How nationwide layoffs in the tech industry will impact the Austin economy
Much of the fuel driving Austin's economic boom is the tech industry, which is why the recent string of layoffs seen nationwide worries some.
Google is one of those local tech giants. It's also the latest tech company to cut thousands of jobs. And earlier this month, Microsoft announced it too is slashing 10,000 jobs. Meanwhile, Amazon, Meta, and Twitter announced thousands of layoffs over the last few months. All five of these companies have ties to Central Texas.
"There's usually a gap between the time job cuts are announced and when they actually happen," Ray Perryman with Perryman Group, an economic research company. "But we're just beginning to see some of those."
The Texas Workforce Commission said despite layoffs in the tech industry, the unemployment rate in Texas went down in December. Central Texas added 1,800 jobs over the last month.
"What's important to note is even during the course of a downturn of the economy, we're still working hard at creating jobs," said Roland Peña, Austin Chamber Global Technology and Innovation Vice President. "Recruiting companies, ensuring that there is programing around startups so that they can be successful, whether it be capital, block capital, or whether it be workforce, talent."
While the Austin area will face some challenges in 2023, the city's reputation and success in attracting startups and tech companies will serve as a cushion.
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