Screwing with Putin by killing the profits of the petro-state does not seriously threaten Texas, according to this Federal Reserve Report from the Dallas Branch.
The vice president of the FRB-D says that there are large “industry clusters” around the state where the economy is stable.
She says industries with high-paying jobs – like government, technology, construction, biomedical and defense – may not grow very quickly, but they don’t tend to lose jobs.
“(Researchers) look at the question of why cities tend to grow faster,” she says. “They tend to grow faster because firms tend to group into industries and specialize, so certain regions are specialized in certain industries. This increases productivity growth. It raises wages for workers and it has a lot of benefits on growth.
Orrenius says the report shows a surprising diversification in industry in places like San Antonio, one trend that mimics the nation as a whole.
“You really see some interesting insights,” she says. “We know that Houston is a huge center of the oil and gas industry in the nation, but then you see that Dallas, for example, has a very large concentration of professional and business services.”
The Report says that Austin bounced back from the Recession paced by its large and fast-growing high-tech sector. Austin currently ranks first on The Kauffman Startup Index.
The Midland-Odessa Region will contract during the Glut, but that region has faced this before, many times, so it is “mature” in its handling of the situation.
Despite Houston’s huge petrochemical industry, diversification is pronounced. The Report says that “with five metropolitan areas of 1 million or more residents, Texas has more big cities per capita than the other large U.S. states with the exception of Florida and Ohio. Dallas–Fort Worth and Houston rank among the top five largest metropolitan areas in the U.S. in terms of both population and economic output. In fact, Texas is the only state to have two metros in the top five.”