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Fiscal Notes

 

A Review of the Texas Economy from the Office of Susan Combs, Texas Comptroller of Public Accounts · Dec 2011

The Fastest-Growing, Highest-Paying
Texas Industries

By Mark Wangrin/Bruce Wright

It’s no secret that Texas is dominating job creation in the U.S., despite a still-weak national economy. But what industries are growing fastest and paying the most?

In this issue, Fiscal Notes takes a look at some of the state’s fastest-growing industries that offer better-than-average wages, defined as pay exceeding the state average of $902 weekly in 2010. We define industries according to the federal government’s North American Industry Classification System, while growth figures for the years 2006 through 2010 come from statistics maintained by the Texas Workforce Commission (TWC).

Energy Stays Strong

Generally high energy prices helped Texas’ oil and gas-related companies grow rapidly in the last five years, providing valuable support for the state during a recessionary period.

Employment in oil and natural gas extraction rose by 15.6 percent or more than 11,000 jobs between 2006 and 2010, registering the fourth-highest growth among industries in percent terms and fifth-highest by the number of additional jobs created. Average weekly wages of $3,273 in 2010 were the highest among the fastest-growing industries, more than tripling the overall state average.

Related pursuits were buoyed as well. Support activities for mining – the various service companies needed to drill and maintain oil and gas wells – added 9,565 jobs from 2006 to 2010, for a total growth of 9.2 percent. The industry ranked seventh-highest in terms of numerical growth and ninth for percent growth, and produced average weekly wages of $1,639, well above the state average.

Another related industry, pipeline transportation, added 2,123 jobs for a 15.4 percent growth rate, fifth-highest in percentage terms. These jobs paid average wages of $2,497 a week.

It’s also important to note that TWC’s numbers don’t reflect contract workers, who do not receive benefits and typically are not covered in official government estimates. According to David Green, research analyst with the Comptroller’s office, energy companies often use contract workers to contain operating costs in lean fiscal times.

“Including contract workers produces an even brighter picture of overall employment in the oil and gas industry,” Green says.

Medical, Technical Skills Sought

Jobs in health services are another important element in Texas’ employment growth, due mostly to a growing and aging population.

Hospitals in particular are large, rapidly growing employers in the state. According to TWC, hospitals created an additional 41,653 jobs from 2006 to 2010, an 11.5 percent growth rate. Hospitals were the second-biggest source of numerical job growth, and paid an average of $1,015 weekly in 2010.

The largest numerical gain between 2006 and 2010, however, came from professional, scientific and technical services, a broad range of companies that, according to the U.S. Census definition of this category, involve “production processes that are almost wholly dependent on worker skills,” often requiring college degrees.

This industry led all others in increasing job count between 2006 and 2010, generating nearly 44,000 additional positions for total growth of 8.3 percent. The demands of these positions are reflected in above-average weekly wages of $1,472 in 2010.

Business and Investment

Another rapid-growth area for jobs was the management of companies and enterprises. This category, something of a catch-all, includes holding companies (companies that exist primarily to invest in other companies) as well as jobs in corporate, subsidiary and regional managing offices that involve services such as accounting, bookkeeping, billing, legal services, marketing, advertising and personnel management.

The category added 23,212 net jobs between 2006 and 2010, and led all others in growth rate, expanding by 41.4 percent over five years. It also pays more than twice the average Texas weekly wage, at $1,922.

Employment in financial investment and related activities, including underwriters, brokers, investment advisors and portfolio managers, added 5,310 jobs from 2006 to 2010, for a total growth rate of 12.4 percent. This performance placed the industry on the top 10 list in both numerical and percentage growth. Its average weekly pay of $2,604 in 2010 was nearly three times as high as the average state wage. FN

For more data on Texas employment, visit the Texas Workforce Commission’s Labor Market & Career Information Department.