The Texas Economy

Recently it would appear that everyone and their dogs have been on Capitol Hill looking for a handout from Uncle Sam. With the subprime crisis, credit crunch, and financial meltdown, economies all over the world have been retracting and feeling the effects of the slowdown. Many industries have been hit very hard by the current economic conditions, but for a few, it has laid the framework for disaster. The sectors that have been hit the hardest have been: banks, housing, and more recently, the motor industry.

Here in Texas it appeared that we were going to avoid the brunt of the recession the country is going through, but it seems that things have been slowing down here as well. We have been experiencing a slowdown of job growth and the unemployment rate has slowly crept up about one percent to around four point seven percent (still under the national rate of six point five percent). San Antonio is home to a Toyota auto plant that employs around two thousand Texans. Toyota recently was forced to scale back production, during which time they had their employees help out around the local community. Hopefully we won’t see Toyota on Capitol Hill with the Big Three.

Oil has always played a role in the Texas economy, though over the years its impact to the states bottom line has decreased. Last year oil hit a record high of $147 a barrel, now it is hovering around $55. It’s not hard to see that the price has been slashed well in half and oil producers here in the state are feeling the effects. Texas is also home to many smaller oil and oil service companies which may not fare as well as some of the corporate giants. Texas’ reliance on oil has slowly been dwindling over the years and now it would appear that is a good thing as petroleum has seen one of the hardest declines recently.

Texas has also seen an increase in forclosures and short sales here in the state. Specifically in central Texas there has been an increase of twenty five percent in foreclosures from this time last. As reported by KXAN, many economists say that the reason for the increase in foreclosures is due to the increase in unemployment. Austin still remains one of the most desirable and affordable places to live in the country. Although there has been fewer homes built this year, there is by no means a shortage. Finding the financing is another story.

If you have watched the news at any point during this last year you would have been lead to believe that it is the end of the financial world as we know it. Texas has been lucky that our economy has comparatively held up strong. It has been a crazy year and that is for sure, but the world will continue to turn and things will improve.