<!DOCTYPE html> <!-- enableHeaderFooterControlByParameter : false --> <html class="ltr no-js " dir="ltr" lang="en-US"> <head> <meta charset="utf-8"> <meta http-equiv="x-ua-compatible" content="ie=edge"> <meta name="author" content="News Release & Posted By Staff | newsweb@everythingLubbock.com "> <meta name="viewport" content="width=device-width, initial-scale=1, maximum-scale=1, user-scalable=no"> <!--Custom meta tags--> <!--page refresh meta start--> <!--page refresh meta end --> <title>Hurricane Harvey Unlikely to Derail Texas' Positive Economic </title> <script type="application/ld+json"> { "@context": "http://schema.org", "publisher": { "@type": "Organization", "name": "EVERYTHINGLUBBOCK", "logo": { "@type": "ImageObject", "url": "" } }, "@type": "NewsArticle", "mainEntityOfPage": { "@type": "WebPage", "@id": "http://www.everythinglubbock.com/news/state-regional/hurricane-harvey-unlikely-to-derail-texas-positive-economic-momentum-says-dallas-fed-economist/822222835" } , "headline": "Hurricane Harvey Unlikely to Derail Texas' Positive Economic Momentum, Says Dallas Fed Economist", "description": "With damage costs estimated at $85 billion and up, Harvey is likely to be one of the costliest U.S. hurricanes-ahead of Sandy and behind Katrina.", "author": { "@type": "Person", "name": "News Release & Posted By Staff | newsweb@everythingLubbock.com " }, "datePublished": "2017-10-01T14:45:54-0500", "dateModified": "2017-10-01T14:45:54-0500", "dateline": "DALLAS, TX (NEWS RELEASE)", "articleBody": "&lt;p&gt;Hurricane Harvey wreaked havoc on property and infrastructure, but the storm&amp;#39;s negative effects are unlikely to throw the Texas economy off course, according to the &lt;a href=&#034;https://www.dallasfed.org/research/update/reg/2017/1706&#034;&gt;Federal Reserve Bank of Dallas&amp;#39; Texas Economic Update&lt;/a&gt;.&lt;/p&gt;&lt;p&gt;&amp;quot;The storm&amp;#39;s negative impact on employment and other business activity is expected to be transitory and should not derail the state&amp;#39;s positive economic momentum,&amp;quot; Dallas Fed Senior Business Economist Laila Assanie said in a &lt;a href=&#034;https://www.youtube.com/watch?v=HWrRoSGlPxU&amp;amp;feature=youtu.be&#034;&gt;video&lt;/a&gt; accompanying the report&amp;#39;s release.&lt;/p&gt;&lt;p&gt;Before Harvey made landfall on Aug. 25, state job gains were solid and unemployment was at its lowest level in a decade, according to the report. After the hurricane hit, Texas initial claims for unemployment spiked above 65,000 but have come down since.&lt;br /&gt; &amp;nbsp;&lt;br /&gt; &amp;quot;Following Hurricane Ike in 2008, we saw a spike in Texas initial unemployment claims, and they remained elevated for about five weeks,&amp;quot; Assanie said. &amp;quot;Given that the magnitude of the disruption caused by Harvey was larger than Ike, the expectation is that claims will likely remain elevated for a similar or longer period.&amp;quot;&lt;br /&gt; &amp;nbsp;&lt;br /&gt; With damage costs estimated at $85 billion and up, Harvey is likely to be one of the costliest U.S. hurricanes-ahead of Sandy and behind Katrina. As the cleanup proceeds, increased tightening of the state labor market may put the squeeze on employers already struggling to find workers.&lt;br /&gt; &amp;nbsp;&lt;br /&gt; &amp;quot;With a limited labor pool from which to choose, employers are reporting worker shortages and difficulty hiring,&amp;quot; Assanie said. &amp;quot;Labor demand will increase, particularly in construction, as post-hurricane repair and restoration work gets underway. This will exacerbate labor shortages, pushing up material and labor costs.&amp;quot;&lt;br /&gt; &amp;nbsp;&lt;br /&gt; In the longer run, however, the state&amp;#39;s economy should bounce back, according to the report. Dallas Fed analysis of the effect of Hurricane Harvey on employment suggests that jobs will fall sharply in September, by 54,200 to 73,700 on the Gulf Coast and 37,800 to 60,400 statewide. Employment will likely rebound to trend growth along the Gulf Coast by year-end and in Texas in October.&lt;br /&gt; &amp;nbsp;&lt;br /&gt; &amp;quot;The long-term impact of Hurricane Harvey is expected to be limited,&amp;quot; Assanie said. &amp;quot;Houston will rebound because of its importance as the energy capital of the U.S. and as a center for business and trade. Other thriving parts of the Gulf Coast affected by the hurricane will gradually recover as well.