Austin Economic Indicators

In May, Austin experienced broad employment growth, while wages fell slightly. Meanwhile, housing prices climbed as months of inventory declined.

Business-cycle index

The Austin Business-Cycle Index, a broad measure of economic activity, grew an annualized 4.8 percent in May, quicker than the 4.1 percent gain in April (Chart 1).

Labor market

Unemployment moves sideways

Austin’s unemployment rate stayed at 3.7 percent in May, below the state and national rate of 4.3 percent (Chart 2). The number of unemployed expanded an annualized 9.3 percent and the labor force declined by 0.4 percent from December to May.

Jobs increase

Austin employment increased an annualized 2.4 percent in May. In the three months ending in May, employment increased an annualized 2.8 percent (Chart 3). The greatest gains were in government (2,100 jobs) and construction and mining (2,200 jobs). Only one sector declined significantly – leisure and hospitality lost 200 jobs.

Austin’s employment grew 1.9 percent annualized from December to May, quicker than for Texas, which rose 1.6 percent. National employment rose 0.9 percent.

Earnings growth slows

Austin’s average hourly wage increased to $38.38 in May. The three-month moving average for wages decreased an annualized 1.6 percent in May to $37.86, higher than the nation’s average of $37.43 and the state’s average of $35.15 (Chart 4). Year over year, Austin’s 5.6 percent wage growth was quicker than both Texas’ and the nation’s gain of 2.4 percent and 3.5 percent, respectively.

Home prices increase and inventory falls

Austin’s median home price increased 1.4 percent in May (Chart 5). Year over year, median home prices fell 0.8 percent in the metro area and rose 0.1 percent in Texas. Austin home inventories ticked down to 4.9 months in May, remaining below six months, which is generally considered a balanced housing market. A year ago, home inventory levels in Austin were 5.3 months.