The recovery of the Texan economy is still on a solid course, but the pace of growth has slowed since March, economists at the Federal Reserve Bank of Dallas said.
Labor shortages and supply chain problems are two main factors contributing to the slowdown in growth based on May figures, according to Laila Assanie, senior business economist and Carlee Croker, analyst at May. research. said in a report Thursday.
“The Texas economy is on track for a solid recovery, although the pace of growth has slowed due to supply issues, such as difficulty finding workers and large-scale material shortages.” , said Assanie.
The report found that other indicators, such as unemployment claims and consumer spending as well as daily COVID-19 cases, still show continuous improvement.
The Federal Reserve Bank of Dallas released employment figures in May last Friday, with Texas creating 26,100 jobs in May and dropping its unemployment rate from 6.7% to 6.5%.
But, according to Thursday’s report, high demand for labor exceeds supply, with half of Texas businesses trying to fill vacancies.
Majority of these companies find it difficult to search, especially for “low-skilled positions,” according to May-based report Texas Business Outlook Surveys The data.
After the May figures were released, the US Federal Reserve’s employment forecast fell to 4.1%, suggesting that all jobs lost since the start of the COVID-19 pandemic are unlikely to be recovered by the end of 2021.
Federal unemployment benefits are also expected to end for Texans after June 26, after the state withdrew from federal COVID-19 unemployment assistance.
The report estimates the funding withdrawal to be $ 2.9 billion per month, but also says the impact is still unclear, with labor shortages improving but overall spending. likely to decrease.