Whereas Austin’s economic system is wholesome, consultants say layoffs might influence enlargement in Central Texas.
AUSTIN, Texas — A lot of the gas driving Austin’s financial increase is the tech business, which is why the latest string of layoffs seen nationwide worries some.
Google is a type of native tech giants. It is also the newest tech firm to chop hundreds of jobs. And earlier this week, Microsoft introduced it too is slashing 10,000 jobs. In the meantime, Amazon, Meta and Twitter introduced hundreds of layoffs over the previous few months.
All 5 of those firms have ties to Central Texas.
“There’s often a spot between the time job cuts are introduced and after they really occur,” Ray Perryman with Perryman Group, an financial analysis firm. “However we’re simply starting to see a few of these.”
The Texas Workforce Fee mentioned regardless of layoffs within the tech business, the unemployment charge in Texas went down in December. Central Texas added 1,800 jobs during the last month.
“What’s necessary to notice is even through the course of a downturn of the economic system, we’re nonetheless working exhausting at creating jobs,” mentioned Roland Peña, Austin Chamber International Know-how and Innovation VP. “Recruiting firms, making certain that there’s programing round startups in order that they are often profitable, whether or not or not it’s capital, block capital, or whether or not or not it’s workforce, expertise.”
Whereas Austin’s economic system is wholesome, Perryman mentioned these layoffs might influence development shifting ahead.
“There will be in all probability fewer expansions for a time period right here just because the business goes by some retrenchment in transition proper now,” he added.
Whereas the Austin space will face some challenges in 2023, the town’s fame and success in attracting startups and tech firms will function a cushion.
“So, for a very long time, I feel Austin has been right here,” added Peña. “What you have seen is, we have now a lot alternative that individuals are persevering with emigrate to Austin due to that. So, expertise follows these jobs. And I imagine we’ll proceed doing the identical.”
Boomtown is KVUE’s sequence masking the explosive development in Central Texas. For extra Boomtown tales, head to KVUE.com/Boomtown.
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