Part I. Wood County Report

Analysis of Economic Forces, Trends, and Conditions

www.mywoodcounty.com

Analysis of Economic Forces, Trends, and Conditions Prepared for:

WOOD COUNTY ECONOMIC DEVELOPMENT COMISSION Prepared by:

Hibbs Institute for Business and Economic Research Soules College of Business; Suite 215, UT Tyler, Tyler, TX 75799 903.566.7365 | hibbsinstitute@uttyler.edu

Manuel Reyes-Loya, D.E.D., Acting Director Cecilia Cuellar, Ph.D., Junior Research Analyst Marilyn Young, Ph.D., Hibbs Institute Faculty Research Fellow Joshua Menhennett, B.A., Research Assistant

June 2023 The Hibbs Institute for Business and Economic Research is a unit of the Soules College of Business at the University of Texas at Tyler. The Institute plays a vital role in supporting the mission of the university in becoming an economic driver of East Texas by providing economic research and analysis. The Hibbs Institute is comprised of an experienced team including staff and faculty fellows. A team of highly skilled, multidisciplinary professionals that work collaboratively to provide suitable data, applicable research, and relevant analysis that businesses and government agencies need to make well-informed decisions.

OUTLOOK

2023 About Wood County Wood County is one of 254 counties in the state of Texas. This County is situated in the northeastern region of Texas, between Interstate Highways 20 and 30. The county seat, Quitman, is located approximately 80 miles east of Dallas and 30 miles north of Tyler¹. The City of Mineola in Wood County is positioned in the northern region of Tyler, where U.S. Highway 69 and Historic U.S. Highway 80 intersect. Mineola is often referred to as "the forks of the river" for its close proximity to various waterways, including the Sabine River, Lake Fork Creek, and the Big Sandy and Little Sandy creeks².

Contents

Executive Summary ................................................................................................................. i Introduction .............................................................................................................................. 01 Demographic and Socioeconomic Profile ..................................................................... 02 Population .......................................................................................................................... 03 Educational Attainment ................................................................................................ 08 Household Income ............................................................................................................ 11 Living Wage ........................................................................................................................ 14 Expenses ............................................................................................................................... 16 Poverty Status .................................................................................................................... 17 Health Insurance Coverage ........................................................................................... 19 Labor Market Trends .............................................................................................................. 21 Labor Force Participation .............................................................................................. 22 Unemployment Rate .......................................................................................................... 23 Inflow-Outflow Employment .......................................................................................... 24 Employment by Industry .................................................................................................. 26 Economic Contribution by Industry ............................................................................. 29 Employment by Occupations ......................................................................................... 30 Location Quotients ............................................................................................................. 31 Labor Market Expectations ................................................................................................... 33 Expectations by Occupations ........................................................................................ 34 Industry-Occupation Mix Examination ..................................................................... 63 End Notes ....................................................................................................................................... 64 Appendix ....................................................................................................................................... 66

www.mywoodcounty.com

Executive Summary This report is a thorough analysis of economic

and about 35% of residents, are on or above 60

forces, trends, and conditions in Wood County.

years of age. The educational attainment levels

Its primary purpose is to present valuable

have increased in the past eleven years or so,

information for policymakers and economic

reaching higher levels than other rural counties

development practitioners. The structure of

in East Texas. Although the median household

this

a

income is higher than most counties in East

demographic and socioeconomic profile, 2) a

Texas, poverty levels in certain groups are still

labor market trends examination, and 3) a

high, with living wage estimates above the

labor market expectation analysis.

average

analysis

is

in

three

stages:

1)

population

This section assembles indicators that enable reader

population

to

understand

composition.

the

It

County’s

details

of

several

occupational

categories. About 26% of the working-age

Demographic and Socioeconomic Profile

the

wage

the

population growth over the past decade,

in

the

County

is

uninsured,

compared with 23.7% in Texas and 12.3% in the United States.

Labor Market Trends

breaking down the population by age cohorts,

This section provides an examination of the

race and ethnicity, and foreign-born or native

workforce in Wood County. It starts by

individuals.

explores

exploring the labor force participation and the

educational attainment levels for the County’s

unemployment rates at different age cohorts.

population

older,

Then, the report follows to analyze the current

including overall and by major racial-ethnic

local employment from various perspectives,

groups. Finally, this section covers household

including the inflow and outflow of resident

income and expenses, as well as an outlook on

and non-resident workers of Wood County; the

living wages, poverty levels, and health

employment

insurance coverage.

economic

This 25

section

years

of

also age

and

Wood County’s population has raised by nearly 11% since 2010. It consists of a predominantly White non-Hispanic population

share

by

contribution

industry

and

of

relevant

those

the

industries; the structure of the local workforce by

occupation

category;

and

a

Location

Quotients (LQ) analysis using annual average wages and employment levels by industry.

