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00:00:01
>> Now hiring. Help wanted. Now hiring Pharmacy Techs. The economy of Odessa, Texas is hot again. So hot, some might look at it as a case study in what happens when an economy overheats.>> I'm Anne Safir with Reuters, here in downtown Odessa in West Texas. Where an oil boom is fueling unprecedented growth.
00:00:22
There's growth in wages, employment, housing costs are up, long waits at restaurants, lots of traffic. And here at this construction site, there's 150 workers, none of them are from local because hiring locally would have been entirely impossible.>> The job crunch is producing higher wages and higher prices.
00:00:44
Workers here are paying more for rent, a one bedroom apartment in this complex now cost $3630, up more than a $1000 from a year ago, and construction sites for new housing are easy to spot just driving around. Fueling the boom, a rebound in oil prices. At around $70 a barrel, it's well below the 100 dollar plus levels it reached in 2014.
00:01:08
But new technology has pushed down the break even point to as little as $25 a barrel. Economists tell me the boom in West Texas isn't likely to spill over into the rest of the nation, nor is it likely to last. Odessa and nearby Midland have boomed before only to see their fortunes collapsed along with the price of oil.
00:01:29
But for now, policymakers in Washington DC might wanna pay attention to what happens here. It might just be a lesson in what could happened if they let the US job market as a whole now making solid gains over heat.