Austin Economic Indicators

Austin employment fell in February, while the unemployment rate declined and wages rose. Housing prices declined and months of inventory increased.

Business-cycle index

The Austin Business-Cycle Index, a broad measure of economic activity, grew an annualized 1.8 percent in February, slower than the 5.1 percent gain in January (Chart 1).

Labor market

Unemployment falls

Austin’s unemployment rate fell to 3.5 percent in February, below the state rate of 4.3 percent and the national rate of 4.4 percent (Chart 2). With respect to January, the number of unemployed decreased 2.8 percent and the labor force shrunk by 0.1 percent.

Jobs decrease

Austin employment decreased an annualized 3.3 percent in February. However, in the three months ending in February, employment increased an annualized 1.6 percent (Chart 3). The greatest gains were in professional and business services (2,400 jobs), construction and mining (2,400 jobs) and leisure and hospitality (1,200 jobs). Sectors that declined include financial activities (-700 jobs) and information (-200 jobs).

Austin’s employment grew 0.6 percent annualized from December to February, slower than for Texas, which rose 0.7 percent. National employment rose 0.1 percent.

Earnings growth accelerates

Austin’s average hourly wage increased to $38.48 in February. The three-month moving average for wages increased an annualized 11.8 percent in February to $37.54, higher than the nation’s average of $37.15 and higher than the state’s average of $35.06 (Chart 4). Year over year, Austin’s 8.4 percent wage growth was quicker than Texas’ gains of 2.0 percent and the nation’s gains of 3.8 percent.

Home prices fell and inventory increased

Austin’s median home price decreased 1.3 percent in February (Chart 5). Year over year, median home prices fell 4.4 percent in the metro area and 0.7 percent in Texas. Austin home inventories ticked up to 5.5 months in February, remaining below six months, which is generally considered a balanced housing market. A year ago, home inventory levels in Austin were 5 months. The fall in home prices and the increase in the inventory of homes available for sale reflect the weakness in the Austin housing market.

Note

Data may not match previously published numbers due to revisions.