Texas’ high tech sector buzzes along amid industry downturn
News around the high tech industry has been pretty meh lately as the industry deals with a downturn. But not all tech sectors are the same or are facing the same challenges.
In Texas, where high tech represents nearly 5% of state GDP and more than 9% of employment, the picture is a little sunnier than other parts of the country, according to a new report by the Dallas Federal Reserve.
The Texas economy is so much more than the old stereotype of oil, cotton and cattle, per Luis Torres, a senior business economist at the Dallas Fed.
“Texas high tech sector growth, employment growth has grown at a higher pace, right, than even at the California and at the U.S. level,” he said.
A lot of California high tech jobs have migrated to Texas, and the specific mix of high tech industries in the state has made it more resilient amid a downturn in the broader sector.
“Semiconductors — one important one — computer manufacturing and the consulting services also. And in those industries, you didn’t see those layoffs like you did in other tech industries,” said Torres.
High tech has especially flourished in the Austin area, where companies like Tesla and Samsung have made big investments.
“It’s just expanding the job opportunities for the people that are here,” said Jeremy Martin, president and CEO of the Austin Chamber of Commerce.
And, he added, it’s created a magnet to attract more high-skilled workers to Austin.