Office of the Governor Rick Perry

Gov. Perry: Texas Must Work to Decrease Employer Burden, Encourage Investment and Create Jobs

Continues To Stand With Texas Employers and Their Employees
Wednesday, March 25, 2009  •  Press Release

LUBBOCK – Gov. Rick Perry today joined employers and employees at O’Hair Shutters, where he reiterated his decision not to implement an unprecedented expansion of the state’s unemployment insurance program as proposed in recent federal stimulus legislation. He also reaffirmed his call to continue fostering the state’s competitive economic climate through proven job creation programs, which are essential to helping Texas recover from the national economic downturn.

“My focus has been, and continues to be, cultivating an environment that creates more jobs for Texans,” Gov. Perry said. “Because Texans prefer a paycheck over an unemployment stipend, I will continue to call on lawmakers to cultivate an economic climate that decreases burdens on employers, encourages investment and creates more jobs for Texans.”

Strings attached to the unemployment insurance stimulus dollars would require an unprecedented change in Texas’ definition of unemployment, ultimately increasing the tax burden borne by Texas employers. This increased burden would counteract the stimulus package’s objective of job creation by leading companies to limit hiring and raise prices on products, hindering their ability to overcome the economic crisis and ultimately limiting growth.

The governor credits job creating forces in the state with helping Texas weather the national economic downturn. This session, he is also requesting that lawmakers replenish the Texas Enterprise Fund and Emerging Technology Fund and continue to support policies that will promote the state’s economic development and job creation.

At 4.7 percent, Lubbock currently has the third lowest unemployment rate in the state, three points below the national rate and two points below Texas’ rate.

Texas was recently ranked the top state for job growth and business development for the fourth year in a row in a survey of CEOs by Chief Executive Magazine. The Lone Star State is home to more Fortune 500 companies than any other state, and the U.S. Department of Commerce named Texas the top exporting state in the nation for the seventh year in a row based on 2008 export data. Additionally, Texas created nearly 94,000 jobs between December 2007 and December 2008.

For more information about unemployment insurance, please visit http://www.governor.state.tx.us.

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