COVID-19 Recession in Texas

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Texas’ unemployment rate has fallen by nearly half since the record high in April 2020

By Anna Novak, Mitchell Ferman and Mandi Cai Updated: June 21, 2021

The coronavirus pandemic swiftly swept Texas into an economic recession, prompting millions to seek unemployment aid and complicating the state budget. Here’s a look at how the recovery is going. Full Story 

Latest coverage

• Jobless Texans say Gov. Greg Abbott’s decision to end federal unemployment benefits will worsen their already dire situations

  By Megan Menchaca Updated: May 21, 2021

  Jobless Texans say they’re desperate to return to work, but they haven’t had any luck when applying to multiple jobs every month. For some, one month isn’t enough time to apply for and find a job. Full Story 

• Jobless Texans will lose all federal unemployment benefits, including extra weekly $300, after Gov. Greg Abbott opts out of the program

  By Megan Menchaca and Mitchell Ferman Updated: May 17, 2021

  The extra $300 federal benefit will end June 26 for jobless Texans. Abbott also cut off another federal benefit that extended aid to gig workers, self-employed people and others who aren’t traditionally covered by unemployment insurance. Full Story 

• Texas business leaders say Legislature’s anti-LGBTQ bills could hurt the state’s economy

  By Megan Munce April 19, 2021

  Texas Competes, which is made up of more than 1,450 Texas employers, chambers of commerce, tourism bureaus and industry associations, is advocating the “economic case for equality.” Full Story 

• Texas Senate revives push to block cities' paid sick leave ordinances

  By Megan Munce Updated: April 14, 2021

  Supporters say Senate Bill 14 will make it easier for businesses to operate in multiple cities. Opponents call it an "existential threat to Texas workers.” Full Story 

• Texas’ rent relief program has been plagued by problems that slow payments and could prompt evictions

  By Christopher Connelly, KERA News April 7, 2021

  According to a legislative report, of the 176,000 people who have begun applications for rental assistance, just over 1,000 have had their applications approved. And only 250 of payments have been sent. Full Story 

• Texas Senate approves a $250 billion state budget — but questions remain about how federal aid will be used

  By Cassandra Pollock April 6, 2021

  The budget does not factor in over $35 billion in federal aid. Senators said they don't yet know when that money will come in and what strings could be attached. Full Story 

• Experts hopeful about state’s economic recovery, but jobless Texans still face problems filing for benefits

  By Megan Menchaca March 26, 2021

  Some businesses are already seeing customers return. But the numbers of people seeking unemployment aid surged in recent weeks to levels not seen since July. Many of them still face problems getting through to the Texas Workforce Commission. Full Story 

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• A Mexican restaurant in Houston is keeping its mask rule. People threatened to call ICE on the staff.

  By Meryl Kornfield, The Washington Post March 7, 2021

  Gov. Greg Abbott’s decision to lift the statewide mask mandate has not come easily for many businesses that are navigating enforcement of mask rules while facing backlash. “It was just horrific,” said Monica Richards, co-owner of Picos. Full Story 

• Texas businesses must decide whether to require face masks. Some worry they could lose customers either way.

  By Duncan Agnew Updated: March 7, 2021

  A day after Gov. Greg Abbott announced plans to fully reopen businesses and end the state’s mask mandate, small business owners across Texas found themselves struggling to decide what to do next. Full Story 

• “It’s putting us in the firing line”: Some small-business owners worry about Gov. Greg Abbott lifting coronavirus restrictions

  By Mitchell Ferman, Duncan Agnew and Megan Menchaca March 2, 2021

  Abbott’s order will leave it to business owners to decide whether to require customers wear masks inside their establishments. Some say they will keep coronavirus restrictions in place, but some business owners worry those decisions could anger potential customers. Full Story 

• U.S. House passes $1.9 trillion coronavirus aid package, but minimum wage hike isn’t likely to survive

  By Abby Livingston Feb. 27, 2021

  The provision to increase the minimum wage to $15 per hour isn't likely to make it through the Senate. But the package the House passed offers a blueprint for what is expected to be a staggering round of government spending. Full Story 

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• Texas workers struggle to pay for groceries and rent after losing wages during winter storm

  By Duncan Agnew Feb. 27, 2021

  Many hourly wage employees across the state lost working hours last week during the storm and power outage disaster. Now, they’re left with a choice between paying for rent or groceries. Full Story 

• Texas lawmakers have denounced Joe Biden's energy moves, but experts say they could benefit the state

  By Mitchell Ferman Feb. 8, 2021

  A global push toward a cleaner climate and safer environment — from the free market and not just the White House — has not kept Texas lawmakers from criticizing the new president. Full Story 

• Texas cities face difficulties counting their unsheltered homeless population — at a time when their numbers matter most

  By Megan Menchaca Feb. 4, 2021

  Despite changes to the regular count of people experiencing homelessness, support organizations are hoping they’ll still be able to capture a clear picture of who is unhoused in Texas as the pandemic continues. Full Story 

• Nearly a year into the pandemic, grocery workers in Texas are more fatigued than ever as they await vaccine access

  By Duncan Agnew Feb. 4, 2021

  After the Department of State Health Services neglected to include front-line essential workers in the latest phase of the vaccine rollout, grocery store workers juggle stressful work while waiting for the vaccine. Full Story 

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• "We do a lot of work": Texas' low-wage workers hope for more as Biden, Congress push minimum wage hike

  By Mitchell Ferman Jan. 29, 2021

  The minimum wage in Texas pays $7.25 an hour, well below a livable wage and far lower than the minimum hourly pay in most states. Full Story 

• As Gov. Greg Abbott vows to ban homeless camping in public, Austin officials and unsheltered residents push for better housing access

  By Juan Pablo Garnham Updated: Jan. 28, 2021

  A year and a half after Austin lifted a local ban on camping in public, some city officials are pushing to turn hotels into housing for people experiencing homelessness. Meanwhile, a state-sanctioned encampment in the city is full and can't accept new residents. Full Story 

• Gov. Greg Abbott pushes Legislature to protect businesses from coronavirus-related lawsuits

  By Mitchell Ferman Jan. 26, 2021

  U.S. Sen. John Cornyn, R-Texas, unsuccessfully pushed for similar federal legislation. Abbott's support comes as Texas intensive care units are filling up with coronavirus patients. Full Story 

• Texans receiving federal food assistance could soon get more aid under Joe Biden's executive order

  By Duncan Agnew Updated: Jan. 27, 2021

  To combat food insecurity during the pandemic, the new president is increasing assistance for families receiving help to make up for free and reduced-cost school lunches. He also wants to increase food stamp benefits. Full Story 

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• Balancing Texas' budget is always complicated. The pandemic and recession will make it even harder in 2021.

  By Catherine DeLaura Updated: Jan. 14, 2021

  Lawmakers could face a multibillion-dollar budget deficit due to the coronavirus pandemic and its accompanying recession. That will only compound the difficulties of balancing the budget. Full Story