The Dallas-Fort Worth metropolitan area experienced economic expansion in August, marked by solid employment growth despite a notable rise in unemployment. The region’s payroll jobs increased at an annualized rate of 2.5 percent, following stagnant figures in July. In comparison, Texas as a whole saw a 3.2 percent job growth during the same month. Sectoral analysis from May through August revealed gains primarily in education and health services, information, and government, while construction, financial activities, and professional and business services reported job losses.
Despite the positive hiring trend, the metro area’s unemployment rate climbed to 4.1 percent in August, up from 3.7 percent the previous month—marking two consecutive months of increases. Dallas recorded a 4.1 percent jobless rate, Fort Worth 4.0 percent, both aligning with the statewide figure and remaining below the national average of 4.3 percent.
Average hourly earnings in DFW held steady at $36.39, slightly under the national average of $36.53 but above Texas’ $34.33. The three-month moving average remained unchanged at $36.52. Year-over-year, wages in the region grew by 4.2 percent, outpacing both state (3.1 percent) and national (3.7 percent) growth.
Consumer activity, as reflected in sales tax collections, remained stable in July. The region collected $261 million, with Dallas seeing a 0.3 percent increase and Fort Worth a 0.7 percent decline. Statewide sales tax revenue rose 0.5 percent in August. Compared to the prior year, DFW collections increased by 2.1 percent, while Texas saw a 5.0 percent rise.
In housing, existing-home sales in the metro area dropped by 3.3 percent in August after a 2.8 percent gain in July. Statewide, sales rose marginally by 0.1 percent, while national figures dipped 0.2 percent. Inventory levels in DFW fell to 4.2 months, compared to 5.2 months across Texas.
Apartment rental prices in Dallas were flat month-over-month in August, averaging $1,540—below the U.S. average of $1,840. Year-over-year, Dallas rents declined slightly by 0.2 percent, while national rents rose 2.0 percent.
— news from Federal Reserve Bank of Dallas
— News Original —
Dallas−Fort Worth Economic Indicators
The Dallas–Fort Worth economy expanded in August. Employment growth was strong, while unemployment increased sharply. Hourly earnings were flat but remained higher than figures for the state and nation and above year-ago levels. DFW sales tax collections held steady. Home sales fell, while apartment rents were flat. n nLabor market n nEmployment increases n nEmployment in Dallas−Fort Worth grew an annualized 2.5 percent in August after holding steady in July (Chart 1). Employment in Texas grew 3.2 percent in August. Dallas−Fort Worth job growth from May to August was mixed across major sectors, with the strongest gains in the educational and health services, information, and government sectors. Meanwhile, employment losses were largest in construction, financial activities, and professional and business services over the same period. n nUnemployment rises n nDespite growth in payroll employment, the Dallas-Fort Worth unemployment rate rose to 4.1 percent in August from 3.7 percent in July (Chart 2). This marked the second consecutive month of increases in the unemployment rate. The jobless rate was 4.1 percent in Dallas and 4.0 percent in Fort Worth, in line with Texas’ jobless rate of 4.1 percent but below the national rate of 4.3 percent. n nEarnings flat in August n nThe average nominal hourly wage in Dallas−Fort Worth was $36.39 in August, above the state average ($34.33) but below the national average ($36.53). The three-month moving average of hourly earnings for Dallas−Fort Worth was unchanged at $36.52 (Chart 3). Year over year, hourly earnings were up 4.2 percent in the metro area, outpacing the state (3.1 percent) and national (3.7 percent) increases. n nConsumer spending n nSales tax receipts, a proxy for consumption, held steady in Dallas–Fort Worth in July. The region’s sales tax collections were little changed in July at $261 million (Chart 4). Sales tax collections were up 0.3 percent in Dallas but declined 0.7 percent in Fort Worth. State sales tax collections rose 0.5 percent in August. Year over year, sales tax collections rose 2.1 percent in Dallas–Fort Worth and 5.0 percent in Texas. n nResidential real estate n nHome sales decline n nHousing demand slowed in August. Dallas–Fort Worth existing-home sales fell 3.3 percent after rising 2.8 percent in July (Chart 5). Statewide, sales edged up 0.1 percent in August, while they ticked down 0.2 percent nationally. Home inventories in Dallas–Fort Worth declined to 4.2 months, while Texas inventories ticked down to 5.2 months. n nApartment rents flat n nYear over year, apartment rents ticked down 0.2 percent in Dallas in August and rose 2.0 percent nationwide (Chart 6). Dallas apartment rental rates averaged $1,540 in August, below the U.S. average of $1,840. Rents were unchanged from July to August in Dallas but edged up 0.2 percent nationally.