Dennis Jansen Shares Data from Economic Indicators on KBTX

Aug 24, 2020
Summary: In an interview on KBTX news on Friday, August 21, 2020, PERC’s Director Dennis Jansen, discussed local and state unemployment, sales taxes, and hotel industry data from the latest issue of the report, Economic Indicators.
 
Most recently, the effects of state-mandated business closures and restrictions in June are can now be seen in an increased number of unemployment insurance claims. “The impact is there, you can see it both College Station-Bryan MSA data and you can see it the state of Texas data. And there was an increase of maybe about 20% over prior weeks in the unemployment insurance claims - and yes, this does seem to follow on with the reduced capacity of restaurants and the closure of bars and other restrictions that were in place when the coronavirus cases were spiking,” said Jansen.
 
Despite this, the unemployment rate for the College Station-Bryan MSA has consistently been ranked as one of the lowest in the state. Jansen said that this may be attributed to a more mobile workforce that is able to find work in nearby metro areas.
 
The hotel industry has been one of the hardest-hit industries by the economic shut-down. On whether the hotels will recover this fall, “I don’t see that happening,” Jansen said. “The best you could hope for is that the hotel industry suffers less than a $26 million loss in the second half of the year.”
 
“We’ve estimated that if sales and hotel receipts continue along for the rest of the [calendar] year as they have for the last couple of months, the city of College Station could see a 7% decline in revenues and Bryan, a little less, because they rely less on hotels. But this is a big impact on local government,” Jansen said.
 
Economic Indicators is a monthly report produced by PERC that analyzes the health of the local economy. Read the August issue by clicking here. 
 
See the full interview on KBTX here.