This analysis predates the COVID-19 crisis and the economic impacts that followed. It is offered as an overview of the South Texas regional economy and a resource for comparative purposes.
The 28-county South Texas region covers about 37,800 square miles in southern Texas, stretching along the Mexican border from Del Rio to Brownsville and up the Gulf coast past Rockport to Aransas Pass and San Antonio Bay.
The South Texas region includes four metropolitan statistical areas (MSAs): the Brownsville-Harlingen MSA, comprising Cameron County; the Corpus Christi MSA, which includes Aransas, Nueces and San Patricio counties; the Laredo MSA, comprising Webb County; and the McAllen-Edinburg-Mission MSA, comprising Hidalgo County. Counties in the region not associated with an MSA include Bee, Brooks, Dimmit, Duval, Edwards, Jim Hogg, Jim Wells, Kenedy, Kinney, Kleberg, La Salle, Live Oak, Maverick, McMullen, Real, Refugio, Starr, Uvalde, Val Verde, Willacy, Zapata and Zavala counties.
The South Texas region has both coastal and border characteristics. Its two economic centers are the cities of Laredo in Webb County and Corpus Christi in Nueces County. This report examines regional economic trends including population, household income, jobs and wages and education, as well as economic conditions unique to the South Texas region.
Population
The South Texas region’s estimated total population in 2019 was more than 2.4 million, or 8.4 percent of the state’s total population. This represented an increase of 7.4 percent (about 169,000 people) since the 2010 Census. In 2019, an estimated 35.6 percent of the region’s population was concentrated in Hidalgo County (which includes the city of McAllen).
From 2010 to 2019, the region’s population growth was slower than that of the state. While each county in the region saw a change during this period (Exhibit 1), Hidalgo outpaced all others by growing by more than 12 percent, slightly lower than the state as a whole.
Exhibit 1
South Texas Region Population by County, 2010 and 2019
County
2010 Census
Estimate
(as of July 2019)
Change 2010 to 2019
Percent Change
Aransas
23,158
23,510
352
1.5%
Bee
31,861
32,565
704
2.2%
Brooks
7,223
7,093
-130
-1.8%
Cameron
406,220
423,163
16,943
4.2%
Dimmit
9,996
10,124
128
1.3%
Duval
11,782
11,157
-625
-5.3%
Edwards
2,002
1,932
-70
-3.5%
Hidalgo
774,769
868,707
93,938
12.1%
Jim Hogg
5,300
5,200
-100
-1.9%
Jim Wells
40,838
40,482
-356
-0.9%
Kenedy
416
404
-12
-2.9%
Kinney
3,598
3,667
69
1.9%
Kleberg
32,061
30,680
-1,381
-4.3%
La Salle
6,886
7,520
634
9.2%
Live Oak
11,531
12,207
676
5.9%
Maverick
54,258
58,722
4,464
8.2%
McMullen
707
743
36
5.1%
Nueces
340,223
362,294
22,071
6.5%
Real
3,309
3,452
143
4.3%
Refugio
7,383
6,948
-435
-5.9%
San Patricio
64,804
66,730
1,926
3.0%
Starr
60,968
64,633
3,665
6.0%
Uvalde
26,405
26,741
336
1.3%
Val Verde
48,879
49,025
146
0.3%
Webb
250,304
276,652
26,348
10.5%
Willacy
22,134
21,358
-776
-3.5%
Zapata
14,018
14,179
161
1.1%
Zavala
11,677
11,840
163
1.4%
Laredo MSA
250,304
276,652
26,348
10.5%
Corpus Christi MSA
404,027
429,024
23,997
5.9%
South Texas Region Total
2,272,710
2,441,728
169,018
7.4%
Texas Total
25,145,561
28,995,881
3,850,320
15.3%
Source: U.S. Census Bureau
Population Composition
According to the U.S. Census Bureau’s 2018 American Community Survey, most of the South Texas region’s counties have significantly lower median ages than the state. In 2018, 11 of the region’s 28 counties had median ages significantly lower than the state’s median age of 34.2 years; Hidalgo (28.8 years), Kleberg (28 years), Maverick (29.7 years), Starr (28.7 years), Webb (28.3 years) and Zapata (29.3 years) counties were among the state’s youngest. The region also had two counties with the state’s oldest median populations: Aransas County (50.7 years) and Real County (55.5 years). The Corpus Christi MSA had a median age on par with that of the state. The Laredo MSA had a median age significantly younger than that of the state.