Analysis of Economic Forces, Trends and Conditions in Wood County

i

Executive Summary The County successfully maintained a healthy labor market, during the pandemic crises, compared to other geographies in Texas and the nation. Unemployment rates in Wood County reached full-employment levels (below 4%-5%),

despite

high

inflation

rates

experienced by the entire nation during the past several months. The workforce flow between Wood County and other counties in the region is noteworthy. A substantial number of the County’s residents (73.7%) commute back and forth to a different county for work.

Simultaneously, residents from other counties commute daily to their working places in Wood County.

Retail Trade, Healthcare, and Educational Services are the three industries that generate

Labor Market Expectations This section includes two different approaches to examining employment projections by 2030.

The first is an extensive analysis of 300 different occupational categories in the County using four key factors: number of employees, median

wages,

unemployment

rates,

and

growth expectations. The second approach, an Industry-Occupation

mix

examination,

contrasts the most relevant industries in the County

with

the

type

of

workers

these

industries employ and their corresponding expected growth.

This detailed information may be instrumental in the strategic planning of Wood County’s future employment scheme.

more jobs in Wood County, with about 38% of the County’s employment. The occupational categories where most people work in Wood County are Office and Administrative Support, Sales, Management, Food Preparation and Serving, and Educational Instruction, with nearly 47% of all laborers.

According to a Location Quotient analysis, Wood County could find an employment comparative advantage in industries such as Utilities, Agriculture and Related, Construction, and Manufacturing.

Analysis of Economic Forces, Trends and Conditions in Wood County

ii

01

Analysis of Economic Forces, Trends and Conditions in Wood County

Introduction The Hibbs Institute for Business and Economic Research at the University of Texas at Tyler was comissioned

by

the

Wood

County

Economic

Development Commission to conduct an analysis of economic forces, trends, and conditions in Wood County. The report is organized in two sections.

The

first

section,

Socioeconomic

Profile,

a

Demographic includes

recent

and and

historical statistical data regarding the Wood County population by age, gender, race, and ethnicity.

Additionally,

it

includes

relevant

socioeconomic indicators, such as educational attainment, median household income, poverty rates, and health insurance coverage.

The second section, a Labor Market Trends Examination,

explores

and

describes

various

relevant economic indicators: Labor force participation Unemployment rates Inflow-outflow employment Employment by industry Economic contribution by industry Employment by occupations Location quotients The third section, a Labor Market Expectations Analysis, which includes future employment trends measured as the expected growth of relevant workforce categories associated with the local and regional growing industry sectors.

This report is intendend to serve as a tool for economic development decision-makers in Wood County.

DEMOGRAPHIC AND SOCIOECONOMIC

PROFILE

Population The population of Wood County increased

According to the U.S. Census Bureau estimates,

10.6% between 2010 and 2021. Although this

Wood County had a population of 46,045

growth

overall

residents by 2021. See Figure 1. Population in

population growth of Texas (18.7%), it is

Wood County has increased consistently since

higher than in other counties' growth with

2010, with annual growth rates ranging

similar conditions and characteristics in rural

between 0.8% and 2.2%.

rate

is

slower

than

the

Texas.

Figure 1. Population in Wood County (2010-2021)

Notes: Using Table DP05. The lastest observation was an estimation elaborated by the Hibbs Institute.

Source: American Community Survey (5-year estimates), U.S. Census Bureau.

The natural change in population for Wood County was negative in 2021 (the number of deaths exceeded births). However, the overall

Wood County's population increased 10.6% between 2010 and 2021

population increased by 2.2% in 2021 due to a considerable increase in domestic migration.

The U.S. Census Bureau estimated that the inflow migration was of 1,538 individuals, representing 3.4% growth in the County's population for 2020.

Analysis of Economic Forces, Trends and Conditions in Wood County

03

Population

Mineola and Quitman are among the most

Figure 2. Population in Quitman and Mineola (2010-2021)

populated cities in Wood County. Mineola is the largest, with more than 10% of the county's population (Figure 2-A). Quitman's population accounts for 4.8% (Figure 2-B).

Quitman is the county seat and hosts the county court.

Mineola's population has

increased by 5% since 2010, while Quitman's population grew by 24% in the same period.

Mineola is the most populated city in Wood County, with more than 10% of the county's population.

Notes: Using Table DP05.

Source: American Community Survey (5-year estimates), U.S. Census Bureau.

Analysis of Economic Forces, Trends and Conditions in Wood County

04

Population Figure 3 depicts a population pyramid with nine age cohorts for Wood County. The

About 58% of the population in Wood County are in the working-age category (16-65 years of age)

pyramid shows a slightly inverted shape, which occurs when older people predominate over the young in a region. More than onethird (35.3%) of the population in Wood County are 60 years and over.

