Texas employment grew at a 3.6 percent month-over-month annualized rate in January, considerably above Texas’ average long-run job growth of 2 percent but slower than the 5.4 percent pace in 2021, according to the Federal Reserve Bank of Dallas’ latest Texas Economic Update.
“Texas economic activity increased in February, particularly in the service sector, as omicron’s negative effect faded,” said Jesus Cañas, Dallas Fed senior business economist.
Amid an ongoing global supply-chain issue, there was improvement within the service sector, as 55 percent of businesses reported supply-chain disruptions or delays compared with 62 percent in November.
Supply-chain disruptions and labor shortages continue pushing prices and wages higher.
“Supply-chain issues, labor shortages and high energy prices are combining to push up prices and wages to record rates of inflation,” Cañas said. “The Russia-Ukraine war and global economic sanctions are adding price pressure and uncertainty to the outlook.”
