Texas unemployment rate falls to historic low — again

An ICOTEX employee works machinery at a plant in Conroe. The state added 45,000 jobs in June and the unemployment rate fell to a historic low. An ICOTEX employee works machinery at a plant in Conroe. The state added 45,000 jobs in June and the unemployment rate fell to a historic low. Photo: Michael Minasi, Staff Photographer / Houston Chronicle Photo: Michael Minasi, Staff Photographer / Houston Chronicle Image 1 of / 1 Caption Close Texas unemployment rate falls to historic low — again 1 / 1 Back to Gallery

Texas’ unemployment rate fell to new record low in June as a strong national economy, robust job gains and slowdown in population growth continues to tighten the local labor market to an unprecedented level.

The unemployment rate slipped to 3.4 percent last month from 3.5 percent in May, the Texas Workforce Commission reported Friday. Nationally, unemployment averaged 3.7 percent in June.

The state added 45,000 jobs in June and more than 315,000 over the past year.

“June’s unemployment rate is a historic win for employers and workers across the state,” Ruth Hughs, the Texas Workforce Commission chair, said in a statement.

The Houston region’s economy added 10,400 jobs last month ,according to government data, and the unemployment rate was 3.8 percent in June, down from 4.6 percent in June 2018.

On HoustonChronicle.com: Texas economy chugs along as economists fret over trade, global slowdown

The historically low unemployment rate in Texas indicates a further tightening of the state’s labor market, which may be good for workers if it continues to pressure employers to raise wages, but can be a challenge to firms trying to hire.

Since 2017, a majority of firms surveyed by the Federal Reserve Bank of Dallas have reported difficulty in finding qualified applicants to fill positions, and some have noted it is a constraint on their business’ growth.

On HoustonChronicle.com: Slowing population growth another challenge to Houston’s economy

Part of the challenge in Texas is slowing migration from other areas of the U.S. The share of the state’s population increase attributable to domestic migration, or those moving to the state from other areas of the U.S., has been cut nearly in half, according to recent analysis by the Dallas Fed. Economists attribute this to a strong national economy — fewer people are inclined to move to Texas for a job if they can find jobs elsewhere.

erin.douglas@chron.com

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