- Austin added 57,300 jobs, growth of 4.7%, in the 12 months ending in November, making it the 17th best performing among the top 50 metros.
- Austin made up all of 2020’s pandemic-related job losses by May 2021 and the metro ranks 2nd for job growth since February 2020.
- Austin’s leisure and hospitality industry reached a new peak employment level in November of 153,200 or 12.0% of all jobs—nearly matching the industry’s 12.1% pre-pandemic share.
- Austin's seasonally adjusted unemployment rate is 2.8% in November, improved from 2.9% in October.
Nonfarm payroll jobs
Austin’s nonfarm payroll jobs total grew by 11,000, or 0.9%, in November and 57,300, or 4.7%, over the last 12 months according to Friday's releases of monthly labor market data by the Texas Workforce Commission and the U.S. Bureau of Labor Statistics. On a seasonally adjusted basis, November’s job growth was 0.3% in Austin, compared to 0.2% nationally and statewide.
Combining job losses for March and April 2020, Austin lost 137,100 jobs, or 12.0%, due to the impact of COVID-19. By May 2021, Austin surpassed the jobs total it had in the last pre-pandemic month. Since July 2022, Austin appears to be at or above the level of employment that might have been projected had there been no pandemic. In both 2018 and 2019, the average monthly percent change in nonfarm payroll jobs was 0.3%. The graph below illustrates what Austin’s job trend might have looked like if the pandemic hadn’t happened and Austin had sustained that average pre-pandemic growth rate.
As of November 2022, 46 of the top 50 metropolitan areas have regained their pre-pandemic level of jobs. Comparing metros based on where they stand relative to pre-pandemic February 2020, Austin, up 11.6%, is the second best performing major metro. Dallas (11.7%) took over the top spot this month and Fort Worth (6.8%) is also in the top 10. San Antonio (5.5%) ranks 12th, while Houston (4.5%) ranks 15th. Milwaukee ranks 50th with November 2022 jobs 2.2% below February 2020.
Austin’s year-over-year increase of 4.7%, or 57,300 jobs, makes it the 17thbest performing among the 50 largest metro areas. Dallas is the fastest growing metro with 6.8% growth. Houston (5.6%) ranks second. San Antonio (4.8%) and Fort Worth (4.3%) rank 11th and 23rd respectively.
For the year ending in November, private sector job growth in the Austin MSA is 5.5%, or 57,100 jobs, with gains across all major private industry sectors, but one. Austin's sizable government sector (15.9% of jobs) is up by only 200 jobs or 0.1%, thus bringing the overall year-over-year job growth rate to 4.7%.
Texas saw net private sector job growth of 5.8% with all private industry sectors adding jobs over the last 12 months. Total job growth was 5.1% as the government sector, which accounts for 15.5% of total state employment, grew by only 1.2%. For the nation, private sector job growth was 3.5% for the 12 months ending in November with all private industries adding jobs. Overall job growth was lower, at 3.2%, as the government sector jobs grew by a moderate 1.4%.
Jobs in November are up by 11,000 jobs or 0.9% from October in the not-seasonally-adjusted series for Austin. In the seasonally adjusted series, jobs are up by 4,200 or 0.3%. Seasonally adjusted jobs are up by 0.6% in Dallas, 0.4% in San Antonio, 0.1% in Houston, while down by 0.3% in Fort Worth. Statewide, seasonally adjusted jobs are up 33,600 or 0.2%. Nationally, seasonally adjusted jobs are up from October by 263,000 or 0.2%.
In Austin, 10 of the 11 major private industry sectors added jobs over the last 12 months, most notably leisure and hospitality (19.4% or 24,900 jobs); manufacturing (9.2% or 6,000); education and health services (6.6% or 9,100); and information (6.5% or 3,100). Only construction and natural resources lost jobs (1.9% or 1,400 jobs).
Ten private industries in Austin have surpassed pre-pandemic employment and only one has yet to regain 2020’s losses. Leisure and hospitality shed 62,200 jobs in March and April of 2020 (45% of all jobs lost). The industry finally regained those lost jobs in April 2022. Employment attained a new peak of 153,200 in November, 14.1% above February 2020. The industry’s November jobs total represents 12.0% of all jobs—nearly matching its 12.1% pre-pandemic share. Other services is now the lone private industry that has not regained February 2020’s level of employment. Other services jobs stand at 0.8% below the pre-pandemic total.
