DALLAS – (WBAP/KLIF) – The Dallas Federal Reserve predicts the Covid-19 battered Texas economy will begin to recover about halfway through 2021; about the time the Covid-19 vaccines become available to all Texans. In a survey in which 75% of business owners responded, 20 percent said they were laying off employees and reducing expenses.
Hotels and offices appear to be hit the hardest in response to the pandemic, jobs grew by 40 thousand in November, compared to October’s increase of 105 thousand. Vacancy rates for office real estate have dramatically increased statewide since the first quarter; attributed to both worsening conditions and more workers toiling from home.
One bright spot during the pandemic difficulties is a reported 9.3% jump in total building permits (single family and multifamily) ahead of the same period in 2019. Indicators suggest that residential building will remain strong through at least midyear 2021.
Keith Phillips, Assistant Vice President and Senior Economic with the San Antonio Branch of the Federal Reserve Bank of Dallas, co-author of the report, believes the Texas economy will turn around when most or all Texans have access to the Covid-9 vaccines; about mid year, 2021.
The Dallas Fed will release its 2021 Texas jobs forecast during a live webcast on Jan. 29.
View the report at https://www.dallasfed.org/research/economics/2020/1224
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