DALLAS (NEWS RELEASE) – The following is a news release from the Federal Reserve Bank of Dallas:
Economic distress caused by the COVID-19 pandemic has sent the Texas economy into a tailspin, according to the Federal Reserve Bank of Dallas’ latest Texas Economic Update.
“COVID-19 containment measures have led to unprecedented declines in demand and triggered mass layoffs across the state,” said Dallas Fed senior business economist Laila Assanie in a video accompanying the report. “A record 1.6 million Texans filed for unemployment insurance from mid-March through late April, amounting to 11.5 percent of the workforce.”
Layoffs have been widespread across sectors, Assanie noted. Consumer confidence in Texas plunged in April to its lowest level in seven years, according to data from the Conference Board.
“Texas will likely underperform the U.S. this year, in part due to the downturn in energy,” Assanie said. “Employment will fall sharply through mid-year, rebound in the second half of 2020 and end the year down 7.6 percent on a December-over-December basis. This is the first contraction in the Texas economy since 2009.”
- Report: https://www.dallasfed.org/research/economics/2020/0507
- Video: https://www.dallasfed.org/research/economics/2020/0507#tex
- Audio: https://www.dallasfed.org/~/media/Media/media/research/Texas360/txecon3602005
(News release from the Federal Reserve Bank of Dallas)