Austin Salaries
04.28.2010
Chances are you’ve heard it at least once or maybe even said it yourself: “I took a pay cut to come to Austin.” The labor market in Austin can be ruthless. The metropolitan area is adding 50,000-60,000 people per year–roughly the size of the city of San Marcos–and many of those moving here have both talent and multiple diplomas to hang on the wall. With relatively few large corporate headquarters and a business culture that celebrates bootstrapping, competition for good jobs with a career track is fierce. It’s the double-edged sword of an entrepreneurial region.
So if it seems like it’s difficult to get ahead in Austin, you’re not imagining things. Average earnings in the Austin-Round Rock metropolitan area increased from $43,982 in 2001 to $48,503 in 2008, according to data from the Bureau of Economic Analysis. That was a gain of 10.3 percent before adjusting for inflation. While it’s great that earnings are going up instead of down, 10.3 percent growth during 2001-2008 ranked 360th out of 367 metro areas in the United States – right behind the thriving economy of Detroit.
Remember to ask about these things next time you hear the talking heads going on and on about Austin’s latest spot at the top of some “best of” list. We have some work left to do.
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About Civic Analytics LLC
Brian Kelsey is an economic development consultant and lecturer at The University of Texas at Austin. He writes about the Austin economy and economic development. You can reach him at brian@civicanalytics.com or 512-731-7851.
Averages can be misleading. I’m guessing the higher salaries are increasing at a much faster pace than the below average salaries, and that the majority of people coming to the area are getting the lower salaries that tend to hold down the average. It would be interesting to break down the salary ranges to look at the effects on the overall average 10.3% gain.