Almost 84 percent of the South Texas region’s total population was Hispanic, more than double the state’s Hispanic share (Exhibit 2). The region had the state’s highest concentration of Hispanics and lowest concentration of black (non Hispanic) residents, at slightly more than 1 percent.
Household Income
In 2018, the South Texas region’s median household income was $42,246, significantly lower than that of the state. Texas’ household income is generally distributed among five income levels. Of more than 9 million Texas households, 21 percent had incomes less than $25,000 in 2018, while 17 percent had incomes greater than $125,000. In every region in the state, nearly 18 percent of households had average incomes between $50,000 and $75,000. Nearly 58 percent of the region’s households had incomes below $50,000 and 33 percent had incomes below $25,000 (Exhibit 3). About 9.3 percent of South Texas households had incomes above $125,000.
Exhibit 2
South Texas Region Population by Race and Ethnicity, 2018
Ethnicity
South Texas Region
State Total
Hispanic
83.8%
38.6%
Black (not Hispanic)
1.1%
11.6%
White (not Hispanic)
13.7%
43.4%
Other
1.4%
6.3%
Source: U.S. Census Bureau
Exhibit 3
South Texas Region and Texas Household Income Percentile, 2018
Income Level
South Texas Region
State Total
less than $25,000
33.0%
21.1%
$25,000 to $50,000
24.8%
23.0%
$50,000 to $75,000
16.5%
17.9%
$75,000 to $125,000
16.4%
20.6%
more than $125,000
9.3%
17.4%
Source: U.S. Census Bureau
Regional Industries
In 2019, the South Texas region accounted for about 6.7 percent of the state’s total employment. Exhibit 4 lists the industries with the greatest regional employment concentrations compared to the national average, as measured by location quotient (LQ). LQ represents an industry’s proportionate concentration in the region; an LQ greater than 1.0 means that industry employment is more concentrated in the region than nationally. A high LQ can identify industries that have a competitive advantage in the region, such as the ability to produce products more efficiently and of a higher quality.
Based on location quotients, the South Texas region is a leader in leather and allied product manufacturing, support activities for mining and petroleum and coal products manufacturing.
Exhibit 4
Top 10 South Texas Region Industries, 2019
Occupation
LQ
Number Employed
Average Annual Wages
Leather and Allied Product Manufacturing
7.75
1,242
$25,524
Support Activities for Mining
7.26
14,673
$89,250
Petroleum and Coal Products Manufacturing
4.40
2,891
$131,443
Fishing, Hunting and Trapping
3.19
162
$28,450
Pipeline Transportation
2.98
890
$113,080
Justice, Public Order and Safety Activities
2.65
29,654
$76,067
Support Activities for Transportation
2.64
12,581
$42,843
Ambulatory Health Care Services
2.35
106,792
$28,419
Oil and Gas Extraction
2.25
1,903
$107,376
Museums, Historical Sites, and Similar Institutions
2.02
2,919
$23,421
Total - All Industries
0.97
838,044
$39,347
Data are as of Q4 2019 except wage data, which are for covered employment in 2018.
