Texas Employment Steady, Inflation Down

Texas employment held steady in the latest Outlook for the Texas Economy report from the Texas Real Estate Research Center, with nonfarm employment decreasing less than 0.01 percent in June 2024 compared to May. The state capital of Austin added 1,100 employees or 0.1 percent. While this is an increase, Austin added 3,800 employees the previous month. Houston and San Antonio had negligible increases. Dallas employment decreased by 0.03 percent.

As far as wages in Texas’ metro areas, DFW wages increased by $0.43, Austin wages increased $0.35, San Antonio wages increased $0.09, and Houston wages decreased $0.21. Texas worker sentiment improved, and the participation rate reached 64.3 percent. Unemployment in the state remained steady at four percent, where it has been since April 2024.

Inflation (Consumer Price Index) fell 0.1 percent in June. This was the first month-over-month decrease since May 2020.

Home sales in Texas decreased 14.2 percent month over month, a “significant drop,” according to the report. Dallas had the biggest decrease in sales at 16.8 percent. Austin and Houston home sales decreased 14.5 percent. San Antonio had the smallest decrease of the major metros at 13 percent. High mortgage rates “played a major role in home sales declining in June, when home sales normally accelerate.” Home prices, however, “fell to a much lesser extent” than overall sales.

Exports from Texas decreased 2.7 percent month over month but increased 5.2 percent when comparing year over year. Demand for Texas oil and natural gas exports “remains subdued,” stated the report, which added that neither petroleum or coal have shown major shifts this year.