Austin Economic Indicators

Austin employment grew in April, the unemployment rate was stable, and wages increased. The median house price declined, and home inventories fell.

Business-cycle index

The Austin Business-Cycle Index, a broad measure of economic activity, grew an annualized 7.0 percent in April, faster than the 1.5 percent gain in March (Chart 1).

Labor market

Unemployment rate stabilizes

Austin’s unemployment rate stayed at 3.4 percent in April, remaining below the state’s and nation’s rates of 4.0 and 3.9 percent, respectively (Chart 2). In April, the local labor force increased an annualized 2.1 percent, while the state’s increased 3.0 percent, and the nation’s grew 0.6 percent.

Employment increases

Austin employment grew 4.6 percent in April after decreasing 2.4 percent in March (Chart 3). Sectors with the most growth were trade, transportation and utilities (2,248 jobs), leisure and hospitality (1,298 jobs), and professional and business services (845 jobs). Sectors that saw a decline included construction and mining (-381 jobs), information (-203 jobs) and manufacturing (-169 jobs). Year to date, Austin has seen 2.3 percent employment growth, below the state’s 2.9 percent gains and the nation’s 1.9 percent growth.

Wages grow

Austin’s three-month moving average of wages increased an annualized 1.0 percent in April (Chart 4). The three-month moving average hourly wage was $34.72—about the same as the nation’s average but higher than the state’s rate of $32.64. Year over year, Austin’s 3.2 percent wage growth was slower than U.S. gains of 3.9 percent and Texas growth of 4.6 percent. In April, the average hourly wage was $34.51.

Housing

Austin’s median home price declined 1.0 percent in April (Chart 5). Year over year, home prices trended down—falling 5.1 percent in the metro and 1.9 percent in the state. At the same time, Austin home inventories declined to 4.1 months in April. Months of inventory remain below six months, which is generally considered a balanced housing market. A year ago, home inventory levels in Austin were 3.4 months, while they were 3.0 months in both Texas and the U.S.