ONLINE EXCLUSIVE: Jobless claims fall in February

McALLEN — The number of unemployment claims across the Rio Grande Valley shrank in February as local government added more jobs.

The jobless rate in Hidalgo County dropped from 7.3 percent in January to 6.5 percent in February. Cameron County recorded 5.9 percent unemployment last month compared to 6.5 percent in January, and Starr County's unemployment rate dropped to 11.9 percent in February from 13.1 percent in January.

The numbers suggest the Valley may be avoiding the economic woes plaguing the country as a whole, said Steve Ahlenius, president and chief executive officer of the McAllen Chamber of Commerce. "All the fundamentals for our economy are very solid," he said. "The things that are happening with the national economy are only having a minor impact on the regional economy."

Texas' unemployment rate dropped to a record low 4.3 percent in February

Local business officials say most sectors of the economy have been improving, especially retail trade and commercial construction. The only weak sector here is residential construction, likely a spillover effect of the nationwide downturn in the housing market, Ahlenius said.

In all, the Valley added 5,500 nonagricultural jobs during the past year.

The employment gains across the Valley are largely attributable to the 700 government jobs that were added in February and employment increases in the service and hospitality industries.

One factor contributing to local economic growth may be more people moving into the area, said Bill Summers, president of the Weslaco-based Rio Grande Valley Partnership, a regional chamber of commerce.

More than 21,000 people moved into Hidalgo County between July 2006 and July 2007, according to the U.S. Census Bureau.

Summers also said Mexico's strong economy is helping business in the Valley.