For this article, let’s talk about unemployment. This is an unpleasant topic, but it is an important one. Unemployed folks represent an available workforce for a local employer. Most unemployment is short term as folks transition from one job to the next, lasting only a month or so. Some unemployment is long-term where folks struggle to find their next job.
The number to remember is 5%. Most economists consider an unemployment rate of 5% to be “full-employment” where those who want to get a job can get one. In other words, a 5% unemployment rate is pretty much only transitory workers between jobs.
Here’s the cool part. Milam County’s unemployment rate has been below 5% since December 2021.
The Texas Workforce Commission collects unemployment data for each county and releases this data about once a month. This data goes back to January 2000, and we can see the ebbs and flows of the local labor market.
What does this mean? Milam County, like the rest of Texas, has a very tight labor market which is good for workers. It means that our neighbors who want to get a job should have a much easier time finding work. And they should be able to ask for and get higher pay with better benefits.
A larger employed workforce has some other benefits for the community. More people working will translate into more wealth created which should reduce poverty and income inequality. More jobs created leads to more houses being built, which leads to more retail. The improved labor market will help attract other retail and restaurant businesses to Rockdale. More construction and retail businesses will help the city generate more tax revenue which can be reinvested to improve the community.
Milam County has not experienced unemployment rates this low since 20062007, right before the Alcoa closure. Nationally, we have not experienced rates this low since the late 90s and mid-2000s.
Unless there is a major recession or other economic disruption, the Central Texas economic engine should hum along for the foreseeable future.
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