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June 19, 2018 - Job Growth & Unemployment

Posted By Beverly Kerr | Jun 19, 2018
Central Texas Economy in Perspective Print Article Skyline
  • Austin added 33,900 net new jobs, growth of 3.3%, in the 12 months ending in May, making Austin the third fastest growing major metro.
  • Wholesale trade was the fastest growing industry in the Austin MSA, increasing jobs by 12.4% (6,300 jobs) over the last 12 months. Professional and business services added the most jobs—10,700 (6.1% growth).
  • Austin's seasonally adjusted unemployment rate is 2.9%, down from 3.0% in April.

The Austin metropolitan area added 33,900 net new jobs, or 3.3%, in the 12 months ending in May, according to Friday's releases of preliminary payroll jobs numbers by the Texas Workforce Commission (TWC) and the U.S. Bureau of Labor Statistics (BLS).

Austin’s 3.3% growth makes it the third best performing among the 50 largest metro areas (following Dallas and Orlando with 3.5% growth). Fort Worth, up 3.0%, also made the top ten. Houston (up 2.6%) and San Antonio (up 2.2%) ranked 14th and 18threspectively.

For the year ending in May, private sector job growth in the Austin MSA is 4.4%, or 37,100 jobs, with all private industry divisions adding jobs. Austin's sizable government sector (over 17% of jobs) saw jobs contract over the last 12 months, losing 3,200 jobs or 1.7%, thus bringing the overall job growth rate to 3.3%.

Texas saw net private sector job growth of 3.3% with all private industries, except one, adding jobs over the last 12 months. Total job growth was 2.8% as the government sector, which accounts for 16% of total state employment, was up by only 0.2%. For the nation, private sector growth is 1.9% for the 12 months ending in May with all private industries, but one, adding jobs. Overall job growth is a more modest 1.6% because government sector growth was essentially unchanged.

Jobs in May are up from the preceding month by 5,800 jobs or 0.5% in the not-seasonally-adjusted series for Austin. In the seasonally adjusted series, growth from April to May is 4,300 jobs or 0.4%. Seasonally adjusted jobs are up by 0.3% in Houston, Dallas and Fort Worth, and 0.2% in San Antonio. Statewide, seasonally adjusted jobs are up 34,700 or 0.3%. Nationally, seasonally adjusted jobs are up 0.2% from April.

In Austin, the industry adding the most jobs is professional and business services, which grew by 10,700 jobs, or 6.1%, over the last 12 months. Wholesale trade grew fastest, at 12.4%, and added 6,300 jobs. Also growing at faster-than-average rates are transportation, warehousing and utilities (7.7% or 1,500 jobs) and leisure and hospitality (7.6% or 9,600 jobs). Click here for graphs of the 2012-2018 growth rate trends for the major industry groups.

Statewide, construction and natural resources grew fastest, at 7.4%, and created 68,700 jobs. Professional and business services added the most jobs, 81,600, while growing 4.9% over the last 12 months. The other relatively fast growing industries include transportation, warehousing, and utilities (4.1%) and wholesale trade (3.7%). Jobs declined in information by 1.9%.

Nationally, construction and natural resources grew fastest, adding 4.6% over the 12 months ending in May. Transportation, warehousing, and utilities (2.7%); professional and business services (2.4%); and manufacturing (2.1%) were also relatively fast growing. Information jobs fell by 0.6%.

The net gain for private service-providing industries in Austin is 34,500 jobs, or 4.7%, over the last 12 months. Employment in goods producing industries is up by 2,600 jobs or 2.2%. Statewide, private service-providing industries are up 245,200, or 2.9%, and goods producing industries are up 96,500 jobs, or 5.4%.

We also now have May labor force, employment, and unemployment numbers for Texas and local areas in Texas. The same data for all U.S. metros will not be released until June 27. In April, Austin had the tenth lowest rate of unemployment among the 50 largest metros.

Unemployment numbers for May show Austin’s performance relative to the state and other major Texas metros being sustained. In May, Austin is at 2.8%, while the other major metros range from 3.2% in San Antonio to 4.2% in Houston. Dallas and Fort Worth are at 3.4%. Austin’s rate one year ago was 3.0%. The rates in Texas’ other major metros are also each below the rates seen a year ago. The statewide not-seasonally-adjusted rate is now 3.7%, down from 4.1% in May of last year. The national unemployment rate is 3.6%, improved from 4.1% in May 2017.

Within the Austin MSA, Travis County has the lowest unemployment rates in May, at 2.7%, while Caldwell County has the highest at 3.3%. The rate is 2.8% in Hays County, 2.9% in Williamson County, and 3.1% in Bastrop County.

On a seasonally adjusted basis, Austin’s May unemployment rate is 2.9%, down from 3.0% in April. The statewide seasonally adjusted rate is 4.1% in May, unchanged from April, while the national rate is 3.8%, improved from 3.9%.

Among Texas’ major metros, San Antonio has the next lowest seasonally adjusted rate at 3.3%, Dallas and Fort Worth are at 3.5%, and Houston is at 4.5%. May rates are below April in each of Texas’ major metros. Seasonally adjusted unemployment rates for Texas metros are produced by the Federal Reserve Bank of Dallas. (The TWC also produces seasonally adjusted rates for Texas metros, but publication lags the Dallas Fed’s data.)

With the decrease in Austin’s unemployment rate from one year ago, the number unemployed has also declined. In May 2017, Austin’s number of unemployed was 34,409. Over the last 12 months, the unemployed have decreased by 1,538, or 4.5%, to 32,871.

The Austin metro’s civilian labor force (employed plus unemployed) has increased by 3.4% or 39,476 persons from one year ago, while persons employed increased by 3.7% or 41,011. Texas has also seen greater growth in employed (2.9%) than labor force (2.5%), and the number unemployed decreased by 42,659 or 7.6%. Nationally, May civilian labor force is up by 1.1%, while employed is above the level of a year ago by 1.7%, and 816,000 fewer people (12.4%) are unemployed. Click here for graphs of the 2012-2018 growth rate trends for labor force and employment.

The TWC and the BLS will release June estimates on July 20.

The Chamber’s Economic Indicators page provides up-to-date historical spreadsheet versions of Austin, Texas and U.S. data for both the Current Employment Statistics (CES) and Local Area Unemployment Statistics (LAUS) data addressed above.

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Beverly Kerr

Vice President of Research, Beverly Kerr, joined the Chamber’s Economic Development Department in 2004, following 10 years in a similar role with the Kansas City Area Development Council. Beverly earned an M.A. in economics at the University of Missouri-Kansas City.