Wednesday, April 22, 2015

Why 13,000 insurance industry jobs are headed to North Texas

Any way you slice it, 13,000 jobs is substantial. That’s how many combined insurance industry positions are being created in Plano and Richardson by Boston-based Liberty Mutual and Illinois-based State Farm. Both companies are in the process of moving major operations into North Texas.
In this week’s cover story, I focused on Liberty Mutual’s plan to bring 5,000 jobs to Plano, and on the company’s existing presence in the Lone Star state.
So, why are big companies like State Farm and Liberty Mutual choosing North Texas?
Because that’s where the workforce is, said Roger Meiners, chairman of the Department of Economics in the College of Business at the University of Texas at Arlington.
“For a large employer they want a big city,” Meiners said. “They could go to Amarillo — it would be cheaper — but it’s too small, and nobody wants to live there. You don’t have enough people to draw on. A company that’s going to be hiring a lot of people wants to be in a big labor pool.”
It’s a good thing, it seems, to be in a big pond.  
 Dallas Business Journal