Despite the devastating damage it did to the Texas economy, the Federal Reserve Bank of Dallas reported today that the storm will not cause significant damage to the state's economic momentum, News Radio 1200 WOAI reports.
Economist Laila Assanie described the storm's negative impact on employment and the business sector as 'transitory,' largely because of the fact that the Texas unemployment rate is currently at its lowest level in a decade.
"Employment will likely rebound back to its trend growth by October, and along the Gulf Coast by year's end," she said.
Assanie says unemployment spiked in the immediate days and weeks following Harvey, because work places were badly damaged or flooded. But she says the unemployment spike has since vanished.
She says that was surprising, considering that the unemployment spike which followed Hurricane Ike in 2008 was larger, and lasted for a longer period, but the underlying economy was not as strong back then, at a time when the nation was heading into recession.
She says the fact that the greatest damage occurred to Houston is also significant, because the nation cannot live without the Houston economy.
"Houston will rebound because of its importance as the energy capital of the U.S. and as a center for business and trade," she said. "Other parts of the Gulf Coast affected by the hurricane will recover as well."
She says the jobless numbers will be elevated for September, but that increase should not be apparent in figures released over the rest of the year.