Figure 3. Wood County Population Pyramid (2021)

Notes: Using Table DP05.

Source: American Community Survey (5-year estimates), U.S. Census Bureau.

About 58% of the population in Wood County is

About 16% of the population in Wood County

in the working-age category (16 to 65 years of

are minors (14 years old or younger), and

age). Typically, when the working age category

12% are between 15 and 24 years of age.

is larger than 50% is considered a positive

Remarkably, over 26% of the population are in

labor

retirement age (65 years and older), and 16%

indicator

as

it

implies

individuals can join the labor force.

that

more

are between the ages of 55 and 65. This suggests that the county's demographics are shifting towards an older population on average.

Analysis of Economic Forces, Trends and Conditions in Wood County

05

Population The total population in Wood County was

All other races together accounted for 8.6%.

46,045

higher

The Hispanic or Latino ethnicity (about 4,690

percentage of females (50.1%) than males

in 2021) has grown considerably over the past

(49.9%). See Table 1. The prevalent race in

twelve years in Wood County, from 7.9% in

Wood County was White, with 86.6% of the

2010 to 10.5% in 2021.³

in

2021,

with

a

slightly

population, followed by Black or African American (4.7%).

Table 1. Race and Ethnicity population shares in Wood County (2021)

Notes: Using ACS Housing and Demographic estimates (Table DP05).

Source: American Community Survey (5-year estimates), U.S. Census Bureau.

Analysis of Economic Forces, Trends and Conditions in Wood County

06

Population According to the U.S. Census Bureau estimates, outside the country (in Puerto Rico or abroad in 2021, as the most recent year available, with American parents). One-third of the about 1,888 Foreign Born individuals reside in Foreign Born population who reside in Wood Wood County, equivalent to 4.1% of the total County has obtained U.S. citizenship via population. See Table 2. Comparatively, the naturalization. The majority of the other twoNative (born in the U.S.) population was 44,157 thirds (76.1%) were born in a Latin American (95.9%), of which 31,837 individuals (72.1% of country. the Native) were born in Texas. The remainder of Native population in Wood County (11,878) were born in other states, and 442 were born Table 2. Native and Foreign Born Population Shares in Wood County (2021)

Notes: Using Table DP05.

Source: American Community Survey (5-year estimates), U.S. Census Bureau.

Analysis of Economic Forces, Trends and Conditions in Wood County

07

Educational Attainment Wood County shows commendable levels of Figure

4

depicts

educational

attainment

educational attainment. A substantial portion broken down by race and ethnicity. Although of the Wood County population has achieved race and ethnicity are different categories by considerable levels of education. Specifically, definition,

four

large

categories

are

put

more than 86% of individuals aged 25 and together and analyzed in this report for above have at least a high school diploma. convenience: Moreover,

around

20%

have

White,

non-Hispanic

(White

successfully hereafter), Black or African American Alone

obtained an Associate degree or a Bachelor's (Black hereafter), Hispanic or Latino (Hispanic degree, which is higer than most counties in hereafter), and a group including all race East Texas[#] Demonstrating

categories identified by the U.S. Census Bureau a

commitment

to

higher

(All-Races hereafter).⁸

education, roughly 8% of the population in In 2021, the educational attainment levels for Wood County has a graduate or professional All-Races revealed that 85.6% of individuals 25 degree.

These

statistics

suggest

a

solid years and over in Wood County have obtained

educational foundation within the community a high school diploma or higher. Notably, and

highlight

the

importance

placed

on 89.3% of individuals in the White category

academic accomplishments in Wood County. have graduated from high school or higher. In See Table 3.

contrast, for the Black and Hispanic categories the figures are 74.7% and 52.9%, respectively.

Table 3. Educational Attainment in Wood County (2021)

Notes: Using ACS Educational Attainment (Table S1501).

Source: American Community Survey (5-year estimates), U.S. Census Bureau.

Analysis of Economic Forces, Trends and Conditions in Wood County

08

Educational Attainment Educational attainment levels improved for the

Analyzing

White between 2010 and 2021. The percentage

attainment over 2010 to 2021, the White

of individuals 25 years and older with a high

population experienced a decrease of 3.6

school diploma or higher increased from 82.7%

percentage points in high school diplomas but

to 89.3%. Some college or Associate degree

witnessed an increase of 5.5 percentage points

categories went up from 29.7% to 35.2%, and

in some college or associate degrees and a

the Bachelor's degree or higher category

growth of 4.7 percentage points in Bachelor's

increased from 16.8% to 21.5%.

degree

Interestingly, educational attainment decreased by roughly ten percentage points (from 85.3% to 74.7%) for the Black category between 2010 and 2021. Since the Black population in Wood County increased by 70% in the same period, it could be the case that those individuals moving to Wood County were relatively less educated, which dropped its educational levels.

or

the

changes

higher.

in

Conversely,

educational

the

Black

population saw a decline of 9.8 percentage points in high school diplomas, an increase of 12.5 percentage points in some college or associate degrees, and a decrease of 13.3 percentage points in Bachelor's degrees or higher.

