The Texas economy could experience some trouble despite the unlikelihood of a recession next year. That's according to the president and CEO of the Federal Reserve Bank of Dallas.
While Texas’s low taxes and business-friendly regulations are welcome sights for job creators, Rob Kaplan said, both as a singular formula may not sustain the state in the future. According to Kaplan, the Lone Star State must begin prioritizing for its residents, especially those considered at-risk, by investing in education, expanded health care access and other essential areas.
Investing in the at-risk the population will bolster the workforce and preserve the consistently strong state economy, he said, though consumer spending growth has kept the risk of recession in 2020 relatively low.
Texas is among several states that consistently experiences positive job figures. Texas’s unemployment rate remained at 3.4 percent for more than three consecutive months, even with a recent slight downturn. The Texas Workforce Commission reported that unemployment statewide has been at a record low since it was first tracked almost 45 years ago.
Kaplan said the workforce is shrinking because American workers are aging and retiring. He suggests policymakers improve child care policies and provide more transportation options, as well as implement immigration reform with a focus on skills.
Texas is home to many refineries, petrochemical plants and ports, which is why he said he was highlighting the importance of planning ahead of natural catastrophes and safeguarding these assets.
Climate change presents an economic opportunity for the Lone Star State, which is the nation’s biggest producer of wind power.