MINDING THE GAP Austin’s low unemployment rate is leading to a workers economy, according to local experts, meaning many workers are seeing more pay and bene ts. HOWHAS THE UNEMPLOYMENT RATE CHANGED? The Austin-area unemployment rate is almost back to pre-pandemic norms after jumping into the double digits during the pandemic.
workers looking for higher pay, better bene ts and workplace safety. “We are seeing workers make the choice to leave if the job isn’t right for them or to join up with their fellow workers to demand better treat- ment,” Still said. He said that means more people are interested in unions than in the past. Vance Ginn, the chief economist for Texas Public Policy Foundation, a conservative think tank based in Aus- tin, said quit-rate data—a measure of the rate at which workers leave their jobs—shows a high rate of people leaving their positions statewide. “It’s really been more at the lower end where we are seeing people switch jobsmore quickly,” Ginn said. “Workers are able to demand higher wages, and employers are willing to pay them.” Jose Vela, who won the special election for Austin’s City Council Dis- trict 4 in January, said workers’ rights is a key part of his platform. “When that’s the situation then wages have to go up to get people in the door, and that’s good,” Vela said. Greg Casar, who stepped down from the District 4 council seat to run for Congress, and Vela both said the bene ts of the strong economy are hindered by the rising cost of living.
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“You look at Austin’s [economy], it’s like, if you threw a dart at a map of the United States, it’s the bullseye; it’s as good as it gets,” said Dirk Mateer, Uni- versity of Texas economics professor. Mateer and other local experts said Austin’s quick economic recovery from the pandemic is a good thing for many workers. However, Atkinson said a “skills gap”—a mismatch between the amount of education many of the unemployed workers in the area have and what employers are seeking—is preventing some from seeing the ben- Jon Hockenyos, president of Eco- nomic Analysis & Public Policy Strat- egy, an economic consulting rm in Austin, said workers “de nitely have the upper hand.” “You might get a worker in the door at $16 an hour, but you need to be able to o er $20 to keep them,” Hock- enyos said. Ed Still, communication director for Texas American Federation of Labor and Congress of Industrial Organiza- tions, said he is seeing an increase in e ts of the economy. Workers’ economy
15% 12% 3% 9% 6% 0
11.8% April
FIRST CASE OF COVID 19 DETECTED IN AUSTIN
FIRST COVID 19 VACCINE RELEASED
Dec.
2.3% April
2.9%*
2019
2020
2021
*PRELIMINARY DATA
SOURCE: U.S. BUREAU OF LABOR STATISTICS COMMUNITY IMPACT NEWSPAPER
“We’ve seen an unprecedented spike in housing costs. For a lot of working-class folks, it doesn’t feel a lot di erent,” Casar said. Casar said many are struggling with the increasing cost and lack of access to child care, while at the same time feeling less able to rely on public schools, which have moved to virtual or given students extra days o at dif- ferent times during the pandemic. He also pointed to transportation
and health care costs. “For many of the folks I’ve talked to, that extra wage increase is getting eaten up by additional costs,” Casar said. Skills gap Mateer and other local experts said low skilled employees will need more training to keep up with Austin’s rising cost of living. “If you’re at the bottom of the econ- omy, because your skill set is such
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