Business Economics

Dallas Fed Economics: Labor shortages, supply chain woes slow Texas recovery | KLBK | KAMC

(Photo provided by the Federal Reserve Bank of Dallas)

DALLAS (NEWS RELEASE) — The following is a news release from the Federal Reserve Bank of Dallas:

Texas jobs have expanded at a robust 4.0 percent year to date through May though growth moderated in April and May, according to the Federal Reserve Bank of Dallas’ latest Texas Economic Update.

“The Texas economy is on the path to a solid recovery although the pace of growth has slowed due to supply-side issues, such as difficulty finding workers, and wide-scale shortages of materials,” said Dallas Fed Senior Business Economist Laila Assanie in a video accompanying the report.

Labor demand appears to be elevated at a time of limited supply, according to the May Texas Business Outlook Surveys. About half of Texas firms are trying to fill open positions, with a majority of those looking for workers finding the search difficult, particularly for low-skill positions.

Home-price gains have continued, reflecting a significant imbalance between supply and demand.

“Activity in the Texas residential real estate market is red-hot,” Assanie said. “Home sales remain elevated, and home prices are rising at a record pace. Apartment rents and demand are also growing at a rapid clip after experiencing some weakness in 2020.”

(News release from the Federal Reserve Bank of Dallas)