Source: JobsEQ
U.S. Military Installation Impact
Texas has 14 U.S. military installations within its borders. In 2019, these bases directly employed more than 226,000 and supported nearly 634,000 jobs in all. In all, military installations in Texas contributed an estimated $75.3 billion annually to the state’s gross domestic product (GDP). Four military installations within the South Texas region, which includes Corpus Christi Army Depot, Naval Air Station Corpus Christi, Naval Air Station Kingsville and Laughlin Air Force Base, had a significant positive impact on the Texas economy, supporting an estimated 41,000 jobs and contributing about $4.6 billion to the state’s GDP in 2019 (Exhibit 5).
Exhibit 5
U.S. Military Impact on the South Texas Region
Estimated 2019
Region
Total Jobs Supported
Contribution to State GDP
South Texas
41,044
$4.6 billion
State of Texas
633,892
$75.3 billion
Sources: Texas Comptroller of Public Accounts, Texas Military Preparedness Commission and REMI
The region’s employment rose by more than 14 percent from 2009 to 2019, below the growth in the state. Employment in the Laredo MSA rose by nearly 20 percent in the same period, while the Corpus Christi MSA job count rose by about 6 percent (Exhibit 6). In 2019, nearly 22 percent of the region’s total jobs were in the Corpus Christi MSA.
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Exhibit 6
South Texas Region Employment Trends, 2019
Area
Number of Jobs (2019)
Actual Change (2009 to 2019)
Percent Change (2009 to 2019)
Laredo MSA
103,262
17,037
19.8%
Corpus Christi MSA
181,954
10,672
6.2%
South Texas Region
834,697
106,257
14.6%
Texas
12,531,100
2,284,407
22.3%
United States
147,886,638
17,768,373
13.7%
Note: Figures include private- and public-sector employees with the exception of active-duty military personnel, railroad employees, religious institution employees and the self-employed.
Sources: JobsEQ and U.S. Bureau of Labor Statistics
Significant Regional Occupations
The South Texas region’s most significant occupations are shown in Exhibits 7 and 8, first by location quotient and second by numeric growth during the last five years.
Exhibit 7
Top Occupations in the South Texas Region by Location Quotient, 2014 to 2019
Occupation
Number Employed
Average Annual Wages
LQ
Unemployment Rate
Five-Year Employment Change
Extraction Workers
6,524
$43,200
4.92
6.2%
-4,512
Fishing and Hunting Workers
351
15,100
2.75
10.2
0
Other Personal Care and Service Workers
59,215
20,400
2.31
7.1
19,575
Nursing, Psychiatric and Home Health Aides
29,698
21,300
2.06
5.6
-3,271
Preschool, Primary, Secondary and Special Education School Teachers
44,409
55,500
1.84
3.7
1,547
Note: Data are as of Q4 2019 except wage data, which are for covered employment in 2018.
Source: JobsEQ
Exhibit 8
Top Occupations in the South Texas Region by Numeric Growth, 2014 to 2019
Occupation
Number Employed
Average Annual Wages
LQ
Unemployment Rate
Five-Year Employment Change
Other Personal Care and Service Workers
59,215
$20,400
2.31
7.1%
19,575
Food and Beverage Serving Workers
50,703
$20,100
1.13
8.4
5,503
Health Diagnosing and Treating Practitioners
38,402
$95,500
1.15
1.5
4,420
Business Operations Specialists
19,982
$62,900
0.64
4.1
1,994
Health Technologists and Technicians
23,170
$43,700
1.25
3.0
1,933
Note: Data are as of Q4 2019 except wage data, which are for covered employment in 2018.
Source: JobsEQ
Education
A strong educational foundation provides a cornerstone for growth and competitiveness in the global economy, offering opportunities for workplace advancement and business expansion.
Wages by Educational Attainment
Post-secondary education delivers a good return on investments of time and tuition. In 2018, South Texas region workers with some college or associate degrees and with stable jobs — defined as those employed with the same firm throughout a calendar quarter — earned an average of $4,082 more annually than those with a high school degree, while those with at least a bachelor’s degree earned an average of $17,798 more (Exhibit 9).