Finally, for the Hispanic population, there was a modest increase of 1.1 percentage points in

Although this group increased by about 70%, the percentage of individuals completing a high school degree or higher decreased between 2021 and 2010.

high school diplomas; no significant change in some college or associate degrees, and an increase of 7.6 percentage points in Bachelor's degrees or higher.

In contrast, the Hispanic group, which also increased in absolute numbers (about 55%), has improved their educational attainment levels by nearly 9 percentage points (from 44.2% to 52.9%) during the same period.

Specifically,

the

percentage

of

Hispanics

About 86% of individuals aged 25 and over have at least a high school diploma.

earning a Bachelor's degree or higher more than doubled in Wood County between 2010 and 2021 (from 6.1% to 13.7%).

Analysis of Economic Forces, Trends and Conditions in Wood County

09

Educational Attainment

Notes: Using Table S1501.

Source: American Community Survey (5-year estimates), U.S. Census Bureau.

Analysis of Economic Forces, Trends and Conditions in Wood County

10

All Races

Hispanic

Black

White

All Races

Hispanic

Black

White

All Races

Hispanic

Black

White

Figure 4. Educational Attainment by Major Racial and Ethnic Groups (2010, 2017, and 2021)

Household Income Table 4 depicts the median household income

According to estimates made by the U.S. Census

by different brackets and the distribution of

Bureau, nearly 24% of all households in Wood

annualized

Wood

County make $100,000 or more per year. In

County, the City of Quitman, and the City of

contrast, about 21% make less than $25,000

Mineola. In 2021, the median household

per year. About 21.1% of households in the City

income was $58,418 in Wood County, which is

of Quitman may be considered low-moderate

higher than most counties in East Texas.⁵ The

income with $25,000 or less, while the City of

City of Quitman was $53,601; and the City of

Mineola has a considerably larger number with

Mineola was $42,153. Remarkably, the median

nearly 29%.

household

income

for

household income for Mineola lies about 38% below the county’s income.

About 24% of all households in Wood County make $100,000 or more per year.

Table 4. Distribution of Annualized Household Income in Wood County, Quitman and Miniola (2021)

Notes: Using Table S1903.

Source: American Community Survey (5-year estimates), U.S. Census Bureau.

Analysis of Economic Forces, Trends and Conditions in Wood County

11

Household Income Figure 5 breaks down median household Despite the overall increase in income, recent income by major racial and ethnic groups for data indicates that income differences persist 2010, 2017, and 2021. The median household among racial and ethnic groups. For instance, income for All Races in Wood County has the median household income gap between the increased by 41.5% between 2010 and 2021, White and the Black groups population is from 41,277 to 58,418. However, this increase 26.4%, while the gap between the White and was not distributed evenly across racial the Hispanic groups is 9.3%. In other words, groups. While households in the Hispanic group for every $100 made by the White population, experienced a

significant increase of 67.5%, the Black population makes $73.6, and the

the White group had an increase in the median Hispanic population makes $90.7. See Figure 5. income by 38.7%.

In contrast, the median household income for the Black group increased by 10.3% during the same time period. The group with the lowest median household income in 2010 was the Hispanic group, up until 2017. Since 2017, the Black

group

became

the

lowest

median

household income.

Over the past decade, the median household

The White-Black household income gap is 26.4%, while the White-Hispanic is 9.3%

income across all racial and ethnic groups experienced a notable increase of 41.5%.

However, distinct variations emerge when examining the median household income by race and ethnicity. Specifically, the income of the White population increased by 38.7%; the income of the Black population increased by 10.2%; and the income of the Hispanic population increased by 67.4%.

Analysis of Economic Forces, Trends and Conditions in Wood County

12

Household Income

Notes: Using ACS Median Income in the past 12 months (Table S1903).

Source: American Community Survey (5-year estimates), U.S. Census Bureau.

Analysis of Economic Forces, Trends and Conditions in Wood County

13

All Races

Hispanic

Black

White

All Races

Hispanic

White Black

All Races

Hispanic

Black

White

Figure 5. Median Household Income by Major Racial and Ethnic Groups (2010, 2017, and 2021)

Living Wage The Living Wage is a low-income indicator According to the MIT calculator (for the type developed by the Massachusetts Institute of

and size of families), about 73% of the

Technology (MIT). MIT Living Wage calculator occupational categories in Wood County are estimates the minimum local wage rate that a paid relatively low. People in these low-paying full-time worker needs to afford a living for categories

may

need

to

have

multiple

their family at their place of residence. The members of their household working or indicator is estimated for 12 different family enrolling in federal assistance programs to types in 3,142 counties in the 50 states. ⁶

afford a living.

