Austin Business Journal
Thursday, July 23, 2009, 2:36pm CDT

From now until the end of 2010, the Austin economy is projected to grow by $5 billion. That, coupled with relatively subdued unemployment, has the Texas Capital poised for the quickest economic rebound in the nation, according to Forbes.com.

Overall, many economists expect the national economy to return to growth later in 2009, perhaps as soon as this summer. But, as the Forbes writers point out, that won't be the case everywhere. While some cities are positioned for a quick rebound, others face a slow crawl to recovery that could take years.

Texas cities such as Austin, San Antonio, Dallas and McAllen are in a good position, Forbes' analysis found. That's due in part to the fact that Texas did not see the massive real estate bubble that formed in states like California, Nevada and Florida.

To determine the 10 cities that look best poised for recovery, Forbes examined estimates from data provider Moody's Economy.com of the projected gross domestic product of metropolitan areas across the U.S., as well as unemployment figures from the Bureau of Labor Statistics and home prices, incomes and affordability data from the National Association of Home Builders.

The analysis shows the importance of a city's economic make-up. In essence, the more diverse the industry base is in a particular city, the better off that city is when it comes to quick recovery.

The top five cities for recovery, in order, are Austin; Fayetteville, Ark.; Boulder, Colo.; Huntsville, Ala.; and San Antonio.

Austin Business Journal

Austin continues to lead the nation in job performance.

The region added about 3,400 jobs between April 2008 and April 2009, making it the only one of the nation's 38 largest cities to post a job gain, new data from the Bureau of Labor Statistics shows. This is the third consecutive month that Austin has outperformed all of the other U.S. cities with labor forces of 750,000 or more. The unemployment rate for April stood at 5.8 percent.

The 0.4 percent increase in job totals is modest, but still a better showing than cities such as Portland (down 4.7 percent) and Raleigh, N.C. (down 3.3 percent).

Jobs in goods producing industries in the Austin area dropped by 500 jobs in April, a slowdown from the rapid pace of recent losses, according to an analysis of the data from the Capital Area Council of Governments. Retail, hotel, and restaurant jobs are all up from this time last year. And professional and business service sector employment is back to its all-time high last seen in October 2008.

But another key sector for the region, technology, isn't doing quite as well. Computer, semiconductor and other electronic component manufacturing is still falling. Jobs in the semiconductor segment fell to 15,700 jobs, back to spring 2006 totals.

As Texas cities go, Austin's 5.8 percent unemployment rate was one of the healthiest. Dallas-Fort Worth stood at 6.6 percent in April and Houston at 6.3 percent. Only San Antonio's rate was lower than Austin's at 5.4 percent. Smaller metro areas including McAllen, Brownsville and Beaumount all had rates above 8 percent.

From the Austin Business Journal, May 2009:

Fastest Growing Cities in The Austin Area

And the fastest of the fast?      Hutto    684.23%