| It seems Texas has arrived to the recession | | | | January. Economists forecast construction would drop |
| fashionably late, the question now is how long will we | | | | to a pace of around 450,000 units, according to |
| stay? The current economic woes began to be felt in | | | | Thomson Reuters. Building permit applications, a key |
| some parts of the nation at the end of 2007, the | | | | measure of future activity, also rose unexpectedly." |
| official beginning of this recession. Texas began to | | | | Some analysts found this news very encouraging and |
| feel the squeeze at the end of 2008, a full year later. | | | | went so far as to hope this could signal "some kind |
| Austin in particular has only recently started to feel | | | | of normalization" in the housing market. Home building |
| the economic pain that the rest of the country has | | | | has certainly been one of the worst hit industries in |
| been experiencing for the last year. According to a | | | | this recession and Austin has felt that pain, too. But |
| recent Austin-American Statesman article, Texas | | | | the Federal Reserve's recent decision to buy up more |
| could cut as much as 296,000 jobs in 2009, | | | | mortgage backed securities could stimulate lending |
| particularly in the previously booming sectors like | | | | and get people borrowing again. The Fed's hope is |
| construction and financial services. Analysts predict | | | | this will lead to more home loans on both existing |
| the state unemployment rate could go up to 8 | | | | homes and new home starts. |
| percent. | | | | So where does all of this leave Austin? While jobs |
| Austin was looking recession-proof for most 2008 | | | | are still being created in Texas, the workforce is |
| and the situation is hardly dire at this point, with a 6.4 | | | | expanding. Austin is a great place to live and because |
| percent unemployment rate still under the national | | | | the city has weathered the recession well so far, |
| average. But local economic analyst Angelos Angelou | | | | people are continuing to move here. This is good |
| predicts things will get worse and recovery will be | | | | news and bad news. In general the continual influx of |
| slow. "When you look at the stock market, | | | | new residents is good for the housing market. But |
| unemployment rates, job growth levels, this | | | | Austin's dependence on high technology jobs is |
| economic downturn has put us back 15 or 20 years," | | | | having an effect on the city's economy. |
| he said in the Austin-American Statesman recently. | | | | It is likely that Austin's unemployment rate will |
| He doesn't believe it will take decades for Austin to | | | | continue to rise. Analysts predict companies like Dell, |
| be booming again, but it won't be soon. | | | | Inc. will continue layoffs through 2009. As companies |
| There was some pleasant news about housing starts, | | | | streamline, Austin's high tech landscape is going to |
| which rose unexpectedly in February. According to | | | | look somewhat different. But new industries are likely |
| the Associated Press, "the Commerce Department | | | | to come in and fill the void, particularly in the areas of |
| said new home construction rose to an annual rate | | | | green technology. |
| of 583,000 in February from a revised 477,000 in | | | | |