Short take on El Paso's economy

Short take on El Paso's economy

Diana Washington-Valdez/Commentary

The Digie Zone

[Photo: One of many stores in El Paso seeking workers/DZN]

EL PASO, TEXAS -- El Paso's economy is in one of its best times ever despite the challenges presented by the coronavirus. The unemployment rate fell to 5.3 percent in October, compared to 7.3 percent for the same month last year, according to the Bureau of Labor Statistics [1].

Companies have resumed works that had been delayed, and companies like Amazon chose this city to build their distribution centers. Universities, medical centers, medical schools and the military post carry out collaborations that are generating far-ranging economic benefits.

The average wage reached up to $15 an hour [2], while the cost of living remained lower than in other Texas cities like Austin. Wherever you go, you come across businesses with signs requesting workers.

These advantages also attracted many people from other states, primarily California, to El Paso, according to local real estate agents, contributing to a housing shortage and the increase in the purchase and rental of homes and apartments.

Residents received considerable relief funding in 2020 and 2021, from the government, to deal with the crisis caused by the coronavirus, but most of this is about to end. This means that, many people who weren't active in the labor market will need to go back to work.

As elsewhere, the city is experiencing shortages of some products and materials, which affect border businesses.

What could hurt the local economy is inflation. Inflation is skyrocketing alarmingly, something that could erase the gains. Because of this, the possibility of another recession like that of 2008 cannot be ruled out.

According to several economists, the U.S. Federal Reserve Bank holds the key; it can make things better or worse, depending on what policies on interest rates and money distribution to banks it pursues in the coming year.

This how we find ourselves at this time.

Happy New Year to all!

Diana Washington-Valdez is an international author-journalist and analyst based in El Paso, Texas. Facebook.com/thedigiezone/ TheDigieZone.Com / marcopolo360.blogspot.com (Spanish); also, on LinkedIn

[1] Economic Summary of the El Paso Area (bls.gov)

[2] El Paso, Texas Hourly rate | Payment scale

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