Texas added more new jobs than any other state in October

A Houston house is repaired in October after Hurricane Harvey flood damage. Strong Texas job gains are expected for the month by the Federal Reserve Bank of Dallas. A Houston house is repaired in October after Hurricane Harvey flood damage. Strong Texas job gains are expected for the month by the Federal Reserve Bank of Dallas. Photo: Jon Shapley /Houston Chronicle Photo: Jon Shapley /Houston Chronicle Image 1 of / 1 Caption Close Texas added more new jobs than any other state in October 1 / 1 Back to Gallery

Texas private-sector employers hired at a steady pace in October, adding 25,050 new jobs, according to new data Wednesday from payroll processor Automatic Data Processing Inc.

That compares with 23,550 jobs added in August and a six-month average of 25,380, ADP’s Regional Employment Report said.

The state’s hiring accounted for 10.7 percent of the 235,000 new private-sector hires made in October across the U.S., the most of any state. New York accounted for 8.3 percent and California accounted for 7.2 percent of all new jobs added.

Based on ADP’s data, the Federal Reserve Bank of Dallas on Wednesday estimated that the state added 19,400 private-sector jobs overall in October, a 2.3 percent annualized job growth rate vs. ADP’s 2.9 percent annualized rate, said Dallas Fed Senior Economist Keith Phillips in San Antonio.

The Dallas Fed will report its own October employment data — which includes private- and public-sector employment — on Nov. 17. ADP’s survey excludes government workers.

But Phillips said the Fed’s normal analysis of ADP data likely will be inaccurate because of Hurricane Harvey, which hit the Texas coast on Aug. 25 and caused widespread flooding and wind damage.

Phillips noted that the ADP report for September failed to pick up the effect of Hurricane Harvey, a month when Texas actually lost jobs overall. That is because ADP’s payroll services are mostly used by large employers, so it doesn’t necessarily capture the restaurants and small businesses that were idled by the storm.

Therefore, Phillips said, the October ADP report likely also will not pick up the expected job bounce back as some jobs are restored and others, such as home remodeling, are added.

Phillips predicted that the Fed’s report for November will show a 5 percent to 6 percent annualized uptick in jobs statewide, including private-sector and government jobs.

In future months, Phillips said, the ADP reports will revert to being a more accurate representation of private-sector hiring. “It will likely show a statewide job growth of 2.5 percent to 3 percent,” Phillips said.

According to ADP’s Texas report, the professional and business services sector added the most jobs last month: 4,000. Oil field and construction employers added 2,900. Manufacturers added 2,000 jobs, and the trade, transportation and utilities sector went up by 1,200 jobs.

More broadly, the services sector added 20,100 jobs in October, while the goods-producing sector added 4,900 jobs, according to ADP.

dhendricks@express-news.net