MIT estimates the Living Wage indicator in The occupational category that shows the Wood County at $35.78 per hour for a family highest

average

hourly

wage

is

Legal

with two parents and two children with only Occupations ($47.7), followed by Management one parent working. And at $30.84 per hour Occupations

($40.9),

Architecture

and

for a family with one parent and one child. Engineering Occupations ($40.0), Computer Figure 6 depicts these two Living Wage and Mathematical Occupations ($39.0), and indicator as horizontal lines, and each major Healthcare

Practitioners

and

occupational category (2-digit) with their Occupations ($38.1). corresponding average hourly wage in bars.

The gap between the bars and the lines represents the distance between a family Living Wage and the expected wage of an occupational category.

Analysis of Economic Forces, Trends and Conditions in Wood County

Child Care expenses can be as much as for Food or Medical expenses for some families.

14

Technical

Living Wage Figure 6. Major Occupations and Living Wage Indicator for Wood County (2022)

Notes: LW1 wage is the minimum hourly wage needed for a family composed of 1 parent and 1 child. LW2 is the minimum hourly wage needed for a family composed of 2 parents (1 working) and two children.

Source: Glasmeier, Amy K. Living Wage Calculator. 2023. Massachusetts Institute of Technology. livingwage.mit.edu. Chmura Economics & Analytics data.

Analysis of Economic Forces, Trends and Conditions in Wood County

15

Expenses In addition to the Living Wage calculator, the

According to the median household income

MIT developed a thorough estimation of the

distribution in Wood County (Table 4), the

average expenses incurred by different types

minimum required income estimated by MIT

and sizes of families in multiple locations in the

may leave many families in a compromised

nation. Table 5 provides an overview of these

position

estimated expenses by category for 16 types

earnings. Then, to afford a living, many of

and sizes of families in Wood County.

these families may be beneficiaries of federal

According to the Living Wage initiative, the most relevant expense for the majority of family types and sizes in Wood County is the Transportation

category,

which

represents

around 20% of all expenses before taxes.

Interestingly,

Child

Care

category

(when

required) account for a large portion of the family income; even higher than Food and Medical categories.

with

government

their

expenses

programs

such

exceeding

as

the

Supplemental Nutrition Assistance Program (SNAP), Medicaid, or Temporary Assistance for Needy Families (TANF), which complement their current occupational income. Debt is also a frequent alternative to fund family expenses.

It is estimated that families with children have between 14% and 51% more total debt than the national average.⁷

Table 5. Estimated Annual Expenses and Required Income for Living in Wood County (2022)

Note: all the estimations are for different size of family.

Source: Glasmeier, Amy K. Living Wage Calculator. 2023. Massachusetts Institute of Technology. livingwage.mit.edu.

Analysis of Economic Forces, Trends and Conditions in Wood County

16

Poverty Status According to the U.S. Census Bureau, the

From 2010 to 2021, poverty rates decreased

poverty rate for All-Races was approximately

by 2.2 percentage points in the All-Races

13.6% of the population in Wood County in

group. Within each racial and ethnic group, the

2021. Nevertheless, the Black and Hispanic

poverty share among the White population

groups show higher poverty rates than the All-

decreased by 2.1 percentage points. Similarly,

Races

19.5%,

the poverty rate among the Black population

respectively. In contrast, the White group

decreased by 2.8 percentage points. Notably,

performed better than the other groups

the

(12%).

significant decrease of 8.2 percentage points in

group,

with

18.5%

and

Poverty status levels have improved in Wood

Hispanic

population

experienced

their poverty rate.

County for All-Races, and for the major racial groups between 2010 and 2021. Notably, the Hispanic group had a reduction in the percentage of individuals in poverty status by 8.2 percentage points from 27.7% to 19.5%.

This poverty rate reduction was modest for other groups with 2.1 percent points (from 14.1% to 12.0%) on the White group, and 2.8 percentage points (from 21.3% to 18.5%) on

Poverty rates for the Hispanic group decreased by 8.2 percentage points between 2010 and 2021.

the Black group.

In 2021, the overall poverty rate across AllRaces

was

population.

approximately More

13.6%

specifically,

of

the

among

individuals experiencing poverty, 12% were White, 18.5% were Black, and 19.5% were Hispanic. See Figure 7.

Analysis of Economic Forces, Trends and Conditions in Wood County

17

a

Poverty Status

Notes: Using Table S1701.

Source: American Community Survey (5-year estimates), U.S. Census Bureau.

