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Lubbock economy continues downward spiral.

06/29/09 | by txwordpounder [mail] | Categories: News

Lubbock is tooting it's horn as having the lowest unemployment rate in the state. May unemployment statistics released by the Texas Workforce Commission show Lubbock's unadjusted unemployment rate at 4.6 percent. However, while the official number of unemployed workers in Lubbock grew by 500, the total local workforce also shrank by another 400 workers. Furthermore, official unemployment statistics do not take into account that many laid-off workers in the hard-hit construction industry either worked as contract labor or were undocumented workers getting paid under the table. They do not show up in the official unemployment statistics, but they're out there and their loss of income has a negative ripple effect across the entire local economy.

The local housing market continues in a slump and auto dealers are desperate for customers. On top of all that, Lubbock's workers average 33 percent less in weekly income compared to statewide averages. Most of Lubbock's current economy is built around low-paying jobs in the service, education and healthcare sectors. Many more workers are under-employed and struggling just to survive. The poverty rate is around 25 percent of the population. But all that just gets swept under the rug by local economic leaders.

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