 "Photo: Edmarc Hedrick/The Daily Texan")
Although Austin faces a tightening job market and rising unemployment rate, the region may be poised for growth, according to the Texas Work Force Commission’s monthly report.
The comission’s report, released Friday, states that Austin’s unemployment rate rose from 5.5 to 5.9 percent in May. The Austin area, however, added 5,500 jobs in May — the fourth straight month of job growth — according to the report.
Government job creation led all sectors with an addition of 3,000 jobs during the month. The only sectors to report job losses were in the manufacturing and retail industries, but those losses are being offset by gains in government and service fields, according to data released by the Bureau of Labor Statistics earlier this month.
Texas tends to have business laws and a tax environment desirable for businesses and companies, said Weston Sythoff, Workforce Solutions-Capital Area communications coordinator.
“The reason Austin does so well in comparison with other cities around the country is: number one, it is in Texas, and number two, the existence of UT and the state and local government,” Sythoff said. “Those are usually the jobs that are more stable and aren’t necessarily affected by a recession as drastically.”
Health care and professional and business services continue to show growth, the commission reported.
According to the Austin Chamber of Commerce, Austin’s population has grown faster than any other city in the nation and has a young workforce, with nearly half the working population between 18 and 44. Austin’s median age is four years younger than the national median of 36.4.
“Austin is the second-fastest growing city in the country,” Sythoff said. “It’s a good sign for employers because they know that it is a growing area with an educated workforce.”
Beverly Kerr, vice president of research at the Austin Regional Chamber of Commerce, said that after the recession in 2001 the Austin chamber beefed up its economic development staff to absorb future economic downturns.
“This recession — being that we don’t have the housing bubble and there isn’t really a defined tech component to this recession — we haven’t lost too many jobs,” Kerr said. “We are still adding jobs, which make us the only metropolitan area out of the top 50 that are adding jobs.”
Austin’s comparatively low unemployment rates and overall brighter economic forecast than many other regions’ might help it attract corporations when the economy improves, according to economists, economic development officials and site selection analysts.
The current recession has, however, changed employers’ tactics.
Bill Kasko, president and chief executive officer of Frontline Source Group, a temporary staffing agency and direct hire firm based out of Dallas, said that in the current economic climate, employers are seeking more qualified applicants.
“So the employer understands, because of supply and demand they can ask for more right now, not only from the skillset side, but they can also ask that the salaries come down,” Kasko said. “So, the employer is really taking advantage of the situation where they can ask and search for the individual with everything and then some.”
In a burgeoning recession, with people all over the country squeezed by the contracting economy, Austin is making moves to facilitate infrastructure conducive to upward mobility.
“What we are doing right now is working real hard to make sure jobs that are going to be created are jobs that are going to support long-term economic growth,” Sythoff said. “We feel like we are doing a good job when we see job growth and an unemployment rate that stays relatively stable.”
Be the first to comment on this article!