Analysis of Economic Forces, Trends and Conditions in Wood County

18

All Races

Hispanic

Black

White

All Races

Hispanic

Black

White

All Races

Hispanic

Black

White

Figure 7. Poverty status by Major Racial and Ethnic Groups (2010, 2017, and 2021)

Health Insurance Coverage In 2021, the percentage of health insurance

However, there is a significant portion of the

coverage among the civilian noninstitutional

working-age population (16 to 65 years),

population in Wood County was 84.1%.

approximately

Notably, the younger and older age groups had

insurance coverage, compared to Texas, with

higher coverage rates, with 89.2% (< 18

23.7% and 12.3% in the U.S.

25.7%,

without

health

years), and 99.6% (65 > years). See Table 6.

The data allows to identify the gaps in healthcare coverage, particularly among the working-age population, to ensure equitable access

Approximately 26% of Wood County’s working-age population is uninsured

to

healthcare

services

individuals.

Table 6. Health Insurance Coverage by Age in Wood County (2021)

Notes: Using Table S2701.

Source: American Community Survey (5-year estimates), U.S. Census Bureau.

Analysis of Economic Forces, Trends and Conditions in Wood County

19

for

all

Health Insurance Coverage In 2021, 84.1% of individuals of All Races had

Over the past decade, there has been an

health insurance coverage in Wood County.

increase of 5.5 percentage points in health

Notably, the percentage of individuals in the

insurance coverage across All-Racial groups.

White group was the highest at 87.3%, whereas

Specifically, the White group had an increase

the Black

and

Hispanic

reported

of 6.6 percentage points, while the Hispanic

coverage

rates

at

63.5%,

group experienced a substantial growth of 7.7

groups

75.8%

and

respectively. See Figure 8.

percentage points. In contrast, the Black population experienced a slight decrease of 1.2 percentage points in health insurance coverage.

Notes: Using Table S2701.

Source: American Community Survey (5-year estimates), U.S. Census Bureau.

Analysis of Economic Forces, Trends and Conditions in Wood County

20

All Races

Hispanic

Black

White

All Races

Hispanic

Black

White

All Races

Hispanic

Black

White

Figure 8. Health Insurance Coverage by Major Racial and Ethnic Groups in Wood County (2010, 2017, and 2021)

LABOR MARKET TRENDS

Labor Force Participation Table 7 shows the distribution of labor force

such as Texas (overall), ranging between 73%

and unemployment rates by age cohorts. In

and 82%, and Smith County ranging between

2021, the Labor Force Participation Rate

71% and 88%.

(LFPR) for individuals 16 years of age and older in Wood County was 48.3%, in Mineola 55.3%, and in Quitman 46.4%. These numbers are relatively low compared to Texas (overall) and Smith County, with 64.6% and 61.3%, respectively, during the same period. This significant

difference

aligns

with

the

population pyramid (Figure 3), which shows a considerable number of individuals above 60 years of age. Most likely, a substantial number of these adults 60 years and older are not part of the labor force.

As expected, individuals between 20 and 59

LFPR decreases as individuals get closer to retirement age; individuals 60 to 64 years showed a 45.1% rate, 65 to 74 years showed a 16.9% rate, and 75 and over showed a 5.9% rate.

Unemployment rates in Wood County were low for individuals between 25 and 59 years of age (ranging between 2.3% and 4.6%).

Older individuals (60 years and over) ranged between 4.7% and 5.3%. In contrast, younger individuals (16 to 25 years) experienced unemployment rates above 10%.

years of age had the highest LFPR, with rates ranging from 68% to 79%. Yet, these rates are slightly lower compared to other geographies

The unemployment rates for individuals aged between 25 to 59 years ranged from 2.3% to 4.6%.

Table 7. Labor Force Participation and Unemployment Rate (2021)

By Age Cohorts

Notes: Using Table S2301 Source: American Community Survey (5-year estimates), U.S. Census Bureau.

Analysis of Economic Forces, Trends and Conditions in Wood County

22

Unemployment Rate Unemployment

rates

were

relatively

low It took Wood County almost two years to reach

during 2018 and 2019 in Wood County. These its pre-pandemic unemployment levels. Wood pre-pandemic numbers ranged between 3.4% County returned to a rate below 4% (full and 4.0%, which is considered full employment. employment) by April 2022 and remained low However, in April 2020, at the beginning of the thereafter. The recovery time frame was COVID-19 lockdown, the unemployment rate similar to other counties in East Texas, such as reached its highest level in Wood County at Smith County. See Figure 9.

12.6%. Although high, these levels were lower than for Texas (overall) and the national average during the same month, which reached 12.8% and 14.8%, respectively.

The unemployment rate in Wood County remains low at 4.1% in March 2023.

Figure 9. Unemployment Rate in Wood County (2021)

Source: U.S. Bureau of Labor Statistics.

