In August, Austin saw a rise in employment alongside a slight increase in the unemployment rate, while worker earnings continued to climb. Meanwhile, multifamily rental prices extended their downward trend.
The city’s jobless rate edged up to 3.7 percent, remaining below both the Texas average of 4.1 percent and the national figure of 4.3 percent. Despite this uptick, labor market conditions remained relatively tight compared to broader trends.
Employment in Austin expanded at an annualized pace of 2.2 percent during the month, accelerating from July’s 1.9 percent growth. Over the three-month period ending in August, job gains grew at a more moderate annualized rate of 0.7 percent. The largest employment increases occurred in government, which added 4,400 positions, followed by education and health services with 1,000 new jobs, and leisure and hospitality, which gained 900 roles. On the other hand, professional and business services shed 3,600 jobs, while construction and mining lost 800 positions. Between December and August, total employment in the metro area rose by 1.4 percent—outpacing Texas’ 1.2 percent growth and significantly exceeding the national increase of 0.6 percent.
Average hourly earnings in Austin reached $36.41 in August. The three-month moving average for wages climbed at an annualized rate of 1.6 percent, settling at $36.14. While this remains slightly below the U.S. average of $36.42, it surpasses the state’s average of $34.47. On a year-over-year basis, wages in the region grew by 5.1 percent, outperforming both Texas (3.1 percent) and the national rate (3.7 percent).
In the housing sector, asking rents for multifamily units dropped 4.1 percent compared to the same period last year. In contrast, national rents increased by 2.0 percent annually, while Dallas experienced a minor decline of 0.2 percent.
— news from Federal Reserve Bank of Dallas
— News Original —
Austin Economic Indicators
Austin employment rose in August, and the unemployment rate ticked up, while wages increased. Rents continued to decline. n nLabor market n nUnemployment ticks up n nAustin’s unemployment rate rose to 3.7 percent in August, below the state rate of 4.1 percent and the national rate of 4.3 percent (Chart 1). n nJobs increase n nAustin employment increased an annualized 2.2 percent in August, faster than the 1.9 percent increase in July. In the three months ending in August, employment increased an annualized 0.7 percent (Chart 2). The greatest gains were in government (4,400 jobs), education and health services (1,000 jobs) and leisure and hospitality (900 jobs). Sectors that declined include professional and business services (-3,600 jobs) and construction and mining (-800 jobs). Austin’s employment grew 1.4 percent from December to August, quicker than Texas, which rose 1.2 percent. National employment rose 0.6 percent. n nEarnings rise n nAustin’s average hourly wage increased to $36.41 in August. The three-month moving average for wages increased an annualized 1.6 percent in August to $36.14, lower than the nation’s average of $36.42 but higher than the state’s average of $34.47 (Chart 3). Year over year, Austin’s 5.1 percent wage growth was faster than Texas’ gains of 3.1 percent and faster than the nation’s gains of 3.7 percent. n nMultifamily n nAustin’s asking rents declined 4.1 percent year over year (Chart 4). Year over year, asking rents in the nation rose 2.0 percent, while rents fell 0.2 percent in Dallas.