Texas reclaims jobs lost in pandemic; some metros still trying to catch up - Dallasfed.org Skip to main content News and EventsCareers All Authors Series Topics Economy Economy Data Regional data U.S. data International data Energy data DataBasics Research Data Center (RDC)-- Regional economy Texas New Mexico Louisiana Dallas Fed Surveys Economic analysis Beige Book Economic indicators Texas Economic Update Texas Employment Forecast U.S. Economy Trimmed Mean PCE Market Value of Government Debt Weekly Economic Index International Economy Database of Global Economic Indicators International House Price Database Mexico Update Global Institute Events Conferences Global Perspectives Energy Center for Energy and the Economy Dallas Fed Energy Survey Energy in the Eleventh District Energy Indicators Energy Slideshow Publications Dallas Fed Economics Southwest Economy Southwest Economy Podcast Special reports Working papers Economists Focus areas/topics Community Community Communities blog In-depth reports Small Business Credit Survey Community topics Small business Workforce development Community Reinvestment Act Advance Together initiative Digital access initiative Our people Events Education Education Classroom Resources Building Wealth lesson plans Classroom-ready presentations Federal Reserve Education Publications Building Wealth Everyday Economics Navigate: Exploring College and Careers Student programs Personal finance workshop -- Events Tours information Banking Banking Banker resources Consumer resources Reserves maintenance Risk and surveillance Lending Discount Window Payments & financial services FedNow Financial services Reporting Financial reporting Regulatory reporting Structure reporting (NIC) Contacts Events Publications and reports Dallas Fed Banking Banking Conditions Survey Current Banking Risks Eleventh District Banking Trends Banking and finance articles About us About Us What we do Reserve Banks and the Fed Counties in our district Our branches El Paso Houston San Antonio Holiday schedule Work with us Transparency President Lorie Logan About Lorie Listening in 360° Calendar Public speaking events Our people Leadership team Regional executives Boards of directors Economists Dallas Fed advisory councils Federal Advisory Council Office of Minority and Women Inclusion Speeches Lorie Logan speeches and publications Leadership speeches Request a speaker Connect with us Attend our events Visit our exhibits Help us track the economy Ask a question or find a contact Do business with us News and EventsCareers HomeEconomySouthwest EconomySouthwest Economy, First Quarter 2022 Economy Economy home Data Regional data U.S. data International data Energy data DataBasics Research Data Center BigTex High-Performance Computing Regional Regional economy Texas New Mexico Louisiana Dallas Fed surveys Agricultural Banking Conditions Dallas Fed Energy Texas Manufacturing Texas Service Sector Economic analysis Beige Book Economic Indicators Texas Economic Update Texas Employment Forecast Mexico and border region All regional analysis Southwest Economy U.S. U.S. economy home Trimmed Mean PCE Market Value of Government Debt Weekly Economic Index All U.S. data International Global Institute International economy International House Price Database Database of Global Economic Indicators International data Energy Center for Energy and the Economy Energy research Dallas Fed Energy Survey Energy in the Eleventh District Energy Indicators Energy slideshow Publications Dallas Fed Economics Southwest Economy Special reports Working papers More publications Our people Economists Research analysts Visiting scholars Events Conferences Global Perspectives Seminars Request a speaker Focus areas/topics Southwest Economy, First Quarter 2022 Texas reclaims jobs lost in pandemic; some metros still trying to catch up Juliette Coia and Pia Orrenius As of December 2021, Texas had finally regained the 1.4 million jobs lost in the initial months of the pandemic. But many jobs in the latest count were not the same as the ones lost—and they were not in the same places either. The recovery from the pandemic recession ushered in a massive reallocation of employment between industries with repercussions for different areas of the state. Austin and Dallas–Fort Worth are already well above their prepandemic levels of employment, but Houston, San Antonio and El Paso are not (Chart 1). Downloadable chart In May 2021, Austin became the first Texas metro to regain all jobs lost at the onset of the pandemic. The DFW region reached prepandemic employment levels in July. The boom in high-tech, financial activities, and professional and business services helped Austin and DFW come back sooner than their