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Officials expect job loss rise in Waco

Nov. 19, 2008

By Chad Shanks
Staff Writer

Waco officials expect the city's unemployment rate to rise when The Texas Workforce Commission releases its newest figures on Friday, but do not expect Waco's unemployment to rival the dismal national figures.

The U.S. unemployment rate rose to 6.5 percent in October, the highest level in 14 years, according to Labor Department data released November 7.

In the September Texas Workforce Commission report, Waco had a 4.8 percent unemployment rate, slightly below the Texas rate of 5.1 percent. The Texas unemployment rates for October will be released Friday and Waco is expected to follow the national upward trend.

"We don't have the exact numbers yet, but our numbers of job seekers are up slightly over the last few months. It looks like things are trending up lately," said David Davis, assistant one-stop director for the Heart of Texas Workforce Solution.

However, local experts do not believe Waco will suffer the same effects of the national economic letdown.

"Although Waco experiences some aspects of the current national situation (loss in portfolio value, tighter credit standards, etc.), it is somewhat insulated. The housing market is not as severely overbuilt or overpriced as many other areas, the network of local community banks is strong, commercial development remains relatively good and the large education component in the economy provides a buffer to more cyclical industries," said Ray Perryman of The Perryman group, a Waco based economic and financial analysis firm.

According to the Heart of Texas Workforce Solution, most of the industries in the area are doing fairly well. Overall, Waco increased its number of jobs by 300 in the September report, bringing its yearly total of new jobs to 1600.

"Traditionally, when things are slowing down nationwide, Waco will slow down at a slower rate and when things are increasing, Waco increases slower. We don't tend to rise and fall as fast as the state and nation. It's not unusual for us to lag behind," Davis said.

Several Wacoans are already feeling the effects of the aching economy, as evidenced by the increase in numbers at local charitable organizations like Caritas. Caritas employees are greeted at work each morning by a long line of people needing help paying their utility bills or feeding their family.

"We've had a very large volume of clients this week with a lot of new clients and people who haven't come to us for help in years," said Buddy Edwards, Caritas assistant executive director. "People are saying they have been losing their jobs and as a result are coming here. When compared to our history, we definitely have many more people needing help now than ever before."

Still, the Waco Chamber of Commerce notes that Waco's unemployment rate had reached 6.1 percent in 2003 and had been steadily decreasing until this year's spike. Several new businesses moved into the area this year creating jobs and Waco based companies have not been affected like national companies.

"The local economy isn't perfect right now, but it's not as bad as the national economy," said Alexis Cooper, Waco Chamber of Commerce research manager for economic development. "The October numbers could be rougher because the Waco housing market felt it more, but we'll weather the storm well if people don't get freaked out about what's happening nationally."

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