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From 2010 to 2019, the state created more jobs through business transfers than any other state, according to a study by the Federal Reserve Bank of Dallas.
DALLAS — This article originally appeared in The Texas Tribune.
Texas gained more jobs over the past decade from companies relocating from other areas than any other state, according to a report released Friday by the Dallas Fed.
From 2010 to 2019, more than 25,000 businesses moved to Texas, creating more than 281,000 jobs, resulting in an increase of 103,000 jobs across the state, according to data compiled by the Federal Reserve. Nearby employment has increased.
Pia Olenius, senior economist at the Federal Reserve, said the report’s findings are similar to previous findings and expects this trend to continue in the coming years.
According to the report, companies find Texas attractive for relocating to Texas for a variety of reasons, including its central location in the continental United States, access to several major cities, and business-friendly environment.
The state also has one of the nation’s largest state programs for attracting business, the Texas Enterprise Fund, and the now-expired Chapter 313 program, which gives companies a 10-year tax break in exchange for attracting business. ) and various other incentive programs. Contribute to local economic growth and the school district.
However, research from the Federal Reserve Bank of Dallas shows that when companies value location and location, attractive economic fundamentals such as low taxes, low regulation, population growth, relatively low costs of living, and decreased union activity ) turned out to be far more important than incentive packages. Expansion decisions.
“A review of these studies indicates that at least 75% of companies that received incentives would have made similar location, expansion, or retention decisions without the incentives,” the report said.
The state’s strong economic growth has come with side effects. As Texas’ population and economy grew, home prices and rents rose, putting more pressure on renters and making it increasingly difficult for renters to become homeowners. U.S. Census data shows that housing production has not kept pace with household growth, contributing to the state’s soaring housing costs.
California is the nation’s largest net exporter of jobs, and Texas is a preferred destination for companies exiting the state. Other states included Louisiana, New Jersey, and Oklahoma.
The report also found that professional and business services accounted for about 30% of jobs moving to the state, followed by manufacturing at 17.7% and trade, transportation and public works at 17%. did.
The Texas economy created approximately 1.4 million jobs and lost 1.2 million jobs annually from 2010 to 2019, resulting in an average net gain of approximately 216,000 jobs annually. Business relocations accounted for a relatively small portion of total job creation and job losses during this period.
Most of the companies relocating landed in metropolitan areas like Dallas and Houston. 53% of arriving businesses were concentrated in urban areas, while suburban and rural areas accounted for 36% and 12%. Small businesses, especially those with fewer than 500 employees, accounted for about three-quarters of the jobs moving to Texas.
Although the number of business relocations is high, they account for only a small percentage of the total number of businesses in Texas, about 0.04%, the report said.
Joshua Fechter contributed to this article.
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