The state of Texas has a much better unemployment rate than the nation does at this moment. Several strong city economies have helped to keep Texas below the 7% unemployment rate thus far. Austin, for example, has an unemployment rate of less than 4%, and has actually managed to create jobs despite our stumbling economy. There are areas in Texas, however, that have not been spared the drag of the current recession. The Rio Grande Valley, which borders Mexico, has a current unemployment rate of 9.5%. The Labor Workforce Commission released a report recently that stated 1 in 10 residents of this area were out of work in the month of March.

There are several reasons why this part of Texas has been hit so hard when compared with the rest of the state. First off, its proximity to Mexico means that it is more affected by the decline in value of the peso. Also, there are many migrant workers who make residence here, but travel to harvest crops. They will then return home and remain unemployed while living off of what they have earned elsewhere. It is also believed that many residents do travel out of state for other employment, such as factory work, which has been hit hard by the economy. When they are laid off, residents return home to an equally sparse job market.

The most recent report has the state of Texas’ unemployment rate at 6.7%. The national rate as of now is 9%. At the moment, it is anyone’s guess as to when the recession will begin to turn. Most experts believe that 2009 will see more of the same as we did in January and February. While Texas may hang on better as a state, there will still be areas in need of help to recover.