August 2, 2023
|Austin economy dashboard (June 2023)|
|Job growth (annualized)|
|Unemployment rate||Avg. hourly earnings||Avg. hourly earnings growth y/y|
Austin experienced broad job gains in June, with most sectors expanding. The unemployment rate declined, and hourly earnings continued to grow. In addition, both median home sales prices and single-family permits increased.
The Austin Business-Cycle Index—a broad measure of economic activity—grew an annualized 13.0 percent in June, greater than the 4.5 percent gain in May (Chart 1).
Austin’s unemployment rate declined to 3.0 percent in June and remained below the state rate of 4.1 percent and the national rate of 3.6 percent (Chart 2). In June, the local labor force increased an annualized 5.8 percent.
Austin employment increased 4.5 percent in June, greater than May’s 4.2 percent rise. Sectors with the greatest improvement were health and education services (33.9 percent, or 3,652 jobs) and manufacturing (13.3 percent, or 501 jobs). The only sectors to experience declines in June were leisure and hospitality (down 11.0 percent, or 1,372 jobs) and trade, transportation and utilities (down 4.9 percent, or 882 jobs) (Chart 3). Year to date, Austin’s payroll employment has grown 3.4 percent.
The three-month moving average of Austin wages increased 0.4 percent in June (Chart 4). The average hourly wage of $33.37 is, for the first time in 15 years, less than the nation’s average ($33.46). However, Austin earnings remain greater than the state average of $31.13. Year over year, Austin wage growth of 1.4 percent is slower than U.S. growth of 4.4 percent and Texas growth of 4.5 percent.
Austin’s single-family housing permits have rebounded, up 1.5 percent in June (Chart 5). This is narrower than the state’s 5.0 percent increase for the month. Year over year, Austin’s single-family permits are down 37.5 percent, wider than Texas’ 22.4 percent decline.
Austin’s median existing-home price rose 1.7 percent in June, reaching $456,851 (Chart 6). In contrast, the state registered flat growth of 0.2 percent, and the median home price remained stable at $336,049.