Olympia has been named "recession-proof" by JobBait.com - They looked for cities across the nation that had greater than 1.2% population growth during three different time periods.

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Article excerpt about Olympia:

In Olympia, Wash., the local cash cow is state government.

At the southernmost tip of scenic Puget Sound, the population of this smallish city of 44,000 swells during the legislative session, when lawmakers, lobbyists and special interest groups swarm downtown coffee shops and eateries. Olympia is home not only to the Capitol and the bustle of politics that surrounds it, but also to two regional hospitals, Evergreen State College and a lively arts community.

In addition to numerous galleries, downtown Olympia hosts the Washington Center, home to the Olympia Symphony Orchestra, Harlequin Productions at the historic State Theater, as well as the Capital Playhouse. The 125-seat, black-box theater runs 11 musicals a year, and the three-week shows were so popular, they added another weekend to each musical starting last September.

"None of those things individually is a significant driver by themselves, but what they do do is drive the economies of other businesses," says Jeff Kingsbury, who founded the playhouse. "It's such a diverse mix of businesses and the thriving arts, it really helps stabilize the economy all the time."

Located between Seattle and Portland, and close to both the mountains and the coast, Olympia also earns points for air quality, low crime and other quality-of-life measures. But it's that constant of state government that is "the great equalizer for us," says Michael Cade, executive director of Thurston County Economic Development Council. [More]

"State capitals are good, especially if ... state government's large relative to the size of the town," says Martin, the Fed economist.

Of course, even these "well-insulated" places _ Martin's term _ would feel the effects of a recession.

Hovind says his use of the term "recession-proof" shouldn't be misconstrued as meaning a place is untouched by economic malaise.

"It's not absolute. You can't look at it in those terms. This is a continuous scale of gray," he says.