Austin’s Devastating Economic Recovery

Jun12
It’s been almost seven years since the start of the recession. Austin’s downtown skyline and social scenes tell a starkly different story than most of the country.  Our city is home to the first purpose-built Grand Prix facility in the U.S. and an ever-growing list of dining options, whether you prefer to dine with your dog at a trailer or enjoy cuisine by nationally celebrated chefs. Jobs in Austin’s tech sector rival the dot-com boom of the late 1990s, and hoteliers are lining up to build right here in Texas’ capital.

All this growth and success are possible because of the choices in how we govern, who we invest in, who we incentivize and who we solicit to bring opportunities our way.

Unfortunately, not everyone has been invited to come to the table and enjoy Austin’s growing economy. The disinvested and the uninvited turn to our hunger line for survival and the sustenance needed for a healthy life.

The Recession is so 2009, but Income is so 2006

For most of the nation, job losses during the Great Recession were concentrated in mid-wage occupations. The recovery concentrated job growth in low-wage positions. This report by the National Employment Law Project shows that Americans needed to adjust to making less, put savings on hold, and opportunities on the shelf.

Austin has not been immune to this type of recovery. Recent job growth has been concentrated in the service industry, sales and administrative occupations.

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Source: http://www.bls.gov/oes/current/oes_12420.htm


Austin’s median household income for 2012 when adjusted for inflation is $59,433. While considerably better than the US average ($54,371) and Texas ($50,740), Austin’s families are no different from the rest of Americans who are earning less than when the Great Recession ended.

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Source: http://www.deptofnumbers.com/income/texas/austin/


The combination of stagnant income, and job growth in industries where the wages don’t support the cost of living makes it harder for our neighbors to be prepared for financial emergencies and to climb out of poverty. It’s no wonder that nearly half of Texas households don’t have the liquid assets needed to cover basic expenses for three months if they experienced a sudden job loss or other financial emergency. All of this leaves more seniors, children and families at risk of hunger and diet-related illnesses – a risk that is not in line with our city’s values.

Bringing Equity to Hunger Relief

If we are a city that believes in the value of a hunger-free community then we’ll need to embrace the rich diversity of our citizens and how they are situated differently towards reaching our collective goal.

As a food bank, we’re in the business of removing obstacles needed to achieve a healthy nutritious diet. For some of our clients, it means learning how to make healthier choices while stretching their budget through our nutrition classes. For others, it’s emergency food from a pantry until they can get back on their feet. During the summer months our work is focused on helping families eat well when their cooling costs go up and when their food budget rises because children don’t have access to school meals.

What the recession has shown us is that growth is not enough when growth is not for everyone.  The silver lining is that when everyone brings different resources to the table we all can take part in making our city great.
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