Analysis of Economic Forces, Trends and Conditions in Wood County

23

Infow-Outflow Employment According to estimates by the U.S. Census Bureau concerning the inflow and outflow of workers among counties in the region, there is a relevant interaction between Wood County and its neighboring areas. The most recent statistics (2020) show that 26.3%

(4,095)

work within Wood County. The rest of the

About 74% of Wood County residents work out of the county and commute for work.

workforce, 73.7% (11,466), work elsewhere and commute daily for work. On the other hand, 5,183 Wood County workers reside in other counties and commute to Wood County for work every day. See Figure 10.

Figure 10. Inflow and Outflow of Jobs in Wood County (2020)

Notes: Using On The Map tool (Inflow/Outflow Analysis) Source: U.S. Census Bureau.

Analysis of Economic Forces, Trends and Conditions in Wood County

24

Infow-Outflow Employment Figure 11 shows the county of residence for workers employed in Wood County in 2020.

Figure 11. Workers' Residential Locations in Wood County (2020) From largest to smallest contributor

Only 44.1% of Wood County workers resided in Wood County; the other 55.9% lived in different counties and commuted every day to their working place in Wood County. The largest contributor to local employment in Wood County was Smith County, with about 10.5% workers (970), followed by Hopkins County with 4.1% (384), Van Zandt County with 3.8% (351), Upshur County with 3.4% (313),

Dallas

County

with

2.8%

(263),

Franklin County with 2.7% (247), Rains County with 1.9% (176), Gregg County with

Notes: Using On The Map tool (Inflow/Outflow Analysis) Source: U.S. Census Bureau.

1.7% (156), Tarrant County with 1.7% (152), and other locations with the remainder.

The estimated distance traveled for work in Wood County is shown in Table 8. In 2020, about 62% of workers in Wood County (5,731)

About 58% of Wood County's workers reside outside of the county

drove less than 24 miles to their working place, while about 15% drove between 25 and 50 miles, and about 23% more than 50 miles to get to their jobs in Wood County.

Table 8. Distance to work in Wood County (2020)

Notes: Using On The Map tool (Inflow/Outflow Analysis) Source: U.S. Census Bureau.

Analysis of Economic Forces, Trends and Conditions in Wood County

25

Employment by Industry According to the U.S. Census Bureau, 13,024 people were employed in Wood County ( annual average employment) in 2021. About 66% of these employed individuals within Wood County worked as a part of six industry sectors: Retail Trade (13.7%), Health Care and Social Assistance (13.0%), Educational Services

Retail Trade, Health Care and Social Assistance, and Educational Services industry sectors account for more than one-third of all employment in Wood County.

(11.4%), Construction (9.9%), Manufacturing (9.1%), and Accommodation and Food Services (8.7%). See Figure 12.

Figure 12. Selected Industries with the Highest Employment Level in Wood County (Q4-2022)

Source: Estimated by the Hibbs Institute using Chmura Economics & Analytics data.

Analysis of Economic Forces, Trends and Conditions in Wood County

26

Employment by Industry The six industries with the largest number of The Health Care and Social Assistance industry employed individuals in Wood County are also grew consistently during the same period. depicted in Figure 13-A and 13-B. In 2022, The industry increased by 251 workers, or Retail Trade was the leading industry with 17.4%, since 2010. The Educational Service 1,786

employees

employment),

(annual

representing

13.7%

average industry, third on the list, also experienced of

all significant growth between 2010 and 2022,

workers in the county. From 2010 to 2022, with 221 more employees, or a 17.4% increase.

Retail Trade grew 25.8%, or 366 employees.

See Figure 13-A.

Employment level

Figure 13-A. Employment Levels of Selected Industries in Wood County (2010-2022)

Source: Estimated by the Hibbs Institute using Chmura Economics & Analytics data.

Analysis of Economic Forces, Trends and Conditions in Wood County

27

Employment by Industry The fourth largest industry in Wood County,

The

concerning employment, was the Construction

industry with 1,179 workers (annual average

industry, with 9.9% of all workers in the

employment) in 2022. The Manufacturing

county.

1,291

industry experienced a 23.7% increase in its

individuals (annual average employment) in

employment levels (226 workers) between

2022. The Construction industry experienced

2010 and 2021. The Accommodation and Food

the

Services

This

largest

industry

employment

employed

increase

of

all

fifth

top

industry

industry,

with

is

Manufacturing

1,128

employees,

industries in Wood County from 2010 to 2022.

represented 8.7% of all jobs in Wood County in

This industry grew 46.1%, representing about

2021. This industry increased its workforce by

407 more workers in 2022 compared to 2010.

22.0%, or 204 employees, between 2010 and 2021. See Figure 13-B.

Employment level

Figure 13-B. Employment Levels of Selected Industries in Wood County (2011-2022)

Source: Estimated by the Hibbs Institute using Chmura Economics & Analytics data.

