Jobs

Gabriel C. Pérez / KUT

At 3 percent, the unemployment rate in Central Texas is one of the lowest in the country. But most of the jobs driving that low rate require higher skilled workers, and roughly two-thirds of job seekers here don't fall into that category.

Pavel Mezihorak for KUT

Austin has been called the most economically segregated city in the nation. Now, the Austin City Council is taking steps to try and bring more jobs to the East Side, an area that’s historically been home to minority populations and the economically disadvantaged.

What Does Texas Manufacturing Need To Bounce Back?

Sep 30, 2015
gratisography/Pexels

From Texas Standard: More than 28,000 jobs – that's what the manufacturing sector of Texas lost in the month of August, according to the Federal Reserve Bank of Dallas' manufacturing outlook report.


The nation's unemployment rate moved up a bit in the month of July, to 6.2 percent, as more Americans who'd been sitting on the sidelines started looking for work, according to the latest monthly report released by the Bureau of Labor Statistics. Nonfarm payrolls increased by 209,000 jobs, a bit less than economists had expected.

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The global boom in energy production driven by fracking and horizontal drilling is leading to a shortage of skilled workers. A new report by the human resources firm Mercer says two-thirds of oil and gas companies are now poaching employees from their competitors.

"The industry seems inclined when an individual is trained and developed by a competitor to, especially in the first five years of employment, go after that key talent, as opposed to training and developing their own,"  says Philip Tenenbaum, a senior partner at Mercer. 

He says in some cases, the practice has become quite overt.  

websense.com

Update: Dropbox and Websense will receive economic incentives to expand in Austin.

The Austin City Council voted 5-2 today to offer the two tech companies approximately $700,000 in incentives. The money comes on top of $6 million from the Texas Enterprise Fund. 

Ben Philpott, KUT News

Gov. Rick Perry defended his efforts to bring jobs from other states to Texas on Thursday – and told critics that if they can't stand competition, they should get out of the game.

Perry will visit Maryland on Sept. 18. He has already spent nearly $500,000 on radio and TV ads touting Texas' low taxes and regulation in the state. Maryland is the sixth state Perry has visited this year, following California, New York, Connecticut, Missouri and Illinois.

A business in Austin is laying off hundreds of employees. OneWest Bank has notified the Texas Workforce Commission that intents to lay off more than 700 employees in Austin.

The California-based company is a mortgage services provider with offices in the Domain complex.

flickr.com/bgottsab

Texas added almost 19,000 jobs last month, the most of any state in the country - according to a report by the payroll and benefits company ADP.

More than 1,800 jobs will be added to June’s total.

Caleb Bryant Miller for KUT News

More than 22 percent of Austin area jobs require specialized STEM skills. STEM stands for Science, Technology, Engineering and Math.

A study released by the Brookings Institution today shows Austin’s percentage of STEM jobs in 2011 was slightly higher than the national average of 20 percent.

flickr.com/jimnix

Austin’s economy added 30,500 jobs over the last year. The latest employment report shows the jobless rate dropped to 5.1 percent last month from 5.6 percent in April 2012. 

The recent job growth happened as more people were moving to the Austin-area looking for work. The civilian labor force grew by more than 27,000 in the past 12 months.

(Most recent update: 10 a.m. ET.)

The nation's jobless rate edged down to 7.5 percent in April from 7.6 percent in March and employers added 165,000 jobs to their payrolls last month, the Bureau of Labor Statistics reported Friday morning.

Jeff Heimsath for KUT News

Austin’s unemployment rate went down slightly from February to March – to 5.3 percent. The state rate was about one point higher (6.4 percent, seasonally adjudged; 6.3 percent, not seasonally adjusted).

Both numbers are well below the national rate for March: 7.6 percent.

Both the state and local rates are also well below what they were in March 2012 (7 percent and 6 percent, respectively).

flickr.com/kandyjaxx

The City of Austin is hosting its third annual Career Expo today at the Palmer Center.

