Posted: Thu, 1 Apr 2010 09:42 PM - 6,750 Readers

By: Andrew Horansky

Despite a recent article in Time magazine touting Austin's strong economy and job potential during the economic slowdown, officials at Austin’s Chamber of Commerce say that unemployment continues to be a growing problem.

Compared to other cities around the country, Austin is doing well.  But in February 2009, 57,984 people were unemployed.  In 2010, that number rose to 65,652.

David Millner, an unemployed construction contractor, says he is finding it even harder than ever to land a job.

“Some days I do well,” he said.  “Some days are pretty brutal.”

According to the chamber, unemployment is worse now than it was during the city’s last recession in 2001.

Downtown development is also behind schedule and the housing market along Lake Travis remains sluggish.

Realtor Vlado Ruzicka says zero commercial properties are selling or even pending in ZIP code 78734 -- among Austin's most exclusive.

"Land and commercial properties, along with higher dollar homes have to start selling a little bit better," Ruzicka said.

Data from the Chamber of Commerce shows a mixed bag.

Home sales across most of Austin are up compared to last year.

Beverly Kerr, at the Chamber of Commerce, says the 2001 recession was also “a good deal worse by most other measures for Austin than this recession has been.”

Kerr expects the Austin labor market “to reach positive territory again in the next few months.”

Nationwide, the recession wiped out 8.4 million jobs.  Economist are projecting that unemployment will not return to its normal 5 percent for at least a few years.