economy

The Southeast Region2020 Regional Report

This analysis predates the COVID-19 crisis and the economic impacts that followed. It is offered as an overview of the Southeast regional economy and a resource for comparative purposes.

The 15-county Southeast region covers about 12,800 square miles in easternmost Texas, stretching from the Gulf of Mexico to Nacogdoches along the Louisiana border.

The Southeast region contains one metropolitan statistical area (MSA), the Beaumont-Port Arthur MSA. It comprises Hardin, Jefferson, Newton and Orange counties. Counties in the region not associated with an MSA include Angelina, Houston, Jasper, Nacogdoches, Polk, Sabine, San Augustine, San Jacinto, Shelby, Trinity and Tyler counties. The region’s economic center is the city of Beaumont in Jefferson County.

This report examines regional economic trends including population, household income, jobs and wages and education, as well as economic conditions unique to the Southeast region.

Population

The Southeast region’s estimated total population in 2019 was about 780,000, or nearly 3 percent of the state’s total population. This represented an increase of about 1 percent (or about 10,000 people) since the 2010 Census. An estimated 32 percent of the region’s population is concentrated in Jefferson County. In 2019, the Beaumont-Port Arthur MSA accounted for 50.1 percent of the region’s population and about 1.4 percent of the state’s population.

From 2010 to 2019, the region’s population grew more slowly than the state’s (Exhibit 1). Polk County’s population rose by more than 13 percent, outpacing all other counties in the region.

Southeast Region Population by County, 2010 and 2019

County	2010 Census	Estimate (as of July 2019)	Change 2010 to 2019	Percent Change
Angelina	86,771	86,715	-56	-0.1%
Hardin	54,635	57,602	2,967	5.4%
Houston	23,732	22,968	-764	-3.2%
Jasper	35,710	35,529	-181	-0.5%
Jefferson	252,273	251,565	-708	-0.3%
Nacogdoches	64,524	65,204	680	1.1%
Newton	14,445	13,595	-850	-5.9%
Orange	81,837	83,396	1,559	1.9%
Polk	45,413	51,353	5,940	13.1%
Sabine	10,834	10,542	-292	-2.7%
San Augustine	8,865	8,237	-628	-7.1%
San Jacinto	26,384	28,859	2,475	9.4%
Shelby	25,448	25,274	-174	-0.7%
Trinity	14,585	14,651	66	0.5%
Tyler	21,766	21,672	-94	-0.4%
Beaumont-Port Arthur MSA	403,190	392,563	3,818	1.0%
Southeast Region Total	767,222	777,162	9,940	1.3%
Texas Total	25,145,561	28,995,881	3,850,320	15.3%

Source: U.S. Census Bureau

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Population Composition

According to the U.S. Census Bureau’s 2018 American Community Survey, the median ages of both the Southeast region and the Beaumont-Port Arthur MSA are significantly older than the state’s. In 2018, 14 of the region’s 15 counties had median ages significantly higher than the state’s median of 34.2 years. Sabine County had the region’s oldest average population, and one of the oldest in the state, with a median age of about 50.6 years. On the other hand, Nacogdoches County not only had the youngest population in the region, but at 30.4 years it was actually significantly younger than the state median.

About 14.4 percent of the Southeast region’s total population was Hispanic – more than 24 percentage points lower than Hispanics’ 38.6 percent share of the state population (Exhibit 2). The region also has a large black (not Hispanic) population of nearly 20 percent in 2018, versus 11.6 percent for the state.

Household Income

In 2018, the region’s median household income for the Southeast region was $47,730. Texas’ household income is generally distributed among five income levels (Exhibit 3). Of more than 9 million Texas households, 21 percent had incomes less than $25,000, while 17 percent had incomes greater than $125,000. In every region in the state, nearly 18 percent of households had an average income between $50,000 and $75,000. Household income in the Southeast region was significantly lower than the state’s; only 28.5 percent of its households had incomes above $75,000, versus 38 percent of the state’s.

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Regional Industries

In 2019, the Southeast region accounted for more than 2 percent of the state’s jobs. 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 Southeast region is a leader in the petroleum and coal products manufacturing, forestry and logging and pipeline transportation industries.

