Dallas Fed: After tough 2020, job growth expected this year

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In this Aug. 15, 2019, photo a “Now hiring” sign is displayed on the front door of a Staples store in Manchester, N.H. On Thursday, Sept. 5, payroll processor ADP reports how many jobs private employers added in August. (AP Photo/Charles Krupa)

DALLAS, Texas (Nexstar) – After a difficult end to 2020, the Federal Reserve in Dallas is projecting job growth this year.

The Federal Reserve says they’ve based their projects on national forecasts, COVID-19 hospitalizations, and oil future prices, estimating job growth will be around 4.2 percent in 2021.

“In December, despite a sharp rise in COVID-19 cases, Texas job growth picked up as mobility and engagement (MEI) continued to rise,” Keith Phillips, Dallas Fed assistance VP and senior economist said in a statement. “However, cases and hospitalizations accelerated further from mid-December to mid-January, reaching new records. A decline in the MEI and other high-frequency data during this period suggest a sharp weakening of job growth in January, as shown by the Texas Weekly Employment Index. However, a recent decline in COVID-19 hospitalizations suggests a peak may have occurred near the third week of January. A continued decline in new infections and hospitalization would likely result in improved job growth in February and March.”

The jobs forecast from the Dallas Fed estimates 518,000 jobs will be added in the state this year.

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