counterparts along the Gulf Coast and the border. Employment in professional and business services in Austin is 18.0 percent higher than prepandemic levels, and financial activity employment has risen 10.9 percent. Across the state, these two sectors did not experience the same magnitude of growth as they did in Austin. Statewide employment is up 7.0 percent in professional and business services and 4.8 percent in financial activities. In many Texas cities, including El Paso, these sectors have yet to return to February 2020 employment levels. Houston employment declined with the fallout in the energy industry in 2020 when the state’s mining sector lost 28.3 percent of its jobs in seven months. At the end of 2021, energy still trailed other industries statewide and was down 20.3 percent (roughly 45,000 jobs) from prepandemic levels. San Antonio, with its outsized dependence on tourism and business travel, has also been slower to come back, reflecting the later-to-recover leisure and hospitality sector. El Paso faced a series of obstacles starting with the U.S.–Mexico border shutdown beginning in March 2020. The 20-month closure led to steep declines in trade and the number of cross-border shoppers. Overall, Texas job growth over the past two years has been robust, and the state is one of only four (including Arizona, Idaho and Utah) to have regained all jobs lost during the pandemic. Part of Texas’ employment growth can be attributed to a large inmigration increase. Migrants Flocked to Texas Relocation to Texas accelerated during the pandemic. Net migration was up 60 percent compared with prepandemic levels, increasing from 109,000 in the five quarters preceding the pandemic’s onset in February 2020 to 174,000 people in the five quarters after the pandemic began.[1] Austin and Dallas–Fort Worth were the two most popular destinations. Dallas–Fort Worth drew 64,000 new residents, while Austin picked up roughly 48,000. The large gains in migration likely bolstered job growth in these metros, which have sizable high-tech sectors. In Austin, the number of migrants from Silicon Valley (San Jose, California) and San Francisco doubled since the pandemic began. Combined, the two Bay Area metros were the largest source of Austin’s newcomers. In Houston, in-migration increased substantially over the course of the pandemic. Net in-migration to Houston was almost five times prepandemic levels, increasing from 4,000 people in the five-month prepandemic period to roughly 25,000 people during the pandemic. However, these numbers are quite small relative to the metro’s population of roughly 7 million people. Notes “Largest Texas Metros Lure Big-City, Coastal Migrants During Pandemic,” by Wenli Li and Yichen Su, Federal Reserve Bank of Dallas Southwest Economy, Fourth Quarter, 2021, www.dallasfed.org/research/swe/2021/swe2104/swe2104b.aspx. Share this About the Authors Juliette Coia Coia is a research assistant in the Research Department at the Federal Reserve Bank of Dallas. Pia Orrenius Orrenius is a vice president in the Research Department at the Federal Reserve Bank of Dallas. Southwest Economy is published quarterly by the Federal Reserve Bank of Dallas. The views expressed are those of the authors and should not be attributed to the Federal Reserve Bank of Dallas or the Federal Reserve System. Articles may be reprinted on the condition that the source is credited to the Federal Reserve Bank of Dallas. Full publication is available online: www.dallasfed.org/research/swe/2022/swe2201. In This Issue Looking Back: Shale Oil Boom Gave Permian Basin a Second Life Students Cut College During Pandemic; Their Return Is Uncertain Turbulent Economy Tests Texans Who Lack Financial Knowledge On the Record: Cross-Border Manufacturing Rises from Pandemic Lows Spotlight: New Mexico Marijuana Legalization’s Costs,Benefits Remain Unclear Around the Region: Texas Reclaims Jobs Lost in Pandemic; Some Metros Still Trying to Catch Up Complete Issue (Print version) Southwest Economy Home Archive By topic Subscribe for email alerts More Like This Texas Employment Forecast, July 17 Read more International comparisons show AI effect on productivity Read more Work from Home and Migration Read more Texas Employment Forecast, June 22 Read more Quick links Global Institute Building Wealth Banking blog Communities blog Economics blog Visit us Publications About us Transparency Holiday schedule Careers Office of Minority and Women Inclusion Contact us Frequently asked questions Locations and teams Media relations Vendors and suppliers Website feedback Stay informed Get analysis, research, resources and event information delivered directly to your inbox. 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