El Paso Economic Indicators

El Paso added jobs in December, and the unemployment rate remained the same. In addition, U.S. industrial production grew, and both auto production and sales increased.

Business-cycle index

The El Paso Business-Cycle Index edged up 0.5 points from November to December (Chart 1). The index was up 3.4 percent from December 2022.

Labor market

Job growth slows

El Paso employment grew 2.0 percent (1,654 jobs) from September to December (Chart 2). Job losses were greatest in leisure and hospitality (-243 jobs) and information (-33 jobs). The largest gains were in construction and mining (265 jobs) and government (1,009 jobs).

In 2023, total nonfarm employment expanded 1.6 percent (5,393 jobs). Education and health services added the most jobs on net (2,966 jobs), followed by trade, transportation and utilities (1,223 jobs), and government (1,107 jobs). Professional and business services contracted the most (-1,746 jobs). El Paso’s job growth in 2023 was below the state’s 3.1 percent and the nation’s 1.7 percent.

Unemployment rate holds steady

El Paso’s unemployment rate remained stable at 4.6 percent in December (Chart 3). This was higher than the rates for both the state (4.0 percent) and the nation (3.7 percent).

Trade volume

In November, El Paso’s trade volume totaled $130.8 billion annualized, down 7.1 percent from 2022 (Chart 4). Exports fell 7.9 percent from November 2022, while imports decreased 6.6 percent. Trade primarily flowed through the ports of Ysleta (61 percent), Santa Teresa (20 percent) and El Paso (19 percent). Both imports and exports have surpassed prepandemic levels.

Industrial production and maquiladora-related activities

The monthly U.S. industrial production (IP) index grew 0.1 percent in December and was up 1.0 percent from the previous year (Chart 5). The Institute for Supply Management index increased 0.7 percent in December, up to 47.4. Meanwhile, Mexico’s IP index was down 0.1 percent in November and grew 3.0 percent from November 2022.

U.S. monthly auto production increased by an annualized 318,000 units in December while sales grew by an annualized 485,000 units. Production was up 5.8 percent from December 2022, and sales were up 16.8 percent. Industrial and auto activity are closely linked to the El Paso area economy because of cross-border manufacturing relationships. Roughly half of the maquiladoras in Juárez, Mexico, are auto related.