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Texas unemployment rate rises to 8.3% in September, seven months into economic recession
After a summer of declining unemployment rates following Gov. Greg Abbott’s widespread business reopenings during the pandemic, the state’s unemployment rate jumped to 8.3% in September. BY MITCHELL FERMAN OCT. 16, 2020UPDATED: 7 PM
Pueblo Viejo in Austin, like restaurants across the state, closed its dining operations following an executive order from Gov. Greg Abbott earlier this year. The state's unemployment rate dropped after businesses began reopening, but it rose again in September. Credit: Eddie Gaspar/The Texas Tribune
Sign up for The Brief, our daily newsletter that keeps readers up to speed on the most essential Texas news. The Texas unemployment rate rose to 8.3% in September, the Texas Workforce Commission said Friday, surpassing the national unemployment rate of 7.9% and returning the state to the unemployment levels of the Great Recession. While the national unemployment rate declined, the state’s sharp
increase from the seasonally adjusted August unemployment rate of 6.8% shows how some industries that had hoped to weather the coronavirus pandemic’s economic recession have not been able to do so, economists said, and instead have announced large numbers of layoffs. The number Friday also shows that a lot of Texans are jobless seven months into the pandemic despite widespread business reopenings across the state.
Friday’s announcement provides what could be the clearest snapshot of the Texas economy ahead of the Nov. 3 election. Peter Rodriguez, dean of the Jesse H. Jones Graduate School of Business at Rice University, called the increase “evidence that we didn’t take the short route out of the recession.” “We’re going to be here for a little while,” he said. The airline industry has been particularly hard hit in recent weeks. That sector laid off tens of thousands of people as the travel industry continues suffering during the prolonged pandemic, according to The Washington Post. American Airlines is based in Fort Worth, Southwest Airlines is based in Dallas and United Airlines counts Houston as one of its hubs. “What we saw with companies like the airlines and others is happening throughout the economy,” Rodriguez told The Texas Tribune. “Airlines held out in hope for more rapid recovery. But as that hope faded, a lot of them cut back more and made tough choices.” The U.S. Department of Labor is expected to release the stateby-state unemployment rates Tuesday. A spokesperson for the workforce commission said next week’s release from the labor department will also show Texas’ unemployment rate in September was 8.3%.
Three Republicans file to run for speaker of the Texas HouseTrent Ashby, Chris Paddie and John Cyrier are the first three from their party to file. Two Democrats are also seeking the gavel. BY CASSANDRA POLLOCK OCT. 29, 2020UPDATED: 2:30 PM
Empty chamber of the Texas House of Representatives at the state Capitol. Credit: Marjorie Kamys Cotera for The Texas Tribune
State Reps. Trent Ashby of Lufkin, Chris Paddie of Marshall and John Cyrier of Lockhart join two Democrats in seeking the gavel: Senfronia Thompson of Houston and Trey Martinez Fischer of San Antonio. More candidates are expected to file, perhaps after the Nov. 3 election once it’s clear which party will be in control of the chamber. In statements, both Ashby and Cyrier pointed to the legislative session beginning in January — and the challenges state lawmakers will all but certainly have to tackle — to help make their pitch for why they’re the best candidate for the job. “Given the collective challenges we will face in upcoming legislative session, as we continue our battle with COVID-19 and work to balance a budget despite revenue challenges, it is critically important that the next Speaker fosters the trust and cooperation necessary to overcome these challenges and deliver the results that all Texans expect and
deserve,” Ashby, who has served in the House since 2013, said. Cyrier, who has served in the House since 2015, said the session “will be a demonstration of Texans’ resilience.” “My top priority as speaker will be to work with all members of the House and build consensus during what is sure to be a challenging session,” Cyrier said. Paddie, who has served in the lower chamber since 2013, did not immediately release a statement about his bid. Candidates are vying to replace Republican House Speaker Dennis Bonnen, who will retire after serving one term thanks to a political scandal last year. Thompson, the longest-serving woman and Black person in the history of the Texas Legislature, filed Friday to run for the gavel. Over the past two days, two coalitions — the lower chamber’s Harris County Democratic delegation and the Texas Legislative Black Caucus — have announced their support for Thompson’s
speaker bid, putting the number of members publicly backing her candidacy at 23. The winning candidate will need a majority of votes. That number, of course, could change after Election Day. Democrats need to gain nine seats in the 150-member chamber to gain control of the House for the first time in nearly two decades. Dozens of House seats are widely viewed as competitive. The House will vote for a new speaker when the Legislature convenes in January for its 87th legislative session, a 140-day stretch that will feature a difficult budget-writing task due to the economic shortfall from the coronavirus pandemic. The Legislature is also expected to take up redistricting and several other challenging issues next year.