Midland unemployment sinks to 1.7 percent Local MSA has state's lowest job rate

The agency's Midland metropolitan statistical area, which consists of Midland and Martin counties, got a boost from the addition of 700 non-farm jobs and an increase in the number of employed residents.

The agency's Midland metropolitan statistical area, which consists of Midland and Martin counties, got a boost from the addition of 700 non-farm jobs and an increase in the number of employed residents. Photo: MRT File Photo Photo: MRT File Photo Image 1 of / 28 Caption Close Midland unemployment sinks to 1.7 percent 1 / 28 Back to Gallery

Midland's labor market revved up in April, powered by an increased job count, more employed Midlanders and fewer unemployed Midlanders.

The Texas Workforce Commission said Friday that unemployment in its Midland metropolitan statistical area fell to 1.7 percent in April from 2.1 percent in March. The rate is below the 1.9 percent recorded last April.

Midland continues to enjoy the state's lowest unemployment, joined by its western neighbor Odessa, which remained in second place with a 2 percent unemployment rate for April.

"It doesn't come as a surprise Midland is 1.7 percent and Odessa 2 percent," Willie Taylor, chief executive officer of the commission's Workforce Solutions Permian Basin, told the Reporter-Telegram.

"We have not had numbers like this since," he said, pausing to consider how far back, then said, "this is amazing."

Midland unemployment

January 2019 2.3 percent

January 2018 2.4 percent February 2019 2.2 percent

February 2018 2.3 percent March 2019 2.1 percent

March 2018 2.3 percent April 2019 1.7 percent

April 2018 1.9 percent

Much of the growth is in mid-size companies, with those employing between 20 and 49 people and 50 to 99 people accounting for more than 30 percent of the growth, almost twice that of companies employing more than 1,000, according to Taylor.

He said Midland's workforce has grown by almost 2,800 since last April, while the number of employed residents has risen by almost 3,000. The number of unemployed fell by 225 over the last 12 months. Even so, Midland's civilian labor force dropped by about 225 from March to April.

"This situation reflects the growth that is now happening. It is transitory, as rates this low are not sustainable and creates some significant channels in virtually every sector," economist Ray Perryman told the Reporter-Telegram by email. "It is particularly difficult for many retail and service sector concerns for which labor is a major cost and there are limited opportunities to recruit in a tight market. Nonetheless, the situation is indicative of a very healthy economy that offers a lot of opportunity to local citizens. Of all the problems that an economy can have, a tight labor is among the best (and far better than the issues raised by a high unemployment rate) -- but it is not without its challenges.

"As the region adjusts to a more permanent and sustainable level of high energy production and makes the necessary investments in education, infrastructure, and quality of place, more workers will be attracted on a long-term basis to relieve the situation," he said.

Taylor agreed that such a tight labor market does bring challenges, noting that such low unemployment continues to escalate wages and it has, indeed been difficult to attract more skilled workers. He said the housing shortage and high cost of living are barriers, and seeing cities, counties, schools and hospitals struggle to provide services is also a deterrent. Some residents have left the area because of those issues, he said.

That is why he and his board continue to focus on growing a local workforce, encouraging junior high and high school students to focus on education, acquiring skills and preparing themselves for entering the workforce.

He said many of the area's training programs, especially those at the junior colleges and University of Texas of the Permian Basin remain full. These include programs for commercial driver's licenses and medical skills. Yet some skilled needs, such as machinists and HVAC technicians, remain only partially filled, he said.

"We also continue to push workers to look at the education side of their careers," he said.

From March to April, Midland added 700 jobs for a growth rate of 0.6 percent. The leisure and hospitality sector dominated, adding 400 new jobs. The mining, logging and construction sector, which includes oil and gas, added 100 jobs, as did the trade, transportation and utilities sector and the government sector.

For the 12 months from April 2018 to April 2019, Midland added 3,800 jobs for a growth rate of 3.6 percent. The dominant sector, mining, logging and construction, added 1,400 jobs, for a growth rate of 3.8 percent. The trade, transportation and utilities sector was second with 800 new jobs, followed by leisure and hospitality with 600 jobs. The manufacturing sector, professional and business services sector and education and health services sector each added 300 jobs, while the financial activities sector added 200. Government was the only sector to lose jobs, dropping 100 during those 12 months.

Statewide, the unemployment rate returned to a record low 3.7 percent, tying its December 2018 record. The state added 28,900 nonfarm jobs, marking 108 consecutive months of employment growth.

While Midland reported the state's lowest unemployment, the highest continued to be in McAllen-Edinburg-Mission at 5 percent.