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Cities where the recession is easing.
Friday, March 5, 2010
In these metro areas, jobs are projected to grow and the housing crisis is stabilizing.
In recent weeks business in Washington, D.C. ground to a halt as record snowfalls pummeled the area and a sparring match over national health care reform hijacked the political conversation. But the nation’s capital is getting something right: It is emerging from the recession better than any other major city in the country, according to research by Forbes.
Jobs in Washington are growing quickly, and in 2008 the city produced more in goods and services than almost anywhere in the country.
D.C. and nine other cities (among them: Boston, Los Angeles and a host of metros in Texas) are best surviving the downturn in part because they specialize in industries that are relatively insulated from economic volatility. Federal and state jobs all but guarantee the health of a local economy, and nowhere is there more government-related work than in Washington. The city has one of the lowest unemployment rates in the country, at 6.2%, and its output amounts to $362.3 billion, more than three times the average for the country’s largest cities.
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It also saw a more modest slide in home sale prices than many other metros in late 2009. Cities where the recession’s effects are lessening either never felt the full brunt of the housing crisis, or have proven resilient enough that demand is returning sooner than elsewhere in the country. These strong housing markets further enrich the local economy by feeding a host of secondary industries, like construction, lending and household services.
Uncle Sam as a Recession Shield
Government spending hasn’t hurt Austin, Texas, either. It’s the seat of state government and tied for No. 1 on our list of 10 cities best surviving the recession. Jobs have been lost nearly everywhere in the last three years, but between December 2007 and December 2009 the number of jobs in Austin rose by 0.98%; more than any of the other major cities we looked at. And by three years from now, jobs are expected to grow by 8.09%, the second-best job outlook on our list. Third on the list is Dallas, home to a thriving technology and energy sector, where jobs are projected to jump 7.19% in three years.
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