Statewide, over the last 12 months, all private industries added jobs. The two industries with the most significant growth are leisure and hospitality (12.5%) and information (12.3%). All private industries currently have more jobs now than they did in February 2020, most notably transportation, warehousing and utilities, which is up by 18.0%. Construction and natural resources is least recovered from 2020 losses—employment in the industry exceeds February 2020 by only 0.2%.
Nationally, all private industries added jobs over the 12 months ending in November, led by leisure and hospitality (7.2%). Information and education and health services are up by 5.6% and 3.9% respectively. Relative to February 2020, nine private industries have recovered pandemic-related job losses and two, leisure and hospitality and other services, have not.
Over the last 12 months, the net gain for private service-providing industries in Austin is 52,500 jobs, or 5.9%. Employment in goods-producing industries is up by 4,600 jobs or 3.3%. Statewide, private service-providing industries are up 525,200 or 5.6%, and goods-producing industries are up 116,200 or 6.3%.
Labor force, employment & unemployment
We also now have November 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 by the U.S. Bureau of Labor Statistics until December 29. In October, Austin had the 20th lowest rate of unemployment among the 50 largest metros. Unemployment numbers for November show Austin’s performance relative to the state and other major Texas metros being sustained.
In November, Austin’s not-seasonally-adjusted unemployment rate is 2.8%, while the other major Texas metros range from 3.2% in Dallas to 4.0% in Houston. Fort Worth and San Antonio are at 3.4%. Austin’s rate one year ago was 3.2%. The rates in the other major Texas metros are reduced from a year ago by 0.6 to 1.1 percentage points. The statewide rate is now 3.7%, down from 4.5% in November of last year. The national unemployment rate is 3.4%, down from 3.9% a year ago.
In 2019, the unemployment rate averaged 2.7% in Austin, 3.5% in Texas, and 3.7% nationally.
Travis County, at 2.7%, has the metro area’s lowest unemployment rate in November, while Caldwell County has the highest at 3.3%. The rate is 2.8% in Williamson County, 2.9% in Hays County, and 3.1% in Bastrop County.
On a seasonally adjusted basis, Austin’s November unemployment rate is 2.8%, improved from 2.9% in October. The statewide rate is unchanged at 4.0%. The national rate is 3.7%, unchanged from October.
Among Texas’ other major metros, Dallas has the next lowest seasonally adjusted November unemployment rate, 3.4%. Fort Worth is at 3.5%, San Antonio is at 3.6%, while Houston is at 4.4%. Seasonally adjusted unemployment rates for Texas metros are produced by the Federal Reserve Bank of Dallas. (The Texas Workforce Commission also produces seasonally adjusted rates for Texas metros, but publication lags the Dallas Fed’s estimates.)
In February 2020, before pandemic impacts, the number unemployed in Austin was 32,302. The number climbed to 130,460 in March and also exceeded 100,000 in April and May. In November 2022, unemployed stands at 37,895. That is 17.3% above the level of February 2020.
The Austin metro’s civilian labor force (employed plus unemployed) fell by 97,419 persons or 7.7% in March and April of 2020, while persons employed decreased by 195,577 or 16.0%. Labor force now stands at 9.4% above what it was in February 2020 and employed is estimated at 9.2% above.
Texas’ labor force is 4.5% above pre-pandemic February 2020, while employment 4.2% above. Nationally, civilian labor force and employment surpassed February 2020 for the first time in March 2022. In November, the national labor force is essentially unchanged from February 2020 (up by 0.02%), while employment is up by 0.5%.
Over the last 12 months, Austin’s labor force increased 2.6% and employed by 3.0%. Texas increased labor force by 2.2% and employed by 3.0%. Nationally, labor force growth was 1.3% and employment gained 1.9%.
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. The Central Texas Economy in Perspective page provides an archive of past articles on the labor market and many other topics.
Related Categories: Central Texas Economy in Perspective