Austin Economic Indicators

Austin employment rose in May, while the unemployment rate remained flat, and earnings increased. Rents continued to decline.

Labor market

Unemployment flat

Austin’s unemployment rate remained at 3.5 percent in May, below the state rate of 4.1 percent and the national rate of 4.2 percent (Chart 1). In May, the local labor force decreased an annualized 0.4 percent, while the state’s increased 1.9 percent, and the nation’s fell 4.3 percent.

Employment growth picks up

Austin employment increased an annualized 2.7 percent in May, faster than the 2.4 percent growth in April. In the three months ending in May, employment increased 1.9 percent (Chart 2). The greatest gains were in leisure and hospitality (2,150 jobs) and trade, transportation and utilities (1,800 jobs). Sectors that declined include professional and business services (-770 jobs) and information (-700 jobs). Austin’s year-to-date employment in May grew 1.5 percent, slower than for Texas, which had 2.5 percent growth, but faster than the nation’s gains of 0.9 percent.

Earnings rise

Austin’s average hourly wage was $36.29 in May, up from April. The three-month moving average for wages increased an annualized 5.8 percent in May to $35.90, lower than the nation’s average of $36.12 but higher than the state’s average of $34.36 (Chart 3). Year over year, Austin’s 5.8 percent wage growth was faster than gains in Texas of 4.9 percent and the nation, at 3.9 percent.

Multifamily rent

Apartment rents in Austin fell 0.2 percent in May and were down 2.7 percent year over year. May marked the 26th consecutive month that asking-rents fell (Chart 4). Austin rent prices peaked in August 2022 and have fallen 7.7 percent since. Rents in the U.S. were up 0.2 percent in May and 3.1 percent year over year and were 9.0 percent higher than August 2022.