Top 10 Southeast Region Industries, 2019

Occupation	LQ	Number Employed	Average Annual Wages
Petroleum and Coal Products Manufacturing	22.16	4,657	$140,673
Forestry and Logging	8.95	964	$46,871
Pipeline Transportation	6.66	637	$113,840
Wood Product Manufacturing	5.04	3,818	$53,545
Chemical Manufacturing	4.46	7,043	$131,727
Heavy and Civil Engineering Construction	3.55	8,196	$69,549
Support Activities for Mining	2.50	1,617	$83,721
Construction of Buildings	2.46	7,581	$70,891
Justice, Public Order and Safety Activities	2.27	8,116	$56,407
Fabricated Metal Product Manufacturing	1.85	5,145	$66,508
Total - All Industries	0.97	267,858	$49,764

Data are as of Q4 2019 except wage data, which are for covered employment in 2018.
Source: JobsEQ

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Jobs and Wages

The region’s employment increased by about 1 percent from 2009 to 2019; employment in the Beaumont-Port Arthur MSA rose by a similar amount (Exhibit 5). About 60 percent of the region’s jobs are in the Beaumont-Port Arthur MSA.

Southeast Region Employment Trends, 2019

Area	Number of Jobs (2019)	Actual Change (2009 to 2019)	Percent Change (2009 to 2019)
Beaumont-Port Arthur MSA	159,579	2,294	1.5%
Southeast Region	268,964	3,222	1.2%
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

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Significant Regional Occupations

The Southeast region’s most significant occupations are shown in Exhibits 6 and 7, first by location quotient and second by numeric growth during the last five years.

Top Occupations in the Southeast Region by Location Quotient, 2014 to 2019

Occupation	Number Employed	Average Annual Wages	LQ	Unemployment Rate	Five-Year Employment Change
Forest, Conservation and Logging Workers	731	$41,200	5.87	7.5%	-5
Plant and System Operators	2,386	$69,500	4.07	1.4%	-185
Fishing and Hunting Workers	144	$15,100	3.50	11.9%	21
Extraction Workers	1,038	$45,400	2.43	7.1%	-407
Rail Transportation Workers	462	$52,500	2.33	1.2%	-53

Note: Data are as of Q4 2019 except wage data, which are for covered employment in 2018.

Source: JobsEQ

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Top Occupations in the Southeast 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	9,422	$19,900	1.14	6.1%	1,853
Food and Beverage Serving Workers	15,480	$19,900	1.07	8.2%	1,418
Construction Trades Workers	16,691	$43,700	1.57	8.3%	946
Building Cleaning and Pest Control Workers	6,542	$23,900	0.93	6.5%	708
Top Executives	4,476	$106,100	0.90	2.3%	504

Note: Data are as of Q4 2019 except wage data, which are for covered employment in 2018.
Source: JobsEQ

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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, Southeast 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 $4,100 more annually than those with a high school degree, while those with at least a bachelor’s degree earned an average of $20,207 more (Exhibit 8).

Average Annual Earnings by Educational Attainment, Southeast 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	40,454	15.3%	$36,893	2,065,483	17.1%	$42,808
High School or Equivalent, No College	69,825	26.4%	$40,911	2,765,759	22.9%	$52,035
Some College or Associate Degree	75,084	28.4%	$45,011	3,245,675	26.9%	$60,428
Bachelor’s Degree or Advanced Degree	45,682	17.3%	$59,399	2,454,975	20.3%	$95,716
Educational Attainment Unavailable	32,969	12.5%	$21,455	1,544,282	12.8%	$22,087
Total	264,013		$42,936	12,076,174		$58,787

Sources: U.S. Census Bureau and JobsEQ

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The Southeast region’s high school graduation rate has risen slightly since the 2009-10 school year, with 91.5 percent of the region’s class of public high school senior students graduating during the 2017-18 school year, slightly higher than the state’s rate of 90 percent (Exhibit 9).

Southeast Region Public High School Graduation Rates, 2009-10 to 2017-18 School Year

Region	2010	2011	2012	2013	2014	2015	2016	2017	2018
Southeast	88.5%	89.3%	91.1%	91.1%	90.0%	90.7%	90.4%	91.7%	91.5%
Texas	84.3%	85.9%	87.7%	88.0%	88.3%	89.0%	89.1%	89.7%	90.0%

Source: Texas Education Agency

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Many high school graduates enroll in postsecondary programs, which offer greater job prospects and the possibility of higher wages. Residents of the Southeast region enjoy several options for higher educational achievement (Exhibit 10).

Universities

• Lamar University
• Stephen F. Austin State University

Junior and Community Colleges

• Angelina College
• Lamar Institute of Technology
• Lamar State College - Orange
• Lamar State College - Port Arthur

Source: Texas Higher Education Coordinating Board

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The Southeast region’s single community college district, Angelina College, provided technical and academic coursework to more than 4,800 students in the 2017-18 school year (Exhibit 11).

