Scene: North Texas Daily (Denton, Tex.), Vol. 91, No. 8, Ed. 1 Friday, September 8, 2006 Page: 2 of 12
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Scene / NT Da ly
News
September 8/ 2006
Household incomes plummet across North exas
Denton sees an 8.3
percent drop in
median income
ByJamaal O'Neal
Staff Writer
Sprawling new subdivisions,
immaculate new shopping centers
and dozens of new industrial parks
can be seen during a journey down
Interstate Highway 35 to Dallas. From
this scenario, it appears North Texas'
economy is in good shape, but looks
can be deceiving.
Terry Clower, associate director
of NT's Center for Economic
Development and Research, said
shifts in North Texas' demographics,
migration of more low-income resi-
dents and new immigrants flocking
to the region maybe to blame for the
depleting median income across the
Metroplex.
"There are a lot of lower income
individuals moving into the area, and
what that does is pull down both the
average and the median," he said.
Clower also said new immigrants
in the region are a factor as well.
"We can talk around the issue,
but one of the factors is the influx of
folks from Mexico and Central and
South America," Clower said. "They
are providing us with a labor force we
need, but they're not bringing with
them skills that are allowing them to
work as engineers. They're working
in lower-income jobs."
He said while there are immigrants
that do have the proper credentials
to workinhigh-payingjobs inNorth
Texas, that number has dropped
dramatically since Sept. 11,2001.
According to figures released by
the American Community Survey, a
survey completed by the U.S Census
that covers areas
with at least
65,000 people, the
median house-
hold income in
the Metroplex
fell more than
10 percent from
$55,545 in 1999 to
$49,740 in 2005.
In Texas the
median house-
hold income fell
by 9.9 percent to
$42,139 in 1999
compared to
$46,770 in 2005.
Clower said
changes in income seriously and
prepare for the future.
"What students need to do is
prepare themselves to be flexible,"
Clower said. "[Students] need to
have a broad range of skills they can
employ over a career, as opposed to
learning one thing very well. You may
have to learn to be able to do several
things well."
He said economic restructuring
since the "dot-com" bust may also
be to blame for the current median
university
students should
view these
It's a hard knock life in North Texas
Region sees net losses in household median incomes
Denton County
1999
2005
City of Lewisville
1999
2005
City of Denton
1999
2005
household crunch.
"There are probably a thousand
fewer telecommunication equip-
ment manufacturing jobs in this area
now, than there were then," Clower
said. "Nineteen-ninety-nine was the
pinnacle of the 'dot-com' boom, then
after the bust you're seeing the lower
incomes come from that."
He said while the region is pres-
ently seeing substantial job growth,
it is not from industries that pay high
salaries to individuals.
The lack of
quality job devel-
opment has created
a challenge for
many cities across
the region, and
the trend troubles
$68,194
$61,520
$64,159
$50,703
$41,493
$38, 034
Courtesy of the U.S. Census Bueau
many economists
in Texas.
"What we have
seen in [North
Texas'] job growth
has mostly been
in service industry
jobs, and many
parts of the service
sector are relatively
low paying jobs,"
Clower said.
He said the
region shouldfocus
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on recruiting in the technological
industries and stabilizing the manu-
facturing industry. Doing so would
increase median household incomes
since many in those industries pay
higher salaries than the service and
hospitality industries.
He also said better educational
programs, training for entering the
workforce and enhancing skills many
low-income workers already have are
essential in bolstering the household
incomes across the region.
Linda Ratliff, Denton Economic
Development director, said sagging
median incomes in an area makes
it hard to recruit industry and retail
businesses.
She said the influx of college
students, people who move to the
area and take lower paying jobs
and commuters laid off during the
telecom bust of 1999 maybe some of
the reasons for declining household
incomes in Denton.
However, the declining income
figures have not affected Denton's
retail boom. The city's sales tax
revenue is up and retailers are lining
up to call Denton home, but high- end
retailers are not on the horizon for
Denton's shopping centers.
"We're not going to get a
Nordstrom," Ratliff said. "The very
upscale retailers didn't have Denton
on their radar at this time."
Clower said while the data looks
discouraging, he is optimistic that
North Texas' median income will
rebound. However, he stresses this
is not a situation that will change
overnight. It will require work from
local, regional and business leaders
in the area.
"I maybe an economist that prac-
tices the dismal cycle, but I'm an
optimist," Clower said. "I do believe
we have the capacity to see this turn
around."
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Scene: North Texas Daily (Denton, Tex.), Vol. 91, No. 8, Ed. 1 Friday, September 8, 2006, newspaper, September 8, 2006; Denton, Texas. (https://texashistory.unt.edu/ark:/67531/metapth145362/m1/2/: accessed April 19, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Special Collections.