COLLEGE STATION – Initial unemployment insurance claims in Texas decreased to their lowest level since the pandemic hit the economy.
New claims fell to around 34,000 the week ending Oct. 24, reversing a two-week upward trend. This brings the total number of initial claims to 3.73 million, according to data from the U.S. Department of Labor (DOL).
Despite the decrease, new unemployment insurance claims still remain two times higher than pre-pandemic levels.
Continuing unemployment claims decreased for the seventh consecutive week, falling to 618,200 the week ending Oct. 17.
“The fall in both initial and continuing claims point toward improvements in the labor market,” said Real Estate Center Research Economist Dr. Luis Torres. “However, much work still has to be done, especially as continuing claims remain about four times higher than pre-pandemic levels.
“A key driver for the continuing claims is the Pandemic Unemployment Assistance Program, which represents around 44.1 percent of those claims,” said Dr. Torres.
New national unemployment claims also decreased to a new pandemic low. U.S. claims fell for the second straight week to 751,100 the week of Oct. 24, bringing the 32-week total to almost 66 million.
Fewer people in Texas’ major metros filed new unemployment claims during the week ending Oct. 17. New claims also fell in McAllen, Brownsville, and Laredo.
In contrast, claims in El Paso increased as COVID-19 cases have been rising at an alarming rate.
Using data from the DOL and the Employment and Training Administration, the Center has estimated unemployment claims for Texas’ major and border metros since March 21:
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Houston-The Woodlands-Sugar Land, 855,300 claims;
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Dallas-Fort Worth-Arlington, 813,100 claims;
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San Antonio-New Braunfels, 257,500 claims;
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Austin-Round Rock, 218,900 claims;
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McAllen-Edinburg-Mission, 100,400 claims;
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El Paso, 85,200 claims;
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Brownsville-Harlingen, 44,800 claims; and
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Laredo, 26,200 claims.
Layoffs continue in construction as well as in industries that can’t socially distance.
Administrative/support/waste management/remediation services, construction, retail trade, health and social assistance, and accommodation and food services had the most unemployment claims through the week ending Oct. 17.
“The new rise in COVID-19 cases could affect consumer behavior, holding back business activity and maintaining layoffs at a high level,” said Dr. Torres.
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