Southeast Region Community College Overview, 2017-18 School Year

Community College District	Enrollment	Awards	Average Tuition and Fees	Academic Share of Students Enrolled	Technical Share of Students Enrolled	Enrolled or Employed, Academic*	Enrolled or Employed, Technical*
Angelina College	4,819	942	$2,730	51.5%	48.5%	85.7%	90.5%

*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

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Angelina College awarded more than 800 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 engineering (Exhibit 12).

Top 10 Certificates and Degree Awards in the Southeast Region’s Community Colleges, 2017-18 School Year

Certificates and Degrees	Number Awarded
Health Professions and Related Clinical Sciences	829
Liberal Arts and Sciences, General Studies and Humanities	428
Engineering Technologies/Technicians	349
Science Technologies/Technicians	322
Security and Protective Services	219
Personal and Culinary Services	194
Precision Production	171
Business, Management, Marketing, and Related Support Services	163
Mechanic and Repair Technologies/Technicians	140
Family and Consumer Sciences/Human Sciences	68

Source: JobsEQ

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Regional Economy

The relative health of the Southeast region’s economy can be measured by its sales tax revenue and by comparisons with other areas 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.

Sales receipts subject to state sales tax directly attributable to the Southeast region trended upward in the past decade. The region had a reasonable increase in taxable sales following the 2009 recession. Receipts leveled off after 2014 with an upward trajectory in 2018, but 2019 indicated another leveling off (Exhibit 13). For 2019, taxable sales directly attributable to businesses in the Southeast region exceeded $8 billion, contributing about 1.4 percent to the state’s overall taxable sales. The Beaumont-Port Arthur MSA directly accounted for about $5 billion of this total.

Southeast Region, Taxable Sales, 2007-2019

Year	Revenue Southeast Region
2007	6.5 billion dollars
2008	7.0 billion dollars
2009	6.5 billion dollars
2010	6.4 billion dollars
2011	6.6 billion dollars
2012	6.9 billion dollars
2013	7.1 billion dollars
2014	7.3 billion dollars
2015	7.3 billion dollars
2016	7.2 billion dollars
2017	7.4 billion dollars
2018	8.0 billion dollars
2019	8.0 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

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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 Southeast region’s retail trade and food services and accommodation sectors contributed most to taxable sales, together accounting for about 67 percent of the region’s total. Three other industries of note were the wholesale trade, construction and the manufacturing sectors, together contributing 17 percent of the region’s taxable sales.

Southeast Region vs. the U.S.

Exhibit 14 shows how the Southeast region ranks among other states and the nation on a number of demographic and economic measures. As a state, the Southeast region would be the 42nd largest in terms of land area (about the same size as Maryland) and have the 47th largest population.

Southeast Region Compared to the U.S.

Measure	Southeast Region	Rank if Region were a State	Texas	State Rank	U.S.
Square Miles	12,772	42	268,597	2	3,531,905
Population, 2019	777,162	47	28,995,881	2	328,239,523
Population with at Least a High School Diploma, 2018	83.7%	49	83.2%	49	87.7%
Population with Bachelor’s Degree or Higher, 2018	16.7%	51	29.3%	28	31.5%
Population Under 18 Years, 2018	23.5%	13	25.8%	2	22.4%
Population 65 Years and Above, 2018	17.%	19	12.6%	48	16.0%
Population Percent Change, 2010 to 2019	1.3%	40	15.3%	2	6.3%
Per Capita Income, 2018	$41,264	49	$50,355	26	$54,446
Unemployment Rate, 2019	5.0%	49	3.5%	27	3.7%

Sources: U.S. Census Bureau, U.S. Bureau of Labor Statistics and U.S. Bureau of Economic Analysis.

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Southeast Regional Summary

The Southeast region and its 15 counties have many unique economic conditions and challenges. The region has seen limited population growth since 2010, and residents of 14 of its 15 counties are significantly older than the state’s median age. Nacogdoches County, however, has a significantly younger population than the state.

The Southeast region took longer than most Texas regions to recover from the Great Recession. Economic trends have moved upward since then, with taxable sales continuing to rise in 2019. The region has had slower employment growth than the rest of the state in the last decade. The diversity of its employment pool, including chemical and petroleum products production and forestry services, add to the strength of the Southeast region’s economy.

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Questions?

If you have any questions or concerns regarding the material on this page, please contact the Comptroller’s Data Analysis and Transparency Division.