On Bauer Business Focus – a conversation on the effects of declining oil prices on the Houston economy with Houston Public Media News 88.7 Business Reporter Andrew Schneider.
Bill Gilmer, director of the Institute for Regional Forecasting for the C.T. Bauer College of Business, stopped by Bauer Business Focus to discuss the effects that the recent decline in oil prices could have on the Houston economy in the following year.
According to Gilmer, though Houston led the way out of the national 2008 recession through job growth and a below average cost of living, the city has begun a pattern of decline thanks to the fall in oil prices.
“2015 was really the year that the U.S. economy put that recession behind it, and it took off just as Houston begun to slow,” Gilmer said. “30,000 jobs lost in mining industries, oil services, and manufacturing. That’s where much of the damage has been done. Unfortunately, we are going to have another slow year in Houston.”
As Gilmer explained, this pattern is likely to spread to other areas of the economy, affecting everything from the housing market to the retail industry, and eventually leading to a decline in population growth.
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