As of the last data release from the Bureau of Labor Statistics, Austin showed the fewest
job losses of any market in the country over the past year. The market is clearly driven by
growth in the technology sector, which appears to be the most insulated from pandemic
related economic slowdown. Austin may be able to weather this recession better than
many other metros, as companies like Google, Indeed, Amazon, and Apple could
continue to perform well as demand for IT services increases. Additionally, Tesla recently
announced it was planning to open its next Gigafactory in east Austin along TX-130 to
build Tesla’s forthcoming Cybertruck, Model Y, and Semi. Reporting indicates that the
company would like to have cars rolling off assembly lines early in 2021 – certainly an
aggressive timeline, but could jumpstart Austin’s economic recovery.
The market is also generally insulated from huge shocks, as government remains a key
driver for Texas’ capital. The education and health services sector also tends to be more
resilient during bad economic times. The University of Texas at Austin (UT) is one of the
largest universities in the country and is also the metro’s largest employer (16,000
employees). Employment in this sector should continue to have some of the best growth
in Austin and will be vital to serving one of the fastest-growing metros in the nation.
Austin is likely to outperform many of its peers thanks to its high percentage of young
adults. Thanks largely to UT, roughly 25% of the metro’s population is between 20 and 34
years old. A large portion of students, attracted to the metro’s culture, warm climate, and
optimistic employment prospects, choose to stay here after graduation. It’s one of the
factors that’s made Austin the fastest growing city in the U.S. since the last U.S. Census.
The metro has grown by roughly 29% since 2010