The federal government estimates the downturn in the oil and gas industry has hurt Texas more than originally thought. The Federal Reserve Bank of Dallas announced this week it doubled its estimates of job losses in the state this year through October.
The Bank expects nearly 8,100 job losses in the state’s oil and gas sector, more than double from an earlier estimate of 4,000 losses.
Employment in the U.S oil and gas sector fell for the first time in 14 months in November, according to data from the U.S. Bureau of Labor Statistics.
The report also shows home prices and sales have fallen in Texas’ Permian Basin as more people in the state’s oil and gas sector are likely to lose jobs.
Median home price in the basin was $301,045 in October, down 2.6% from August, when it peaked at $309,094, while monthly home sales edged lower to 372 units in October, dropping 3.6% from the previous month, the report said.
U.S. oil prices have hovered below $60 a barrel for most part of the year, prompting many energy firms to cut staff and reduce budgets, even as major oil exporting countries have curbed production.
Source: Reuters
