Section II: Economic Polarization in Austin/Travis County
During the past two decades, the Austin metropolitan region has grown
from a small city centered on state government and education to one of
the nation’s new technology centers. Driven by computer hardware and
semiconductor manufacturing research, Austin’s large electronic and
communications industry cluster has generated rapid economic and employment
growth. However, the recent economic growth tends to overshadow the harsh
economic realities facing impoverished families.
The massive growth in the high-tech industry sector has led to a polarization
of economies. The number of lower skill jobs are declining and being replaced
by new higher skilled jobs. There are few job opportunities for poor individuals
in high-tech businesses due to education and training requirements. Most
livable wage jobs in high-tech fields require a high school diploma and
some post-secondary education and/or training. Since fewer than 40% of
TANF eligible recipients have completed high school, most are ill equipped
to meet these requirements.
Areas in Austin/Travis County have high unemployment rates, low per
capita incomes and high poverty rates. In east Austin, the unemployment
rate is more than twice the county rate. The number of low-income families
in Austin/Travis County is growing at a faster rate than the economy. These
families face the highest rental costs in Texas and the 15th highest in
the country. More than 900 of these families reside in Housing Authority
of the City of Austin public housing developments or receive Section 8
assistance.
Federal and state welfare reform laws place strict time limits on the
benefits for most eligible TANF recipients. When the time limits are reached,
the hope is that TANF recipients will either be gainfully employed or enrolled
in the appropriate training/education program to become employed. For those
who do not find employment, their future and their families’ well-being
is uncertain.
As the community attempts to move Austin/Travis County residents from
welfare-to-work, it is important to include all under-served groups in
the planning effort. The "working poor" and the homeless populations
face many hardships similar to TANF recipients. Addressing their employment
and supportive needs reflects the holistic approach of a community-wide
effort.
Opportunities for Employers and the Community
The ability to move off welfare depends largely on the strength of the
state’s economy and the number of jobs available for the welfare population.
The current economic conditions present a remarkable opportunity for local
employers to connect with the welfare-to-work population to fill job vacancies.
In the Austin metropolitan area, the bull economy has driven the unemployment
rate down to 3.3%, far lower than the state average. High job growth rates
and low unemployment have significantly reduced the pool of available and
potential workers. Since most people are employed and companies are growing,
it is difficult to fill certain positions. In short, local businesses and
industries need more employees.
Most industry sectors of the Austin/Travis County community are in need
of trained workers. Besides high-tech, other growth industries include
Business Services, Trade Contractors, Health Services, Engineering/Accounting
Services, Social Services, Wholesale Trade-Durable Goods Retail, Eating
and Drinking Places, General Building Contractors and State and Local Government.
The Welfare-to-Work Coalition is working to meet the needs of area
industries and businesses by training and supporting participants so they
can enter and remain in the workforce.
The Capital Area Workforce Development Board identified welfare recipients
as a "target group" representing a significant part of the area’s
potential workforce. The local Chambers of Commerce are active members
of the Welfare-to-Work Coalition. By identifying employer needs
and linking them to untapped human resources, the Coalition effort
should benefit the business community, the welfare-to-work population and
the community as a whole. There is no better time than the present for
a community-wide welfare-to-work effort in Austin/Travis County.
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