The following is from the September 19, 2009, edition of The Dallas Morning News. Professor Mike Davis of SMU's Cox School of Business provided expertise for this story.
September 22, 2009
By ELIZABETH SOUDER
The Dallas Morning News
Texas lost jobs in August, squelching a glimmer of hope raised in July, when the state economy gained jobs for the first time in nine months.
The Texas Workforce Commission reported Friday that the state lost 62,200 jobs in August, after adding 27,600 in July. The state's unemployment rate rose to 8 percent in August from 7.9 percent in July. The last time Texas' seasonally adjusted unemployment rate hit 8 percent was November 1987, after the oil and real estate busts.
Still, that's better than the national unemployment rate of 9.7 percent in August.
Economists say not to fret. Bumpy data is normal as the economy turns. Plus, unemployment figures reflect decisions managers made months go, not the current economic recovery.
"The bigger picture is: It's going to be a while before jobs pick up, even though the recession is over," said Mike Davis, a professor at Southern Methodist University's Cox School of Business.
"During a recession, firms become more cautious and also become more efficient," he said. "It's not a polite thing to say, but some of the people who lose their jobs, the firms figure out how to do without them."
Read the full story.
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