Across the nation, rising state-local tax burdens and onerous regulatory environments have been a thorn in the side of job creation. But here in the Lone Star State, the Texas Model has helped to create an economic climate that has facilitated strong job growth.
Last week, the Texas Workforce Commission released more positive news regarding job creation in Texas. For the 22nd consecutive month, the Texas economy has added jobs, with 12,500 net new jobs added in the month of May. And for the 65th consecutive month, Texas’ unemployment rate has been at or below the national average. Currently, Texas’ seasonally adjusted unemployment rate is at 6.9 percent, which is more than a full percentage point less than the national average of 8.2 percent.
Texas’ jobs success is no new phenomenon. Over the past year the Texas economic engine created jobs at an impressive pace. From May 2011 to May 2012, Texas added 237,100 seasonally adjusted new jobs, which is more than any other large state in the nation, including states such as Florida, New York, California, and Illinois (see chart below).
Is there something in the water in Texas, or is Texas’ ever-improving jobs picture proof of the power of a low state-local tax burden, a favorable regulatory environment, and a sound civil justice system?
Perhaps it is time for other states to seriously consider following the Texas Model.
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