The event will feature over one hundred employers and local agencies including  Austin Fire Department, Austin Independent School District, Dell, Time Warner Cable, Grande Communications and Whole Foods.

Last year more than 3,500 people attended the Career Expo that offers almost 2,000 job openings. 

There were 236,000 jobs added to payrolls in February — many more than expected — and the jobless rate unexpectedly dropped by two-tenths of a point, to 7.7 percent, the Bureau of Labor Statistics reported Friday.

What's today's big jobs report say?

The U.S. economy lost 2.8 million jobs jobs in January.

What?!

Don't panic. The U.S. economy loses millions of jobs every January, in good times and bad, largely because tons of seasonal holiday jobs always wind down after Christmas.

So if you set aside the normal, seasonal stuff, how is the job market doing?

KUT News

Governor Perry announced his intention Tuesday to launch a Skilled Workforce Initiative in Texas to address demand for certified, highly-skilled workers in the manufacturing sector.

The initiative would reduce the time it takes for students to earn vocational certification in certain high-demand fields, such as manufacturing and industrial business. Under the initiative, certification programs will award credit to students who enter the program already possessing some experience and skills necessary for certification.  Backers hope the program will allow students to get certified and begin filling jobs more quickly, while also saving them time and money by allowing them to bypass lessons on subjects they’ve already mastered.

Tyler Pratt for KUT News

Update: Company spokesperson Tammy Taylor tells KUT News that “Hostess Brands had 230 employees in Texas. All facilities are shut down, with the exception of retail outlets, which will remain open for about a week to sell remaining product in going out of business sales.”

Taylor says that “severance will not be paid at this time” to the laid-off employees; “funds for these amounts are not in the ‘Wind Down’ budget that Hostess lenders approved.”

Original post (1:25 p.m.): It’s the end of Hostess Brands, the Texas-headquartered maker of Twinkies, Wonder Bread and Ding Dongs.  This morning Hostess said it filed a motion in bankruptcy court to request permission to liquidate its assets.

(Revised @ 12 p.m. ET)

The final monthly jobs report before Tuesday's general election contained something for both President Obama and Republican Mitt Romney to work into their closing arguments to voters.

For Obama, it was the news that the economy in October created significantly more jobs — 171,000 — than many economists had forecast. And the Labor Department revised upward the job numbers for September and August, suggesting even more underlying strength in the economy than earlier appeared to be the case.

The nation's unemployment rate edged up to 7.9 percent in October from 7.8 percent in September, the Bureau of Labor Statistics says.

But private and public employers added 171,000 jobs to their payrolls — nearly 50,000 more than economists had expected.

So the news is somewhat mixed: While the jobless rate remained stuck near 8 percent, job growth was better than forecast.

Teresa Vieira for KUT News

Midsize companies — firms with annual revenues of $10 million to $1 billion dollars — are now adding jobs at almost double the national average.

Middle market companies account for just 0.5% of all Texas businesses. But they employ 30% of the state’s workforce. Anil Makhija teaches finance at Ohio State University. He says midsized businesses are more reliable job creators than small ones.

“If you think about small firms, they do deserve our attention, because they are frequently the centers of innovation. But they have a very high failure rate.”

Almost every day we hear about out-of-town tech companies opening branch offices in Austin.  

What does that mean? Could the next Facebook, Google, or Apple start and grow in Austin? Will Austin even be the next Silicon Valley? Or are we a "tech colony," a place where global companies can find a ready supply of highly-trained tech workers who will work for less than workers in California or New York?

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The national unemployment rate decreased to 7.8 percent in September. According to the U.S. Bureau of Labor Statistics, the U.S. added 114,00 jobs last month. This means the number of unemployed in the U.S. is now 12.1 million. It's the first time this year that unemployment has fallen below 8 percent.

So what does this mean for Austin? As KUT News reported last month, Austin added 5,900 jobs in August, and local unemployment dropped to 5.9 percent, well below the national average.

