Texas' job creation got back on track in June as employers added 32,000 jobs, outpacing every other state and showing strength after sluggish May payroll increases.
Economists say the state's energy sector is the main driver, but the state also made notable - if surprising and perhaps temporary - gains in the government sector.
Despite the gains, the state jobless rate climbed to 8.2 percent, up from 8.0 percent in May, the Texas Workforce Commission said Friday.
"As businesses continue to shift resources into Texas, new opportunities arise for job seekers already here, and for those who come here looking for opportunity," Texas Workforce Commission Chairman Tom Pauken said.
According to revised May payroll numbers, Texas' unemployment rate held steady at 8 percent, but payrolls rose by only 2,100 jobs, taking economists by surprise after seven months of rebounding employment numbers.
The state report comes just weeks after the U.S. Department of Labor estimated the country added a net of just 18,000 jobs in June.
For economists, that fact underscores Texas' distinct ability to create jobs.
"When has there been a single state of decent size that so outperforms the rest of the nation? That's pretty unique," said Edward Friedman, an economist with Moody's Analytics in West Chester, Pa.
Lucy Nashed, a spokeswoman for Gov. Rick Perry, said the state's low taxes, predictable regulatory climate, legal system and skilled workforce attract job-creating employers.
'Energy leading'
In judging Texas' growth, Friedman pointed to exports and proximity to Latin America's emerging markets, the high-tech industries in Austin and Dallas, and little exposure to the auto and homebuilding industries that have hampered other regions of the country.
"All the industries are cooking, but energy is leading the way," he said.
Texas' goods-producing industries, meaning manufacturing, construction and mining and logging, boosted payrolls with a combined 11,200 jobs last month.
In manufacturing, payrolls soared by 8,400 jobs, after adding 2,200 jobs in May. Mining and logging employment saw an increase of 3,200 jobs last month after adding 4,600 jobs in May.
"The growth in goods-producing sectors is particularly encouraging, as most of that activity is export oriented," Waco economist Ray Perryman said.
"The relative strength of the energy sector is clearly playing a role."
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