The Changing Face of the Texas Labor Market. Labor Market & Career Information (LMCI) Texas Workforce Commission [email protected] (512) 936-3105 www.lmci.state.tx.us www.texaswages.com www.texasindustryprofiles.com. May 2010 Texas Manufacturing Outlook.
Texas State Data Center
Aug 2007 = 1.43 Mar 2010 = 4.02
YUM Brands34.5% (50.1%)
Ford 30.4% (53.1%)
Boeing 34.3% (40.8%)
Coca Cola61.0% (73.8%)
Emerson Electric40% (51.6%)
Motorola 52.5% (49.4%)
John Deere25.1% (34.6%)
Campbell Soup (31.0%)
Molson Coors (55.4%)
3M Corporation (61.4)Emerging Markets in a Global Economy:Percent of 2000 & 2007 Revenue Outside U.S.
1. Work existing workers more hours
2. Move part-timers to full-time, recall workers
3. Embrace technology for labor substitution
4. Employ temporary, leased or contract workers for fixed periods
5. Reconsider work/hiring physical location
6. Outsource all non-core business functions
7. Consider strategic partnerships to increase sales, limit labor liability
8. Take advantage of foreign labor (H1B, L1 visas)
9. Add full-time domestic employees (FTE)
What happens when employers don’t make it to the stage of adding FTEs?
1. An uneven recovery is underway, but not for every person or business sector. Texas better than most, but not immune from the same forces
2. Political uncertainty is inhibiting consumer spending & business investment e.g. healthcare, cap & trade, taxes, stimulus
3. Manufacturing will continue to shed net jobs: Expect less job sustainability after inventory adjustment cycle
4. Credit is still a problem. TX banks do better. Who wants a loan? Who qualifies under these conditions?
5. Real estate problems not over. Texas better than most. Watch commercial real estate loan defaults
7. Job losses slowed but expect weak new hire activity despite the economic recovery. Texas will likely be last in and among the first out.
8. Lower property tax revenues & declining sales taxes will affect state & local government budgets and job growth. Expect public sector layoffs.
9. Ripple effects of slower retail sales, less construction will impact the service sector. Health care, education, government jobs will do better than most.
10. Strong U.S. dollar compared to € Euro could dampen U.S. exports. Doubly bad for Texas as #1 export state.