Senator Eliot Shapleigh - El Paso, Texas

Job creation in Texas appears to be slowing this year even as the unemployment rate continues to fall, according to figures released Thursday by the Texas Workforce Commission.

Texas employers added 13,500 nonfarm jobs in February, according to preliminary data, compared with a monthly average of 17,600 new jobs in the second half of 2007. (Preliminary numbers are subject to revision.)

Moreover, while officials originally reported that the state added 28,000 jobs in January, they updated that figure Thursday by slashing it to 10,300, less than half the earlier number.

"These figures suggest slowing, which is what we expected," said Fiona Sigalla, an economist with the Federal Reserve Bank of Dallas.

Texas still has one of the strongest job markets in the nation. While Texas employers boosted payrolls last month, the U.S. economy shed 63,000 jobs, according to preliminary data.

Meanwhile, the Texas unemployment rate continued to fall in February, dropping to 4.1 percent, compared with 4.3 percent last month and 4.5 percent in February 2007. The national unemployment rate stood at 4.8 percent last month.

"Texas has once again reached a prominent benchmark – a more than 30-year record low for unemployment," said Tom Pauken, who took over this month as Texas Workforce Commission chairman.

"Our falling unemployment, coupled with this month's significant job gains, indicates the sustained health and vitality of the Texas economy," Mr. Pauken said.

However, it's unclear how long the state can keep up its growth with the rest of the U.S. economy heading for what looks like a recession.

In January and February, Texas employers added jobs at the slowest rate for a two-month period since a dip in hiring in August and September of last year.

Excluding that late summer slowdown, job creation in the first two months of 2008 occurred at the slowest rate for a two-month period since mid-2005.

In February, the Texas manufacturing industry shed 1,300 jobs, but most other industries gained.

The trade, transportation and utilities sector added 6,600 jobs in February, while the leisure and hospitality business grew by 4,900.

The construction industry gained 1,900 positions, financial activities added 1,800 and professional business services added 1,600.

The Dallas-Fort Worth area added 70,900 jobs during the 12 months ending on Feb. 29.

That compares with 87,200 jobs added during the 12 months ending in February of last year.

As for the huge revision made to the Texas job figures from January, analysts chalked it up to late reporting by some employers who participate in labor market surveys.

"Many employers don't report in their data until later on," said Veronica Downey, a labor market analyst at the Texas Workforce Commission. "Now we have an updated sample."