Fed says worst of oil slump is over?
The oil industry has been saying for months that the worst of the oil bust is over.The Texas economy has shown resilience throughout the oil slump with its unemployment rate being below the national average for the entire slump. Drilling activity is certainly picking up especially in the Permian Basin of West Texas.
Now the Fed is too.
Tuesday, the Federal Reserve Bank of Dallas said that jobs in the state increased 3.2 percent in July and 2.6 percent in August — outpacing the nation and improving “significantly” in recent months.
“We’ve been encouraged by this because it suggests that the worst of the energy crisis may be over,” said Fed economist Pia Orrenius.
Orrenius noted that the jobs uptick was across sectors, from services to good-producers. But, “most remarkably,” she said, oil and gas employment in August also increased. And while by just a tick — 1.2 percent — it was a phenomenon unseen since 2014.