Reality check....would it be better for relocatees to wait a year while Austin's recession takes hold? (Howe: layoffs)

[inthecut]

What do you folks think?
Its a given that Austin will grow long term, but I think the local economy is far worse than they realize.......the best way I can describe it is "Hiring freeze vs. layoffs"........cities hit harder, in the rust belt and such, are laying off or going bankrupt profusely.......Austin seems to be far more in
"freeze mode", which is just as disadvantageous to job seekers as layoffs....either way, they can't get that job........
Would it be wiser for them to ride it out where they are, and wait on things picking up in 2010? Would that not give them more time to build up a nest egg, and come back when the city is far more in "hiring mode"?

[centralaustinite]

I don't think that you can make any general rule. And since we are still growing the chances of getting a "survival job" to pay the bills has to be greater here than in much of Michigan, South Carolina, etc.

No one can micro-manage a market economy like you suggest. People will come because it makes sense for their personal situation and it is hard for outside observers to know what really makes sense in any situation. For some it will be the wrong choice but not for all. We won't have really good data on the strength of the local economy today until months from now. I think that the last big bust in Austin 1985-1991 is still the benchmark, we have a bigger more diversified economy than that now.

Capital and labor flow to where opportunities are, I'm grateful that they are currently flowing our way.

[iceshots]

Originally Posted by inthecut

Would it be wiser for them to ride it out where they are, and wait on things picking up in 2010? Would that not give them more time to build up a nest egg, and come back when the city is far more in "hiring mode"?

You are assuming that they are in a position to build a nest egg where they are. And in that case, I agree. If you have a job in another location, why would you drop everything to move to Austin with no job, and think things will get better?

However, if the person is currently sitting with no job, and cost of living is eating away at their nest egg, it may be a better choice for them to take the risk in moving here if a lower cost of living will help their nest egg last longer.

The above assume they are moving from a location which does really have a higher cost of living than Austin.

By all means the "grass is always greener" mentality should be avoided at all costs.