Austin Economic Indicators

November 07, 2024

Austin experienced strong employment growth in September, accompanied by a stable unemployment rate. Wages grew, and retail sales tax collections fell.

Business-cycle index

The Austin Business-Cycle Index, a broad measure of economic activity, grew an annualized 10.3 percent in September, faster than the 8.2 percent gain in August (Chart 1). Year over year, the index was up 3.8 percent.

Labor market

Unemployment stable

Austin's unemployment rate remained 3.5 percent in September, below the state and national rates of 4.1 percent (Chart 2). In September, the local labor force grew an annualized 0.6 percent, while the state's increased 4.1 percent, and the nation's expanded 1.1 percent.

Employment picks up

Austin employment grew an annualized 6.2 percent in September, slower than the 7.2 percent growth in August. Job growth was 3.6 percent in the third quarter (Chart 3). The only sector to see a decline was information. All other sectors experienced growth, with the most expansion seen in leisure and hospitality (3,215 jobs) and construction and mining (2,657 jobs). Year to date in September, Austin employment growth was sluggish at an annualized 0.7 percent, slower than the state's 2.3 percent and nation's 1.5 percent growth.

Wages rise further

In September Austin's average hourly wage was $34.72, up slightly from August. The three-month moving average increased an annualized 2.8 percent in September to $34.77, lower than the nation's average of $35.21 but higher than the state's rate of $33.22 (Chart 4). Year over year, Austin's 2.7 percent wage growth was slower than the nation's gain of 3.9 percent and Texas' growth of 4.1 percent.

Metro retail sales tax collections

In September, the three-month moving average of Austin's real, inflation-adjusted retail sales tax collections decreased 0.9 percent, while the state's collections grew 0.5 percent (Chart 5). Year over year, the metro retail sales tax collections were up 0.7 percent, while Texas' collections rose 1.0 percent.

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