Economic Crisis Takes Its Toll on Oklahoma

As one of the last states to enter the recession, will Oklahoma be one of the last to recover<BR><BR><STRONG>More on News9.com:</STRONG> <A href="http://www.ok.gov/recovery/" target=_blank>Stimulus Watch: Follow the Money</A> | <A href="http://www.news9.com/global/Category.asp?c=163316">Track Job Losses in Oklahoma</A>

Monday, August 10th 2009, 7:39 pm

By: News 9


By Dave Jordan, NEWS 9

OKLAHOMA CITY -- Oklahoma has been called recession proof because of a strong energy sector. But it appears the state is starting to see the same problems affecting the rest of the country.

Oklahoma recently paid out a record amount in unemployment benefits and there are reports of an increase in home foreclosures. But one expert said the stimulus could help pull Oklahoma out of the recession around the same time the rest of the country recovers.

Sales of second-hand goods at Goodwill Industries spiked even in this energy rich state.

"Our business tends to trend this way when the economy starts to slide back a little bit we'll see an increase in sales," said Oklahoma Goodwill Vice President Chris Daniels.

Goodwill is on track to do about $7.2 million in sales and expects to do between $8 and $9 million next year. Daniels isn't entirely sold on the notion of Oklahoma as recession proof.

"I think everyone feels it. I think jobs are tougher to come by right now, and if you look at what happens nationally, I think it still effects Oklahoma and Oklahoma City," Daniels said.

Despite consumers tightening their belts and some layoffs statewide, Oklahoma didn't see the financial collapse like other states during this recession. That's because energy and agriculture prices stayed high, ultimately keeping the state afloat.

"My estimate is that we'll come out of it about the same time as the rest of the country so the duration of this recession for Oklahoma will be much shorter than most other states," said Oklahoma City University economics professor Steve Agee.

U.S. Labor Department statistics show Oklahoma entered the recession in the first quarter of 2009, two years after it began. The reason for a seemingly quick recovery lies in the stimulus, according to Agee.

"We get the same sort of economic relief that every other state in the nation gets and so the stimulus is going to impact us like it does every other state," Agee said. "It's going to be a slow recovery but I do think we've seen the bottom. I think now it's just kind of digging ourselves out."

Which means the trend of second hand shopping will likely continue.

Agee points out that the stimulus was designed to work over the course of three years and most of that money hasn't been spent yet. Most economists are forecasting a complete economic recovery around 2014.

More on News9.com: Track Job Losses in Oklahoma | Track Oklahoma Companies' Stock

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