COLLEGE STATION – Texas’ initial unemployment claims increased to 36,700 the week ending Oct. 31 after decreasing to their lowest number the previous week.
This brings the total since March 21 to 3.77 million, according to data from the U.S. Department of Labor (DOL).
A key driver of the increase was the growth in initial claims filed under the Pandemic Unemployment Assistance program, which accounted for 5,500 of the claims.
According to Real Estate Center Research Economist Dr. Luis Torres, the claims increase was accompanied by a current rise in COVID-19 cases, particularly in El Paso, which has seen a surge both in cases and unemployment claims.
The number of Texans who continue to claim unemployment insurance decreased for the eighth straight week to 574,700 the week ending Oct. 24, the lowest level since the pandemic hit the economy. However, that improvement is slowing.
“The rate of decline in the number of people filing for initial and continuing unemployment has decreased, possibly reflecting a slowing in the labor market,” said Torres.
“Unemployment insurance claims remain two times higher than pre-pandemic levels, while continuing claims remain about four times higher, indicating that still much work has to be done in the labor market,” he said.
Fewer people in Austin, Dallas-Fort Worth, and Houston filed new unemployment claims during the week ending Oct. 24. In contrast, San Antonio claims increased during the same week.
New claims increased along the Texas border, rising in El Paso, McAllen, and Brownsville, while decreasing in Laredo. As mentioned before, El Paso has seen a surge in COVID-19 cases, pushing up initial claims for two straight weeks.
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, 863,600 claims;
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Dallas-Fort Worth-Arlington, 821,000 claims;
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San Antonio-New Braunfels, 259,700 claims;
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Austin-Round Rock, 220,500 claims;
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McAllen-Edinburg-Mission, 101,600 claims;
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El Paso, 86,600 claims;
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Brownsville-Harlingen, 45,300 claims; and
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Laredo, 26,400 claims.
The rise in COVID-19 cases could affect consumer behavior, holding back business activity and maintaining layoffs, which continue in the industries that can’t socially distance as well as in construction.
Administrative/support/waste management/remediation services, construction, healthcare and social assistance, retail trade, and accommodation and food services represented the sectors with the most unemployment claims through Oct. 24.
Last week, new national unemployment claims decreased for the third straight week to 751,000, the lowest since the pandemic hit the economy. This brings the 33-week total to 66.7 million.
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