Dallas Fed: Good News, Kind of, for Permian Basin
The Federal Reserve Bank of Dallas’ recent economic report on the Permian Basin was mixed. On the one hand, the Midland-Odessa job market still struggles; the combined unemployment rate stood at 5.5% in October, well above the state’s 4.8% and the U.S. rate of 5.1%.
Furthermore, jobs in the mining, logging and construction sector grew two months in a row, at a 5.1% annualized rate, even as trade, transportation and utilities dropped by 4.5% year to date, annualized.
Housing prices are stable in Midland, and on the rise in Odessa. Even better news was that the rig count held steady in October, and that surpassed 2015 levels. The Dallas Fed pointed out that, from September to October, the average rig count increased from 202 to 207. As such, while the gains continue small, “the recovery is still a good sign for Midland-Odessa employment,” the Dallas Fed noted.
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