Unemployment in Austin Texas metro and the Phillips Curve

[Aaron Gordy]

The latest Texas Workforce commission stats are out. Austin Texas metro is still number 1 in the state for the lowest unemployment clocking it at 2.7%. That is a year over year decrease from 4.1%. The cumulative labor force increased from 1292.6 (thousands) to 1345.2 (thousands). The city is doing very well. The jobs are plentiful and folks keep moving here to take them. Great indicators of a healthy market.  

As a side note, its always interesting to read economic literature to put things into perspective. The following graph indicates that we have been blessed by super low inflation and low unemployment for many years. Its interesting to note that we are close to the inflationary numbers of the late 1970's while experiencing low unemployment. The Philips curve suggests that if current Fiscal and the Monetary policy doesn't jump on the inflation problem then unemployment will jump dramatically. Check out the periods of 1976-1985. 

Source : https://www.albany.edu/~bd445/...