Alabama cities show signs of economic recovery

February 18, 2010

Stan Diel -- The Birmingham News

A number of Alabama cities, led by Huntsville and its defense-driven economy, are expected to bounce back quickly from one of the worst recessions of the last century, an economic report released this week indicates.

Huntsville ranked second out of 386 metro areas nationwide for employment growth forecast through 2013 in the Moody's Economy report, compiled in November for Moody's clients and made public this week by Gov. Bob Riley.

The Birmingham metro area ranked 53rd in job growth forecast in the report. The Auburn metro area ranked 23rd; Montgomery, 29th; and Tuscaloosa, 61st.

"We're beginning to see evidence that Alabama's economy is improving and this report validates that," Riley said in a prepared statement. "Alabama is ripe for economic development."

Analyst Martin Soler Garcia singled out defense work as the driving force in the recovery in Huntsville and the biggest reason for its high ranking in the forecast. His report predicts a 2.5 percent increase in employment in Huntsville this year, followed by an increase of at least 4 percent in each of the next three years.

By 2013, Huntsville's unemployment rate will be below 6 percent, the report forecasts. The number of permits issued annually for new housing construction in Huntsville will more than triple over that same period as the defense industry brings new jobs to north Alabama, he found.

Neal Wade, director of the Alabama Development Office, said other economic indicators show that the economy in the state likely will begin to recover late this year.

"This is a strong indication that pockets in Alabama's economy are growing, and those areas will provide a positive impact on the economy of the entire state," Wade said.

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