Why are Texas jobs so plentiful, when jobs in New York City may be hard to come by? It seems for many New Yorkers, job skills may not matter. What is the difference between New York’s job economy and Texas’s? Where blue-collar jobs are plentiful? Is it the type of job that matters? What is the secret behind the state of Texas having jobs, while those in New York City are struggling?

Offering incentives for Companies

One of the reasons why Texas could have some many jobs and be able to create such is that the state offers the largest amount of incentives for companies. For example, a plant owned by Samsung, near the Manor, Texas school district was recently awarded $231 million in incentives.

Why does it matter if companies get incentives? With a number of free tax breaks and other incentives headed their way, a company is much more likely to build and expand in a state where they can pay less in taxes. However, some have asked if lessing the tax load on business is helping the economy, and specifically, job employment. It may not be helping job seekers as much as they think in the short term.

Plentiful jobs in Texas?

There appears to be a number of plentiful jobs in Texas. Hiring for blue-collar jobs is up, according to reports. However, are jobs that plentiful in Texas? There is a lower employment rate because there are a number of blue-collar jobs available. Nevertheless, those jobs may be lower paying jobs, less than $11 an hour. Though there may be a lower unemployment rate, offering businesses so many incentives may be hurting the Lone Star state more than anyone realizes.

Why offering incentives hurts Texans

Many people may not see why offering businesses so many incentives is not necessarily a good idea. Businesses use such incentives as a basis for deciding whether to expand, where to place their headquarters and whether they will boost a state’s economy. What if offering incentives came at the cost of cutting out learning programs for children? Does the scenario seem far-fetched? At least one Texas school has reported a drop in funding for one or more of their children’s programs. Overall, educational funding for Texas schools has been cut by $5.4 billion dollars.

What if companies break their promises, to get the tax deals offered? It does not hurt the companies as much as the employees who depend on those jobs to feed the family, etc. A company may deliver as much as Texas officials want and the real people who hurt from less jobs being created are people working for companies in Texas. This is why Texas unemployment and companies offered job incentives is a mixed bag and the raw numbers telling the story of unemployment may not be that accurate. Texas may not have as many jobs as thought previously. Incentives should be offered to employees that encourage them to stay working for an employer, regardless of whether that employer receives Texas tax incentives.