this factor are most prevalent among the youth. Increased school attendance among young adults, and keeping in mind the fact that youths make up the largest percentage of the potential labor work force, reduces the participation rate significantly. In addition, most of the students have increased their school attendance during summer thus lowering the labor force participation rate even further.
The aforementioned experiences reflect the trend being faced by the rest of the country albeit with some minor differences. The principal similarity between the states’ and the national experiences is the gradual decrease in the rate of unemployment. As of January 2016, the national unemployment rate was at an all-time low of 4.9%. Similarly, the unemployment rate is Texas posted a gradual decrease within the same month. In terms of labor force participation rate, the same factors affecting Texans also come into play nationally. The main reason for this similarity stems from the symbiosis between the state and the national economy. In essence, the economic shifts being experienced nationally often have a direct effect on the states’ economy and vice versa (Bowen & Finnegan, 2003).
Contribution to GDP and Economic Growth
1 A woman who makes a living charging for investment advice on her internet website then marries one of her clients, to whom she now provides free advice.
In this scenario, the immediate ramifications range from reduced personal earnings to diminished individual contribution to GDP as well as slowed economic growth. The woman pays taxes according to her earnings. Consequently, with one less customer, her taxable income will be lower as compared to her previous income and, therefore, will remit reduced taxes to the government. The effect of a single woman doing so may seem insignificant. However, with time, the GDP will eventually post a reduction which can be traced back to the...