Texas Economy In Trouble? State Sees Record Unemployment During Coronavirus

As the coronavirus takes its toll on Texas’ economy, the Lone Star State experienced a record 12.8% unemployment rate in April, according to data published Friday by the Labor Department. More than 2 million Texans have applied for unemployment amid the pandemic.

State officials have pushed reopening businesses as the main strategy to revive the economy. Restaurants are now allowed to open at 50% capacity, while bars are allowed 25% capacity in indoor spaces. Malls have reopened in a limited manner, while rodeo and equestrian events are allowed to take place at 25% capacity.

Lower energy prices have also hurt the Texas oil industry. Ray Perryman, CEO of the Texas economic research firm Perryman Group, told CBS that he projects up to a million jobs tied to the fossil fuel industry could be lost this year.

“When energy prices are high, that’s good for the state coffers in Texas,” Steven Beach, dean of the College of Business at the University of Texas Permian Basin told the Texas Tribune. Taxes on oil and gas are an important part of Texas state revenue.

In March, Texas Gov. Greg Abbott declared a state of emergency due to the virus. A model released last week by the Children’s Hospital of Pennsylvania claimed that heavily populated areas of Texas could soon see a surge in cases.

As of Sunday at 10:30 a.m. ET, there are 53,449 cases of the coronavirus in Texas, with the state’s death toll at 1,480.