The Comptroller’s most recent edition of Fiscal Notes takes a closer look at some of the industries most affected by the pandemic such as leisure and hospitality providers, restaurants and bars, retailers, passenger airlines, and hospitals. Texas’ unemployment rate spiked at 13.5% in April 2020, and by November 1.15 million Texans remained unemployed. Low-wage workers, disproportionately employed in service industries, bore the brunt of job losses.
Restaurants and bars suffered the heaviest total losses, falling by 10.1% or 112,500 jobs. Arts, entertainment, and recreation industries experienced the greatest percentage decline at 29.6% or 42,800 jobs. Texas has more than 500 hospitals, more than any other state, that have struggled to meet unprecedented demand and have lost significant revenue by being forced to cancel or curtail non-emergency services. On the other hand, some industries are thriving such as wine and liquor companies who are showing strong year-over-year growth thanks to increased sales at grocery and liquor stores.
The article notes that 2021 holds a lot of economic uncertainty. These differences in the degree certain sectors have been affected has raised concerns over a “K-shaped recovery” in which different sectors, industries, and employee groups fare differently. These disparities will “make our recovery more challenging” with some groups recovering over time, and others remaining in recession. One bright spot is the way the public, businesses, schools and others have risen to the occasion by restructuring their workplace practices and accelerating their use of technology.