The document analyzes employment data from Texas and other states. It shows that Texas has significantly outpaced other large states in job creation. While some smaller states have lower unemployment rates, Texas compares favorably to more populous states. Texas's strong economy and job growth can be attributed to factors like international trade through ports and border cities, business relocations to major cities, and companies moving headquarters from other states to Texas. The document suggests Texas may continue gaining economic share from states like California and New York if current trends persist.

1. 7/11/11

2. Employment Data
• This graph shows how
Texas has far outpaced
its nearest competitors
in job creation (New
York and Pennsylvania)
and simply
outperformed the rest
of the states in job
creation.
• Source for this graph:
Wall Street Journal Online
.
http://online.wsj.com/article/SB1000142405270230
4259304576375480710070472.html

3. Employment Data
• This graph shows the
unemployment rates
for all 50 states. Texas is
highlighted in red.
• Source for all
subsequent data:
Bureau of Labor
Statistics.
• Click to see the current
unemployment rate
nationwide.
http://www.bls.gov

4. Employment Data
• As you can see, there
are other states that
have lower
unemployment rates
than Texas.
• But when compared to
the more populous
states, you can see
where Texas’
unemployment rate
stands. Click to see the
comparison.

5. Employment Data
Think About It
• Although North
Dakota has a lower
unemployment rate
than Texas, it still trails
in terms of new jobs
created. Why do you
think this is the case?

6. Employment Data
• Since Texas is one of a
handful of states that
don’t have a state
income tax, it’s worth
looking at the effect
that the state income
tax rate has on
unemployment.
• There is a rough
correlation between
the two, although some
of the states with no
state income tax still
have high
unemployment. Source for tax data: http://www.taxadmin.org
Texas

7. Employment Data
• The sales tax in Texas,
while not the lowest in
the country, is in the
middle range.
• A graph of sales tax rate
vs. unemployment rate
also shows a rough
correlation. But, as you
can see, having a very
low sales tax rate is not
a guarantee of lower
unemployment.
Source for tax data: http://www.taxadmin.org
Texas

8. Employment Data
• By far, the biggest
driver of Texas’ job
growth has been the
growth of its economy.
• This graph shows the
GDP growth by state,
and Texas is highlighted
in red.
• Compare the equally
high bars for California
and New York, yet
those state have not
created as many jobs as
Texas. Why?
Source: http://www.census.gov
TexasNew York
California

9. Employment Data
There are a number of
factors contributing to
Texas’ strong economy.
SAN ANTONIO
EL PASO
• San Antonio and El
Paso are hubs of
international
commerce due to
NAFTA.
• Houston is a major
U.S. port.
HOUSTON
• Businesses have
relocated to cities like
Austin and Dallas/Ft.
Worth.
DALLAS/
FT. WORTH
AUSTIN

10. Employment Data
• In fact, part of Texas’
growth has come at the
expense of other states
when companies move
their headquarters from
one state to another.
Source: http://www.census.gov
TexasNew York
California

11. Employment Data
• If this trend continues,
it will be interesting to
see the effect on the
GDPs of Texas,
California, and New
York in the coming
years.
Source: http://www.census.gov
TexasNew York
California