From 1990 to 1997, the population of the area grew at an average annual rate of more than 3 percent to a total population of more than 1 million as of July 1997. Until 10 years ago, the Austin area's economy was heavily dependent on State government, universities, and agribusiness. During the 1990s the area began attracting a concentration of technology companies. As of August 1998, nonagricultural wage and salary employment in the area totaled 589,700, a 4.2-percent increase over August 1997. The area's unemployment rate in the first 8 months of 1998 averaged 2.7 percent, one of the lowest rates in the Nation for metropolitan areas.
State government remains a significant force in Austin's economy.
Although government employment now represents 22 percent of the workforce, down from 28 percent 10 years ago, it helps to soften the impact of economic downturns. In addition to the impact of employment growth, the large population of college students has increased demand for rental housing. The area rental market continues to be very strong. Apartment occupancy remains high, in spite of the large volume of construction in recent years. From 1995 through 1997, multifamily permit activity averaged 6,200 units annually.