San Antonio Economic Indicators

San Antonio payroll job growth picked up in May and wages and retail sales tax revenue rose, while unemployment ticked down.

Business-cycle index

The San Antonio Business-Cycle Index, a gauge of economic conditions in the metro area, increased an annualized 4.3 percent from April to May, more than double the 2.0 percent rise from March to April (Chart 1).

Labor market

Unemployment rate edges down

The San Antonio unemployment rate ticked down to 3.6 percent in May (Chart 2) from 3.7 percent in April. In 2024, the unemployment rate has been hovering in the 3.5 to 3.7 percent range, not trending up or down. The unemployment rates in both Texas and the U.S. were higher at 4.0 percent.

Employment growth picks up

San Antonio payrolls increased an annualized 2.3 percent in May (2,220 jobs) (Chart 3). Job gains were driven by other services (7.3 percent, or 251 jobs), construction (6.7 percent, or 361 jobs) and mining (4.7 percent, or 27 jobs). All other sectors experienced positive monthly growth except information (-3.2 percent, or 46 jobs) and financial activities (-1.7 percent, or 140 jobs). Year-to-date total nonfarm employment grew 1.1 percent in San Antonio compared with gains of 2.8 percent in Texas and 1.9 percent in the U.S.

Wages rise

San Antonio wages grew an annualized 4.4 percent in May, while Texas wages rose 0.5 percent, and U.S. wages were up 4.1 percent. The three-month moving average of hourly wages in San Antonio was $29.00, below both the state average of $32.62 and the national average of $34.79 (Chart 4). In the past year, wages in San Antonio have risen 4.0 percent, slower than the increases in Texas (4.9 percent) and the U.S. (4.1 percent).

Retail sales tax revenue

San Antonio’s revenue from sales tax, adjusted for inflation, grew 3.4 percent in May and state sales tax revenue increased 2.0 percent (Chart 5). While tax revenue for both the state and metro increased compared to April, year-over-year growth showed sluggishness at the state level. Texas retail tax revenue basically didn’t change, growing only 0.1 percent in May compared to the previous year. In comparison, San Antonio tax revenue notched 1.9 percent growth in the same period.