The report provides an overview of the state of the economy
Unemployment is low across Oklahoma, but some sectors, such as manufacturing, are still struggling to recover from the pandemic, according to the Oklahoma Economic Outlook report released Wednesday by the Federal Reserve Bank of Kansas City.
“Oklahoma’s economy continued to strengthen in the third quarter of 2021,” reads the report’s introduction, by Chad Wilkerson, vice president and Oklahoma City branch manager for the Fed of Kansas City.
“The state created 19,000 new jobs and the unemployment rate continued to decline, ending the quarter at 3.0%, on par with its pre-pandemic rate,” Wilkerson wrote. “However, total paid employment is still 52,000 below pre-pandemic levels, mainly due to unrecovered jobs in manufacturing and local government.”
Unemployment in Oklahoma fell to 3%, from a national rate of 7.8%. When broken down by county, unemployment in the Panhandle region is less than 2%, while some areas in Southeast Oklahoma have an unemployment rate of between 3 and 4%.
Energy activity increased in the third quarter, with the commissioning of seven new oil and gas platforms, bringing the number of platforms to 35 and representing a 6.8% share of US activity . The mining industry increased by 1,000 workers during the period.
More than 11 million barrels of oil were produced in Oklahoma in August 2021, or 3.4% of US activity. August 2021 production was down 2% from the previous month and down 17.1% from the previous year, when Oklahoma crude oil production peaked at around 20 million barrels. .
“The Oklahoma real estate market continued to strengthen in the second quarter, posting home price growth of 12.1% year-over-year,” Wilkerson wrote. Nationwide home prices rose 17.4%.
While building permits for multi-family dwellings slightly exceed those for single-family dwellings nationally, with increases of 26.6% and 21.2% respectively, Oklahoma is showing a shift in multi-family permits towards single-family homes. Permits for single-family homes are up 17.8% from the previous year, while permits for multi-family units are down 18.7%.
Rental vacancy rates have fluctuated widely over the past year before dropping back to 5.4% in the second quarter of 2021, compared to the national rate of 6.2%.
“Personal income growth declined in the second quarter, primarily due to a decrease in contributions from transfer payments,” such as government grants and aid, Wilkerson wrote.
The average hourly wage in Oklahoma in September 2021 was $ 25.72, compared with the national average hourly wage of $ 30.77. Oklahoma’s average hourly wage rose 0.7% from the previous month, but is 1.2% lower than the previous year.
Seasonally adjusted wage employment in Oklahoma increased 2.5% year over year, compared to a 4% increase in the United States
Oklahoma’s trend line closely matches that of the United States when it comes to recreation and hospitality employment and federal government jobs. Jobs in recreation and hospitality have grown steadily over the past decade before falling sharply when the pandemic hit, followed by a sharply rising recovery, with Oklahoma at 10.5% slightly overtaking the United States. United at 10.4%.
Federal government jobs have remained fairly stable over the past decade, except for a rapid spike in 2020, falling to 3% for Oklahoma and 2% for the United States in September 2021. L Oklahoma barely overtakes the United States in local government jobs, with the state at 13.1% and the United States at 9.5%.
When it comes to government jobs, Oklahoma has shown a steady downward trend. In 2010, the state reflected the national percentage; by September 2021, the share of government jobs in Oklahoma’s workforce had been reduced to 3.4%, compared to 4.8% in the United States.
Statistics from the United States Bureau of Labor show Oklahoma saw an 11% increase in recreation and hospitality employment for September 2021 from the previous year, but a slight increase of 0 , 2% of employment in the manufacturing sector.
Jobs in the information sector were down 2.2% from the previous year, and government jobs overall remained unchanged.