Exhibit 9
Average Annual Earnings by Educational Attainment, South Texas Region and Texas, 2018
Educational Attainment
Number Employed, Region
Percent of Region
Average Annual Earnings, Region
Number Employed, Texas
Percent of Texas
Average Annual Earnings, Texas
Less than High School
208,634
25.6%
$36,756
2,065,483
17.1%
$42,808
High School or Equivalent, No College
190,717
23.4%
$42,462
2,765,759
22.9%
$52,035
Some College or Associate Degree
200,785
24.6%
$46,544
3,245,675
26.9%
$60,428
Bachelor’s Degree or Advanced Degree
103,605
12.7%
$60,260
2,454,975
20.3%
$95,716
Educational Attainment Unavailable
112,033
13.7%
$22,869
1,544,282
12.8%
$22,087
Total
815,773
$42,662
12,076,174
$58,787
Sources: U.S. Census Bureau and JobsEQ
Between the 2009-10 and the 2017-18 school years, the region’s high school graduation rate moved from underperforming to outperforming the state. During the 2017-18 school year, 90.9 percent of the South Texas region’s class of public high school senior students graduated, slightly higher than the state’s rate of 90 percent (Exhibit 10).
Exhibit 10
South Texas Region Public High School Graduation Rates,
2009-10 to 2017-18 School Year
Region
2010
2011
2012
2013
2014
2015
2016
2017
2018
South Texas
82.1%
83.8%
86.0%
86.8%
86.8%
87.9%
89.1%
90.2%
90.9%
Texas
84.3%
85.9%
87.7%
88.0%
88.3%
89.0%
89.1%
89.7%
90.0%
Source: Texas Education Agency
Many high school graduates enroll in postsecondary programs, which offer greater job prospects and the possibility of higher wages. Residents of the South Texas region enjoy a variety of options for higher educational achievement (Exhibit 11).
Exhibit 11 South Texas Region Institutions of Higher Education
Universities
Sul Ross State University Rio Grande College
Texas A&M International University
Texas A&M University at Galveston
Texas A&M University-Corpus Christi
Texas A&M University-Kingsville
The University of Texas Rio Grande Valley
Health Science Schools
The University of Texas Rio Grande Valley - Medical School
Junior and Community Colleges
Coastal Bend College
Del Mar College
Laredo College
South Texas College
Southwest Texas Junior College
Texas Southmost College
Texas State Technical College-Harlingen
Source: Texas Higher Education Coordinating Board
The South Texas region’s community college districts provided technical and academic coursework for more than 72,000 students in the 2017-18 school year (Exhibit 12).
Exhibit 12
South Texas Region Community College Overview, 2017-18 School Year
*The percentage of academic or technical graduates employed in the fourth quarter of the calendar year after graduation and/or enrolled in a Texas two- or four-year institution in the following fall after graduation, as specified.
Source: Texas Higher Education Coordinating Board
The region’s community colleges awarded about 5,600 certificates and associate degrees in health professions in the 2017-18 school year; the next most common awards were for general studies and liberal arts and precision production (Exhibit 13).
Exhibit 13
Top 10 Certificates and Degree Awards in the South Texas Region’s Community Colleges,
2017-18 School Year
Certificates and Degrees
Number Awarded
Health Professions and Related Clinical Sciences
5,599
Liberal Arts and Sciences, General Studies and Humanities
3,408
Precision Production
1,308
Business, Management, Marketing and Related Support Services
1,290
Personal and Culinary Services
1,041
Security and Protective Services
897
Computer and Information Sciences and Support Services
890
Mechanic and Repair Technologies/Technicians
789
Engineering Technologies/Technicians
609
Education
502
Source: JobsEQ
Regional Economy
The relative health of the South Texas region’s economy can be measured by its sales tax revenue and comparison with other states on education, population, per capita income and unemployment rate. Together, these data are good indicators of the region’s economic dynamics and competitiveness.
