Austin's Secrets For Economic Success

May 18th, 2009

Article by Joel Kotkin
Why Texas' capital is such a great place for job growth--and the good life.


Few places have received more accolades in recent years than Austin, the city that ranked first on our list of the best big cities for jobs. Understanding what makes this attractive, fast-growing city tick can tell us much about what urban growth will look like in the coming decades.

Austin's success is not surprising since, in many ways, it starts on third base. Two of its greatest assets result from the luck of the draw; it's both a state capital and home to a major research university.


In Depth: Best Big Cities For Jobs

Being a state capital also helps. Baton Rouge, La., home to both the state government and Louisiana State University, ranked seventh on our list of the best medium-sized cities for employment. This confluence of institutions also accounts in large part for the relatively decent rankings of two Midwestern cities, Indianapolis and Columbus, Ohio, in spite of the generally sad situation in that region.

That's because colleges and state governments offer stable employment--since they cannot or will not outsource jobs to India or China. These places also tend to be inhabited by reasonably well-educated people whose stable incomes makes them less vulnerable to contractions in competitive industries like finance, manufacturing, construction or information.

"We're pretty close to recession-proof," suggest Chris Bradford, a local attorney and blogger in Austin. "It's almost anti-cyclical. In bad times, the students want to stay here."

There is a third factor, however, that adds to Austin's special sauce: the fact that it is located in Texas, the one fast-growing mega-state. With low taxes and low regulation at the state level, Austin--no doubt to many locals' consternation--is a great environment not only for public sector employment but also private sector growth.

To view this article go to :

http://www.forbes.com/2009/05/11/best-cities-jobs-employment-opinions-columnists-austin-texas.html

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