Fiscal Notes: Weathering the Pandemic – Texas Industries and COVID-19
(Press Release) (AUSTIN) — All Texas industries have been affected by the COVID-19 pandemic, but some have struggled more than others. In the recently released December/January edition of Fiscal Notes, our office takes a closer look at some of the industries most affected by the pandemic, including hotels and motels, restaurants and bars, retailers, airlines and hospitals.
“It’s been a very difficult year for all Texans, but certain sectors of the economy have been hurt more than others,” Texas Comptroller Glenn Hegar said. “These industries, and the Texans who work in them, have been forced to make tough choices and find creative ways to weather these unprecedented times. But like countless Texans before them, their grit and determination will help them, and our state, come out of this stronger.”
Nine out of the 10 U.S. industries with the biggest job losses during the pandemic were service providers, including hotels, performing arts venues and restaurants. In Texas, employment in the arts, entertainment and recreation industries fell by nearly half from February to April 2020 and remained 27 percent lower in November, according to data from the Texas Workforce Commission. Employment at hotels, restaurants and bars fell by 12.5 percent during this period.
The most significant characteristic shared by the hardest-hit industries is their inherent need to operate in close quarters with their customers; their profitability typically depends on face-to-face encounters or crowds, from restaurants to sports arenas. Many sectors are financially fragile, with little cash on hand to weather an economic downturn. In addition, some businesses have been affected by the lack of consumer confidence and a concern for individual health and safety.
Fiscal Notes furthers the Comptroller’s constitutional responsibility to monitor the state’s economy and estimate state government revenues. It has been published since 1975, featuring in-depth analysis concerning state finances and original research by subject-matter experts in the Comptroller’s office.
For questions about how our agency functions are continuing during the outbreak, visit our COVID-19 News page or our Virtual Field Office. Fiscal Notes is available online and can be received by subscribing via the Comptroller’s website.
