AMARILLO, TX (KFDA) - According to the Texas Workforce Commission (TWF), Amarillo has the lowest unemployment rate in the state at 3.1%.
While economists in the Panhandle said this reflects the growth in the city, it also doesn't tell the full story.
Unemployment is calculated by taking the number of people looking for a job and dividing by the entire labor market. This means if a person who can't find work gives up, they have actually reduced the unemployment rate.
At the same time, college students who return to work for the summer also reduce the unemployment rate. Economist say the rate is actually slightly higher than the 3.1% cited in the TWC report.
"We're very proud of our low number," said Corey Krusa, Amarillo National Bank's Senior Vice President and Personnel Director. "You actually want to have some unemployment, because it means we're growing and hopefully attracting the best talent."
There are three types of unemployment, cyclical, structural and frictional.
Cyclical unemployment follows the fluctuations within the market.
Structural unemployment is the most harmful for an economy because it is caused by a lack of skilled laborers to fill the available positions.
Finally, frictional unemployment is the sign of a strong economy. This is because frictional unemployment is caused by the natural turnover in a market and the time people spend between jobs.
Therefore an economy that consists mostly of cyclical and frictional unemployment is likely to have strong growth in the future.
The state unemployment rate is 5% while nation wide it is slightly lower at 4.3%.
The highest unemployment in Texas is in the McAllen Edinburg Mission area with 7.5% of people unable to find a job.