For the first time in 12 years, Texas job creation has been lagging behind the rest of the nation. The numbers come from a new study by the Austin non-profit Texas Taxpayers and Research Association. “The ‘Texas Miracle,’ as our state’s nation-leading economic engine has been dubbed, is currently on ice,” said Dale Craymer, the author of the report.
A large part of the blame can be placed on the sharp decline of oil prices that began nearly two years ago, says the Lubbock Avalanche-Journal. Over the past year, oil and gas companies have cut investment by more than $80 billion and payrolls by 65,000. The effects have rippled through the economy.
Texas has a quarter million fewer payrolls than it would with a healthy oil sector. Low oil revenues also affects the state’s coffers; 14 percent of the state revenues come from oil and gas taxes. Sen. Kel Seliger, a member of the Senate Finance Committee, said the Legislature must tackle the effect of low oil prices on the Texas economy.