Analysis of Economic Forces, Trends and Conditions in Wood County

28

Economic Contribution

by Industry The Gross Domestic Product (GDP) is the total The Manufacturing industry is the largest value of everything produced within a region, contributor

to

the

county's

economy,

such as a country, a state, or a county. GDP is accounting for 17.5% of the local GDP. The often used as an indicator to measure the following industries are Retail Trade (11.5%), economic activity of a region. In 2021, the GDP Construction (10.2%), Educational Services of Wood County totaled $1,754,667,000. The (7.7%), Healthcare and Social Assistance economic

activity

concentrated

in

in

Wood

few

industry

a

County

is (7.0%), Real Estate and Rental and Leasing

sectors. (5.2%), and Mining, Quarrying, and Oil and

Remarkably, about 39% of Wood County’s Gas Extraction (4.9%). The rest of the industry economic activity in 2021 was generated by sectors are combined in Others in Figure 16. three industry sectors.

Figure 16. GDP Share by Industry in Wood County (2021)

Source: Estimated by the Hibbs Institute using the Bureau of Economic Analysis and Chmura Economics & Analytics data.

Analysis of Economic Forces, Trends and Conditions in Wood County

29

Employment by Occupation The U.S. Bureau of Labor Statistics classifies all Office and Administrative Support (10.4%), possible occupations in a system called Sales and Related (10.3%), Management Standard Occupational Classification (SOC). (9.7%), Food Preparation and Serving Related This system allocates workers into 23 major (8.9%), and Educational Instruction and groups to identify the type of work performed. Library (7.5%).

These 23 major groups can be expanded into 867 occupational categories based on their detailed working activity. See Appendix.

The occupational groups that account for the lowest concentration of employment are: Life, Physical and Social Science (0.6%), Legal

Figure 15 shows the employment occupation (0.6%), Architecture and Engineering (0.9%), distribution by major group in Wood County in Farming, Fishing, and Forestry (1.0%), and the most recent data available. Remarkably, the Arts, Design, Entertainment, Sports, and Media top five occupational groups combined account (1.2%). for 47% of all workers in Wood County:

Figure 15. Employment by Occupations in Wood County (Q4-2022)

Source: Estimated by the Hibbs Institute using U.S. Census Bureau and Chmura Economics & Analytics data.

30

Location Quotients Location Quotients (LQs) are an economic

A relatively high LQ (1.2 or higher) can be

development tool frequently used by regional

considered a strength for the county as it may

economists, analysts, or local governments. In

represent

essence,

specialization. Strategists frequently use this

LQs

are

ratios

that

provide

a

convenient way to examine the specialization

an

area

of

employment

as a comparative advantage for development.

of economic activity in a particular region, frequently employment levels.⁸ An LQ of 1

Figure 14 depicts the calculated LQs by

indicates that the area under consideration has

industry in Wood County for 2021 on the

the same percentage of employment in the

vertical axis. Conveniently, the bubble chart

examined industry as the state average. An LQ

simultaneously shows the average wages for

higher than 1 indicates that employment in the

each one of these industries on the horizontal

examined industry is proportionally higher

axis,

than the state average. For instance, an LQ of

represented as the size of the colored circle

2.9 means that the industry examined is nearly

(size of the industry). The circles above the 1.0

three times the proportion of such industry in

line across the chart represent industries with

the state.

LQs of 1 or more.

and

the

number

Figure 14. Location Quotients Analysis of Wood County (2021)

Notes: the bubble size represents the number of employees in each industry.

Source: Estimated by the Hibbs Institute using U.S. Census Bureau and Chmura Economics & Analytics data.

Analysis of Economic Forces, Trends and Conditions in Wood County

31

of

employees

Location Quotients The

calculated

LQs

for

Construction, Remarkably, the Educational Services industry

Manufacturing, and Retail Trade industries has a high LQ and relatively high employment resulted with higher levels of specialization levels (1.30 and 1,486 employees), with higher compared to the state (1.39, 1.37 and 1.37, annual

wages

($40,159).

In

a

different

respectively). See Table 9. While employment scenario, the Utilities industry is well paid levels are relatively high and that may be ($50,750 annual wages) and has a high LQ of considered a positive economic indicator, 2.11, but not as many people employed with wages are to be considered to have a better 168 individuals See Table 9. sense of the level of advantage tied to the indicator. For instance, annual wages in the Retail Trade industry are substantially lower ($24,669) than in Construction ($37,045) and Manufacturing ($34,401) industries.

Table 9. Location Quotients Analysis of Wood County (2021)

Notes: the bubble size represents the number of employees in each industry.

Source: Estimated by the Hibbs Institute using U.S. Census Bureau and Chmura Economics & Analytics data.

Analysis of Economic Forces, Trends and Conditions in Wood County

32