Austin Business Climate

The economy of Austin, Texas is fueled by employment in government, technology, education and professionals and leisure and hospitality. Each year a steady flow of graduates from the University of Texas computer sciences and engineering disciplines fill the ranks of the high technology companies that call Austin home. The largest employer segment in Austin, however, is the state, city and county governments, followed by professional and business services, manufacturing--much of it high tech--then retailing, education and health services and the leisure and hospitality industry. The largest single employer in Austin is the State of Texas, led by the University of Texas with more than 14,000 employees. The largest private employer is Dell Computer with 17,000 workers. Other companies with major presence in the city include IBM, AT&T, Applied Materials, Advanced Micro Devices, National Instruments, 3M Corp. and Apple Computer.

The Austin Metro area has a labor force of 805,825, with unemployment of 34,821 or 4.3%. With its lower housing costs and higher family incomes, Austin has seen rapid development of its high technology industries. With Dell the largest private employer, the computer segment remains highly regarded. In addition to high technology, Austin has developed a strong infrastructure of locally-owned businesses that challenge the sometimes overwhelming efforts of national and international retailing firms. The Austin Independent Business Alliance promotes the "Keep Austin Weird" campaign as a way of protecting these local businesses, but also as a statement about the city's maverick spirit and love of eccentricity. So while cowboy boots and western shirts and long-haired ponytails might draw stares in many other American cities, in Austin it's just part of the independent nature of the business community. Don't sell them short, though, these people know how "to do bidness."

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