Willis comments on Workforce Solutions’ latest labor market report

MCALLEN, Texas – Mike Willis, executive director of the South Texas Manufacturers Association, has commented on Workforce Solutions Lower Rio’s labor market report for March 2024.

Willis said:

“Unemployment rates at the County level continued to decrease in Hidalgo, Cameron, and Starr Counties. Hidalgo and Cameron counties are now .2-.3% lower than this time last year. The labor market continues to tighten up.

“Year-over-year, our civilian labor force grew only 0.2% in Hidalgo county, and grew 1.0% in Cameron County – not much help there.

“Historically, we see a declining unemployment rate in March, until the summer school layoffs increases it, so this month’s report is typical of this time of the year.

“In 2022 & 2023 we benefitted from people returning back to the labor force from the sidelines post-covid, and as higher wage rates attracted more people to go to work. The labor force participation rates have fully recovered from the pandemic, so I anticipate we will have to rely on immigration into our region from other states or countries to grow our CLF in Texas and the RGV.

“As I have mentioned previously, we have a very effective legal work visa program for agricultural, technical, and high-skilled workers, but the caps are woefully insufficient to help meet the excess demand for workers, and neither political party appears to be motivated to address this issue.”

Workforce Solutions Lower Rio’s labor market report for March 2024 is based on the Texas Workforce Commission’s March Labor Market and Employment reports. The report showed the seasonally adjusted national unemployment rate decreasing by (.1) to 3.8%. The Texas seasonally adjusted unemployment rate remained at 3.9%.

Statewide Overview: Texas had a gain of 19,100 non-agricultural jobs in March and a gain of 270,700 jobs in the past year (seasonally adjusted). This represents an annual employment increase rate of 2.0 %.

Goods-Producing industry sector employment increased by 2,300 jobs in March with a total of 43,900 jobs gained in the past twelve months. This sector increased at a 2.2% annual rate. The Mining and Logging industry had the most job growth for this month with 3,700 jobs added, which had an annual decreasing rate of -1.0% representing -2,200 jobs added.

The Service-Providing industry sector increased by 16,800 jobs in March with a total of 226,800 jobs gained in the past twelve months. This sector increased at a 1.9% annual rate. The Leisure and Hospitality industry had the most job growth with an additional 7,300 jobs increasing at a 2.6% annual rate. The Government industry had the second most job growth for this month with 6,100 jobs added, which had an annual increasing rate of 3.4% representing 62,800 jobs added.

Regional Unemployment Recap: The March unemployment rates decreased in Hidalgo (0.2%) and Starr (.8%) counties, while Willacy County increased (.3%).

Counties 

• Hidalgo County decreased by 0.2% to 6.0%
• Cameron County decreased by 0.4% to 5.4%
• Starr County decreased by 0.3% to 9.8%
• Willacy County decreased by 0.6% to 7.3%
• Webb County decreased by 0.5% to 4.3%

Cities

• McAllen and Edinburg have the lowest unemployment rate in the Rio Grande Valley (RGV) at a rate of 4.5%
• Mission unemployment rate decreased by 0.4% to 5.5%
• Laredo unemployment rate increased by 0.4% to 4.3%
• Harlingen unemployment rate increased by 0.3% to 5.4%
• Brownsville unemployment rate increased by 0.4% to 5.5%

RGV Economy

During the month of March, the RGV’s (McAllen & Brownsville MSA’s) economy experienced a job loss of -300 individuals exited the workforce. Workforce Solutions (WFS) directly contributed employment efforts by assisting 763 individuals enter employment. WFS partnered with businesses to address their hiring needs by hosting 12 hiring events with 12 participating employers and 285 job seekers in attendance, resulting in 483 job offers. Additionally, WFS served a total of 1,496 employers representing 2,440 job openings, resulting in 129 direct hires and another 634 indirect hires.