But what about the already employed in Austin? According to staffing agency Robert Half International, technology professionals are expected to salary increases of about 5.3 percent. Administrative staff may see salaries rise by 3.5 percent. And accounting and finance salaries could jump 3.3 percent.

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By all accounts, the housing market is booming in Austin.

Home prices, number of sales, and rental occupancy rates and rents are up. And, according to numbers released yesterday, so is new construction. MetroStudy, a firm that tracks realty numbers, says construction in the third quarter is up 37% from last year.

General Motors

An announcement on the General Motors website this morning says the auto maker is coming to Austin – creating an "Information Technology Innovation Center" that may ultimately employ up to 500 people. 

The company writes on its website:

Austin was chosen for an Innovation Center because the city already has people with the skills GM is seeking -  46,000, according to the May 2011 Bureau of Labor Statistics Occupational Employment Report.

“We anticipate hiring as many as 500 new GM employees in Austin,”[GM Chief Information Officer Randy Mott] said. “We look to the Innovation Centers to design and deliver IT that drives down the cost of ongoing operations while continuously increasing the level and speed at which innovative products and services are available to GM customers."

flickr.com/jeffk42

The largest corporate employer in Central Texas, Dell, has sent out pink slips to an undisclosed number of workers. 

Despite acquisitions designed to broaden the company’s enterprise services, a slowing global economy, tough competitors, and a shift from desktop to mobile computing have hammered the Round Rock-based company’s sales, says industry analyst Shannon Cross.

“What hurt them most recently is just a dramatic slowdown in PC sales. Right now there’s a lot of uncertainty in the marketplace. China slowed dramatically for both HP and Dell in the most recent quarter. You’ve seen a lot of pricing pressure coming from some of the Asian competitors like Lenovo, Asus, and Acer.”

KUT News

One of the biggest employers in Central Texas is cutting jobs.

Dell let affected employees know about the reductions yesterday. The company says the cuts are in an effort to remain competitive and become more efficient.

“We recognize any reduction is significant for impacted team members and their teammates, and we are working to minimize consequences,” Dell Marketing Director David Frink says.

Dell isn’t revealing how many or which positions are being eliminated. Frink says some employees may be able to work elsewhere in the company.

Reshma Kirpalani for KUT News

Good morning. We're looking at another hot one today, with a high of 102 degrees. Here's some of the region's top overnight stories. 

Rebuilding Grants for Bastrop Fire Victims

It’s been just over one year since wildfires tore across Central Texas. Many fire victims are still rebuilding their lives.

Now, the Texas General Land Office is taking applications for federal aid from people whose homes were lost or damaged in the Bastrop fires.

The money is coming from more than $30 million dollars in Community Development Block Grants from the U.S. Department of Housing and Urban Development.

Austin’s unemployment rate stayed steady last month while the state rate went up slightly.

Austin’s unemployment rate was at 6.4 percent in both June and July.

"All in all it's not a bad picture but we are at a bit of a loss to explain some of the job losses that occurred during July, especially at the same time where we saw an increase in the numbers of the civilian labor force – which, again, is attributable to population growth," says Capital Area Workforce Solutions Executive Director Alan Miller. "But some of the numbers just don't quite make sense. And they're going to require us to dig a little deeper and find out what was going on in July." 

Austin’s unemployment rate went up last month.

It hit a three-year low in April of 5.5 percent, but grew last month to 5.8 percent.

According to the Workforce Solutions Capital Area Workforce Board, that increase is the largest the Austin area has seen since June 2011 (6.7 percent in May 2011 to 7.6 percent in June 2011). 

“Going up three tenths of a percent – it’s never positive to go up, we’d love to see the continued decreases that we’ve seen over the last few years – but we still created 2,000 jobs in the month of May. So while it may not be the number that we’re hoping for, it’s definitely positive and we continue to encourage employers to look at new job opportunities locally,” said Tiffany Daniels, Communication Coordinator for Workforce Solutions Capital Area Workforce Board.

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