&amp;quot;&lt;/p&gt;&lt;p&gt;(News release from the Federal Reserve Bank of Dallas)&lt;br /&gt; &amp;nbsp;&lt;/p&gt;&lt;p&gt;&amp;nbsp;&lt;/p&gt;&lt;p&gt;&lt;br /&gt; &amp;nbsp;&lt;/p&gt;", "image": { "@type": "ImageObject", "url": "http://static.lakana.com/nxsglobal/everythinglubbock/photo/2017/10/01/Texas%20State%20Outline%20_AMP_%20Flag%20-%20720_1506887084319_27050364_ver1.0_640_360.jpg", "height": "360", "width": "640" } } </script> <meta content="text/html; charset=UTF-8" http-equiv="content-type" /> <meta name="description" content="With damage costs estimated at $85 billion and up, Harvey is likely to be one of the costliest U.S. hurricanes-ahead of Sandy and behind Katrina." lang="en-US" /> <meta name="keywords" content="State &amp; Regional" lang="en-US" /> <script>/*<![CDATA[*/var _head_start=new Date();/*]]>*/</script> <meta property="og:title" content="Hurricane Harvey Unlikely to Derail Texas' Positive Economic Momentum, Says Dallas Fed Economist"/><meta property="og:description" content="With damage costs estimated at $85 billion and up, Harvey is likely to be one of the costliest U.S. hurricanes-ahead of Sandy and behind Katrina. 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                <h1 class="headline">Hurricane Harvey Unlikely to Derail Texas' Positive Economic Momentum, Says Dallas Fed Economist</h1>
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                                            <p class="posted"><strong>Posted:</strong> Oct 01, 2017 02:45 PM CDT</p>
                                                                <p class="updated"><strong>Updated:</strong> Oct 01, 2017 02:45 PM CDT</p>
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            <p>DALLAS, TX (NEWS RELEASE) - Hurricane Harvey wreaked havoc on property and infrastructure, but the storm&#39;s negative effects are unlikely to throw the Texas economy off course, according to the <a href="https://www.dallasfed.org/research/update/reg/2017/1706">Federal Reserve Bank of Dallas&#39; Texas Economic Update</a>.</p><p>&quot;The storm&#39;s negative impact on employment and other business activity is expected to be transitory and should not derail the state&#39;s positive economic momentum,&quot; Dallas Fed Senior Business Economist Laila Assanie said in a <a href="https://www.youtube.com/watch?v=HWrRoSGlPxU&amp;feature=youtu.be">video</a> accompanying the report&#39;s release.</p><p>Before Harvey made landfall on Aug. 25, state job gains were solid and unemployment was at its lowest level in a decade, according to the report. After the hurricane hit, Texas initial claims for unemployment spiked above 65,000 but have come down since.<br /> &nbsp;<br /> &quot;Following Hurricane Ike in 2008, we saw a spike in Texas initial unemployment claims, and they remained elevated for about five weeks,&quot; Assanie said. &quot;Given that the magnitude of the disruption caused by Harvey was larger than Ike, the expectation is that claims will likely remain elevated for a similar or longer period.&quot;<br /> &nbsp;<br /> With damage costs estimated at $85 billion and up, Harvey is likely to be one of the costliest U.S. hurricanes-ahead of Sandy and behind Katrina. As the cleanup proceeds, increased tightening of the state labor market may put the squeeze on employers already struggling to find workers.<br /> &nbsp;<br /> &quot;With a limited labor pool from which to choose, employers are reporting worker shortages and difficulty hiring,&quot; Assanie said. &quot;Labor demand will increase, particularly in construction, as post-hurricane repair and restoration work gets underway. This will exacerbate labor shortages, pushing up material and labor costs.&quot;<br /> &nbsp;<br /> In the longer run, however, the state&#39;s economy should bounce back, according to the report. Dallas Fed analysis of the effect of Hurricane Harvey on employment suggests that jobs will fall sharply in September, by 54,200 to 73,700 on the Gulf Coast and 37,800 to 60,400 statewide. Employment will likely rebound to trend growth along the Gulf Coast by year-end and in Texas in October.<br /> &nbsp;<br /> &quot;The long-term impact of Hurricane Harvey is expected to be limited,&quot; Assanie said. &quot;Houston will rebound because of its importance as the energy capital of the U.S. and as a center for business and trade. Other thriving parts of the Gulf Coast affected by the hurricane will gradually recover as well.&quot;</p><p>(News release from the Federal Reserve Bank of Dallas)<br /> &nbsp;</p><p>&nbsp;</p><p><br /> &nbsp;</p> <!-- story body ends --> <div class="pagination-centered"> <ul class="pagination"> </ul> </div> </div> <footer class="mod-footer"> <div class="footer-text"> <p class="copyright">Copyright 2018 Nexstar Broadcasting, Inc. All rights reserved. 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