Sales Tax Revenue
Sales taxes are inherently volatile in the short term but when reviewed over time can provide a useful indication of the state’s economic condition.
Receipts subject to state sales tax directly attributed to the South Texas region trended upward in the past decade. Taxable sales in the region rose steadily following the 2009 recession, up to a highpoint in 2014. While taxable sales then fell off briefly, 2019 saw a new high (Exhibit 14). In 2019, taxable sales directly attributable to businesses in the South Texas region exceeded $22.7 billion, about 4.1 percent of the state’s total taxable sales. The Laredo MSA directly accounted for $2.6 billion of this total, while the Corpus Christi MSA accounted for $6.1 billion.
Exhibit 14
South Texas Region, Taxable Sales, 2007-2019
Year
Revenue South Texas Region
2007
16.9 billion dollars
2008
17.7 billion dollars
2009
15.8 billion dollars
2010
16.7 billion dollars
2011
18.7 billion dollars
2012
20.3 billion dollars
2013
21.2 billion dollars
2014
22.0 billion dollars
2015
21.3 billion dollars
2016
20.1 billion dollars
2017
20.4 billion dollars
2018
22.0 billion dollars
2019
22.7 billion dollars
Note: Numbers shown are for reported revenue subject to sales tax and directly attributed to the region.
Source: Texas Comptroller of Public Accounts
In 1997, the U.S., Canada and Mexico jointly released the North American Industry Classification System (NAICS), which classifies all business enterprises for the purpose of collecting, analyzing and publishing economic statistics. A review of two-digit NAICS codes allows for a broad analysis of industry sectors.
In 2019, the South Texas region’s retail trade and food services sector contributed most to taxable sales, accounting for more than 56.5 percent of the region’s taxable sales. Other industries of note were the accommodation and wholesale trade sectors, with a combined 23.2 percent of the region’s taxable sales.
South Texas Region vs. the U.S.
Exhibit 15 illustrates how the South Texas region compares to other states and the nation on a number of demographic and economic measures. If it were a state, the region would be the 38th largest in terms of land area (slightly larger than Indiana) and have the 36th largest population.
Exhibit 15
South Texas Region Compared to the U.S.
Measure
South Texas Region
Rank if Region
were a State
Texas
State Rank
U.S.
Square Miles
37,820
38
268,597
2
3,531,905
Population, 2019
2,441,728
36
28,995,881
2
328,239,523
Population with at Least a High School Diploma, 2018
69.4%
51
83.2%
49
87.7%
Population with Bachelor’s Degree or Higher, 2018
17.8%
51
29.3%
28
31.5%
Population Under 18 Years, 2018
29.9%
1
25.8%
2
22.4%
Population 65 Years and Above, 2018
12.7%
48
12.6%
48
16.0%
Population Percent Change, 2010 to 2019
7.4%
18
15.3%
2
6.3%
Per Capita Income, 2018
$31,965
51
$50,355
26
$54,446
Unemployment Rate, 2019
5.3%
49
3.5%
27
3.7%
Sources: U.S. Census Bureau, U.S. Bureau of Labor Statistics and U.S. Bureau of Economic Analysis.
South Texas Regional Summary
The South Texas region and its 28 counties have many unique economic conditions and challenges. Webb County, with the city of Laredo, and Nueces County, with the city of Corpus Christi, are the region’s economic centers. The region’s median age was significantly lower than that the state’s in 2018, and six of its counties were among the state’s “youngest.” If this region were a state, it would have the nation’s youngest population.
While the region has the state’s largest concentration of Hispanics, it is also the least diverse. Its household income was significantly lower than the state’s in 2018, with 58 percent of household incomes less than $50,000. Since 2010, the high school graduation rate in the region has mirrored the state’s rate.
The region has a high concentration of public health, safety and education industries as well as high LQ in certain petroleum-related industries; these industries differentiate the South Texas region from others.
