The Cities Where Government Employment Is On The Rise

10. Houston-Sugar Land-Baytown, TX
> Change in local gov’t employment: 2%
> Employment trough: 2009Q4
> Unemployment: 8%
> Change in total employment, trough to 2011Q1: 2.3%

Houston has made a strong comeback from the recession, though it was not hit as badly as other areas of the country. According to Bill Gilmer, a senior economist at the Federal Reserve Bank of Dallas, at a recent Association for Corporate Growth meeting, Houston is the only area in Texas to reach pre-recession economic levels. According to the Greater Houston Partnership, the sectors responsible for the greatest levels of job growth in the region are natural resources and mining, professional and business services, and educational and health services. The city’s housing market is still weak, but it is expected to improve by the year’s end.

9. Dallas-Fort Worth-Arlington, TX
> Change in local gov’t employment: 2.5%
> Employment trough: 2009Q4
> Unemployment: 7.7%
> Change in total employment, trough to 2011Q1: 2.4%

Dallas is undergoing a strong economic recovery due to its stable housing market — a result of the city’s diverse economy, robust job market, and extensive supply of land, giving it the ability to keep up with housing demand. According to a report from the US Conference of Mayors, total employment for the Dallas metropolitan area is expected to return to its peak, pre-recession level by the first quarter of 2012. The Dallas city government spent much of 2010 laying off public workers, enacting hiring freezes, and requiring city employees take an involuntary day off to save the city money. That the Dallas metro area’s local government employment has increased 2.5% as of the first quarter of 2011 is a clear sign that the area’s financial situation is improving.

8. Knoxville, TN
> Change in local gov’t employment: 2.8%
> Employment trough: 2009Q3
> Unemployment: 7.9%
> Change in total employment, trough to 2011Q1: 2.4%

Knoxville fared better than much of Tennessee through the recession, keeping its unemployment level two percentage points lower than the state’s trough of 10.8%. The recession also did little to slow down the Knoxville city government. At the end of 2010, the city had a surplus of $8.1 million, some of which was distributed as bonuses to approximately 1,000 city employees, according to the Knoxville News Sentinel. A report from the same paper states that five of the top ten largest employers in the city are government entities, including schools and hospitals. As of January 2011, these institutions employed 58% of all workers in Knoxville.

7. Austin-Round Rock-San Marcos, TX
> Change in local gov’t employment: 3.1%
> Employment trough: 2009Q3
> Unemployment: 6.5%
> Change in total employment, trough to 2011Q1: 2.4%

Austin is another big Texas city that emerged from the recession in exceptionally good economic shape. According to a report released by the Brookings Institution at the end of 2010, “Austin’s continued attraction and retention of high-skilled human capital, its diverse set of export-based industries and its avoidance of the worst U.S. housing market excesses of the 2000s help explain its stronger-than-national performance.” This strong economy is likely the reason the city government feels comfortable hiring workers, despite facing a $9.8 million budget shortfall for 2012, as is reported by the Texas Public Policy Foundation. Additionally, Austin is looking to hire 47 new police officers for 2012.

6. Chattanooga, TN-GA
> Change in local gov’t employment: 3.2%
> Employment trough: 2009Q3
> Unemployment: 8.5%
> Change in total employment, trough to 2011Q1: 2.4%

Chattanooga has been in recovery mode since early 2010, according to Moody’s. By the end of last year, the city reported that it had hired 40 additional workers, adding to the 3.2% increase over the third quarter of 2009’s employment levels. This trend may soon end, however. Hamilton County, which is included in the Chattanooga metropolitan statistical area, will soon lay off 38 government workers because of budget cuts, according to Mayor Jim Coppinger. The budget decrease is mostly due to the end of a sales tax agreement between the county and the city of Chattanooga, reports a local news station.