Texas Has Lost More Than 200,000 Jobs To China Since 2001

A report released this week by the Economic Policy Institute shows that Texas has lost more than 200,000 jobs to China since 2001 as a result of the United State’s growing trade deficit to that country.

According to the report, Texas has experienced a net job loss of 202,900 due to growing trade deficits with China since 2001–with more 34,100 of those jobs lost last year alone.

In terms of net job loss by state, Texas ranks second out of the 50 states and the District of Columbia only to California, and is actually far ahead of many “Rust Belt” states in terms of job loss directly attributable to the China trade deficit.

The report notes that 90,414 of Texas’ job loss to China was in the computer and electronic products industry.

The high job loss to China isn’t always reflected in unemployment numbers sent out by the Texas Workforce Commission, either, because, as the report notes, most of the workers who have lost jobs have been forced to take lower paying jobs in other industries. A prime example of a situation like this would be the shutdown of the Goodyear plant in Tyler in East Texas, where most of the 900 workers have been either forced to retire or find other employment.

It’s important for Texas progressives to take heed of these high numbers for several reasons.

First and foremost, a loss of 200,00 jobs in Texas–particularly nearly 100,000 jobs lost in the computer and tech industry–flies in the the face of the constant claim by Governor Rick Perry’s administration that Texas is actually fostering economic development, creating more jobs and protecting our job climate:

Governor Perry has focused his administration on creating a Texas of unlimited opportunity and prosperity through initiatives to improve education and the Texas job climate, keep taxes low and ensure state spending is disciplined.

While Perry clearly has no control over trade agreements, as Governor, he does have some control or at least influence to keep jobs in Texas. An improved Texas job climate is clearly not a reality in light of the numbers from the new report.

Perry also makes this claim about his administration:

Gov. Perry has made job creation a key focus of his administration, and employment in Texas has soared to all-time highs. Our business climate is ranked the best in America, we are the number one exporting state in the country and in 2004 Texas landed more job expansion and relocations than any other state. Our economy is growing at a tremendous pace because Gov. Perry has worked to create a climate that welcomes the entrepreneurial spirit and every employer who seeks to create new jobs for our people.

While Perry may have made job creation a cornerstone of his administration, the reality is that this claim isn’t completely true. And, even if it was, Perry clearly hasn’t made job retention a priority in his administration.

An interesting case in point, again, is the Tyler Goodyear plant. Here is what Perry’s administration says:

“The decision by Goodyear to close its Tyler facility is disappointing,” Perry said. “Local Tyler officials and my office worked hard to develop a very competitive retention incentive package valued at almost $22 million in hopes that Goodyear would retain its presence in Texas. In light of Goodyear’s decisions, I have asked the Workforce Commission to ensure that there is no delay in unemployment benefits and other assistance to the displaced workers.”

[Note: Although Perry claims the incentives were $22 million, other sources have noted the incentives were a mere $12 million.]

That pales in comparison to a $40 million package that North Carolina worked up to offer Goodyear in 2007, and $30 million put together to keep Goodyear in Gadsden, Alabama. Given that Texas is in a much better position to give incentives to manufacturers to keep their jobs in Texas (including the governor’s personal political slush fund, the Texas Enterprise Fund), one must wonder why the Perry administration allowed Texas to be bested by two other states.

The more than 200,000 jobs lost to China from Texas is, of course, due to the trade deficit. However, Texas officials could do more to make sure that less jobs leave Texas for China. And that, they aren’t doing.

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