Austin Update via Gracy Title

Posted by Jesse Gomez on Tuesday, October 29th, 2013 at 11:51am.

 

 

Austin's economy ranked No. 1 in the country 

 

  • Austin is the number one economy out of 102 cities measured by The Business Journals’ On Numbers monthly report.

  • Austin has been the strongest market of all the cities, occupying first place nine times in 15 months and never finishing lower than third.

  • Austin has added 67,800 private-sector jobs during the past five years, an increase of 11.0 percent. No other market has grown faster than 8 percent.

  • Austin scored an 83.9 out of 100 based on 18 economic factors

  • With an unemployment rate of 5.2 percent and five-year wages growth from October 2008 through October 2013 of nearly 15 percent, Austin had held first place for eight of the first 10 months in 2013. The city's average weekly earnings per worker are now $919.12.

  • Austin is the only city in the nation with double-digit percentage job growth over the last five-year period, at just under 11 percent. By comparison, no other U.S. city has seen five-year job growth higher than 8 percent.

  • Dallas-Fort Worth is No. 2 in the country and Houston No. 4. 

Austin added 23,800 jobs in the 12 months ending in August, making it the twelfth best performing job market among the 50 largest U.S. metros.  

  • Austin's government sector saw modest growth over the last 12 months by gaining 800 jobs or 0.5%. Overall, private sector job growth in the Austin MSA was robust at 3.5%, adding 23,000 jobs with all but two private industry divisions contributing to the growth.

  • Texas saw net private sector job growth of 2.7% with all private industry divisions but one adding jobs over the last 12 months. As with Austin, total job growth statewide was lower, 2.4%, due to the relatively slight growth (0.6%) in the government sector, which accounts for 16.5% of total state employment.

  • In the U.S., private sector growth was 2.0% for the 12 months ending in August with all private industries adding jobs. However, overall job growth was a more modest 1.7% because the government sector lost jobs (-0.4%).

  • Total U.S. jobs remain 3.2 million or 2.3% off the peak of November 2007. Jobs in both Texas and Austin peaked a year later. Austin is now 63,400 jobs (8.1%) ahead of its pre-recession peak jobs total. Texas now has 476,100 jobs or 4.5% more than the level seen in November 2008.

  • In Austin:

    • The industry adding the most jobs and seeing the fastest growth was professional and business services, which grew by 7,400 jobs or 5.9% over the last 12 months.

    • Financial activities lost 1,700 jobs or 3.7%. On a year-over-year basis, this industry has seen negative growth five of the last eight months.

    • Manufacturing employment was also down, by 300 jobs from August 2012.

  • In Texas:

    • Construction grew fastest, at 4.9%, and added 42,600 jobs.

    • The next two fastest growing industries both grew by 4.1% Professional and business services grew by 58,600 jobs and leisure and hospitality grew 45,600 jobs over the last 12 months.

    • Information also grew relatively fast, by 3.2% and added 6,300 jobs.

    • Manufacturing's growth was weakest, only 0.1%.  

  • In the U.S.:  

    • Professional and business services grew fastest, by 3.4%, and added the most jobs (621,000).

    • Leisure and hospitality, construction and natural resources, and retail trade also grew relatively fast, gaining 3.0%, 2.8%, and 2.7% respectively in the 12 months ending in August.

  • Unemployment:

    • In July, Austin had the fourth lowest rate of unemployment among the 50 largest metros at 5.2%. Austin's rate one year ago was 5.9%.

    • The rate in July for Fort Worth was 5.9% and 6.1% in Houston.

    • The statewide rate is now 6.3%, compared to 6.9% in August of last year.

    • The August national rate at 7.3% is improved over the rate a year ago of 8.2%.

The Eleventh District economy continues to expand as reported by the Federal Reserve Bank of Dallas  

The Federal Reserve prepares a monthly report called the Beige Book. This month’s report was based on information collected on or before October 7, 2013. This document summarizes comments received from business and other contacts outside the Federal Reserve and is not a commentary on the views of Federal Reserve officials. The following summary pertains to the Eleventh District as prepared by the Federal Reserve Bank of Dallas.

 

  • The Eleventh District economy expanded at a moderate pace over the past six weeks

  • Manufacturing activity increased overall and retail sales edged up

  • Services firms reported mixed demand

  • The housing sector remained strong, with rising construction and sales

  • Office and industrial leasing activity picked up

  • Energy activity remained at high levels

  • Prices held steady or rose at most responding firms

 

Israel Gutierrez
Broker Associate, Realtor®, BPOR, GREEN
512/299-3809 Direct
israel@austinhomeshop.com

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