Omaha and the entire state of Nebraska have some of the lowest unemployment rates in the nation.  This city has been a hotbed economically for nearly a century in the agriculture and food processing sectors.  It’s also home to some very big players in the education sector as several colleges and universities call Omaha home.  Once famous for their steaks and cattle drives, Omaha has reinvented itself as a financial hub on the prairie.  The city of Omaha lost only about 600 jobs in September, and the entire state of Nebraska only lost a little over 2,000.  Those numbers are less than some cities’ entire sector losses, not to mention figures representing entire states’ economies.  The key to Omaha and Nebraska’s success is diversification.

There is no industry sector in Omaha that accounts for more than one third of its entire economy.  This has helped to keep the local economy balanced during the economically stormy years.  It also helps to insulate against a single sector’s losses, and helps to spread out any losses experienced by a few sectors alone.

Nearby Offutt Air Force Base keeps a consistent stream of capital and revenue flowing into the city, as do the nearby universities.  Berkshire Hathaway, Warren Buffett’s investment firm is based in Omaha, and Buffett is often referred to as the “Oracle of Omaha”.  There are many state and local programs for small businesses to take advantage of tax credits and tax exemptions by keeping their business located inside the state’s borders.  Omaha’s commitment to revitalizing and growing its downtown retail, tourism, and hospitality sectors has done quite a bit to keep the city far ahead of its Midwest peers.

The city has invested tens of millions of dollars in recent years to help attract outside investment and interest.  The construction of the 17,000 seat Qwest Center Omaha, which is attached to a newly-constructed flagship Hilton hotel has done wonders in improving the sports atmosphere and appeal of Omaha.

One downside to the Omaha area is the average wage of the workers is about 15% less than the national average.  The cost of living is only 8% lower than the national average, so filling the gap between wages and the cost of living is something that those living in and around Omaha are left to their own devices to accomplish.  The state’s lower than average tax rates help to offset this cost, but the city has never been known for its amazingly high average wages.

Omaha has been able to do more than just survive in these volatile economic times.  The city has actually grown and been able to strengthen its economic and employment ties with surrounding cities and states.  Omaha will likely be one of the US’s economic bright spots once the world emerges from under the shadow of the global economic slowdown.  Look to Omaha to be an economic hub and gateway to the Midwest.  The city’s economy and almost every major employment sector show no sign of slowing in the near future, and will likely grow well into 2010 with ease.