Denton Texas employment levels continued to rebound in June, but it is obvious more state and federal assistance will be needed to weather the Covid-related job losses. Yesterday Texas reported the 3rd consecutive day of triple digit fatalities and a record high single day death toll of 174 people. Denton County saw its largest one day spike in coronavirus cases during the pandemic.
The recent spike in Covid cases and fatalities in the state of Texas has put Texas’ economic reopening on hold. The start of the new school year is still a moving target for many districts. Anxiety levels are understandably elevated. Many Denton area businesses have rehired employees with help from the Paycheck Protection Program. Others have not been so fortunate. The coronavirus is apparently more patient than many Texans, and that means the economic toll will likely be higher than some had imagined.
The Texas Workforce Commission employment update for June shows that the unemployment in the City of Denton shrank by roughly 3000 jobs. That still puts the unemployment levels at double what they were prior to the pandemic. A total of 69,877 people were employed in Denton in June, but that is more than 5000 fewer jobs than what we saw in February. Unemployment statistics for Denton County showed 38,635 people with out a job in June. That was down from the April spike, but roughly 2 and half times the level seen in February. Denton County has lost over 35,000 jobs this year according to updated TWC employment statistics.
With coronavirus cases spiking again in many parts of the country, Congress will be hashing out the details of a second round of stimulus. Some administration officials are calling for payroll tax cuts, while others in Congress are in favor of continued unemployment measures and/or another round of direct payments to families. There is a lot at stake because the sustainability will no doubt hinge on more stimulus. With Cares Act payments set to expire in another week or two, many families and businesses are making plans for a continued economic downturn. There’s a reason major U.S. banks are beefing up their loan loss provisions. They are also lining their pockets. Major banks stand to make billions in fees for processing Cares Act loans. Never waste an opportunity as they say.
If the coronavirus issues stabilize, Denton employment levels could continue to improve. No one really knows what the second half of 2020 is going to look like because the virus is still in control. What is not in question is the profound impact Covid 19 has had on the employment sector and the economy. The local housing market was showing signs of rebounding in June, but the recovery could be fleeting. Assuming all the jobs do come back, there will be a much larger debt burden to work through. That debt burden will remain even if the virus disappears. The reality is that employment opportunity doesn’t mean the same thing it did 50 years ago. America’s middle class has been eviscerated after decades of trickle-down fiscal, monetary and economic policies.
“even when the public-health crisis has abated, the gargantuan political task for the years and decades ahead will be the restoration of employment opportunity that will enable all Americans to live healthy, secure, and happy lives.”
Over 50 million people have filed for weekly unemployment claims in the U.S. this year. Unemployment claims are still running at over a million per week! There are at least 32 million Americans currently receiving some form of state or federal unemployment assistance. To say that the official employment rebound might overstate the true nature of the economic recovery would be a mild understatement.
A more accurate reflection of the U.S. economy can be found in the 30-year mortgage interest rate. It just hit a low not seen in 50 years.
To put things in larger historical context, the monthly federal budget deficit for June was $864 billion. No, that’s not a misprint. That’s more money than the entire yearly defense budget. If you think the U.S. labor market has recovered, you simply aren’t paying attention.
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