San Antonio Economic Indicators

April 25, 2024

San Antonio payroll job growth slowed in March, but unemployment ticked down. In addition, wages rose, and retail sales tax revenue declined.

Business-cycle index

The San Antonio Business-Cycle Index, a gauge of economic conditions in the metro area, increased an annualized 3.3 percent from February to March, slightly slower than the 2.6 percent rise from January to February (Chart 1).

Labor market

Unemployment rate edges down

The San Antonio unemployment rate ticked down to 3.5 percent in March (Chart 2). The last time unemployment was this low in San Antonio was in December 2022. The rate declined despite slower job growth because the labor force declined at an annualized rate of 1.2 percent. The jobless rate was higher in the nation (3.8 percent) and even higher in the state (3.9 percent).

Employment growth slows

San Antonio payrolls increased an annualized 1.5 percent in March (1,453 jobs) (Chart 3). Job gains were driven by mining (16.3 percent, or 89 jobs), leisure and hospitality (10.6 percent, or 1,214 jobs), and manufacturing (6.5 percent, or 326). All other sectors experienced positive monthly growth except trade, transportation and utilities (-4.7 percent, or 844 jobs), information (-2.7 percent, or 40 jobs), and construction (-1.9 percent, or 107 jobs). Year-to-date total nonfarm employment grew 0.6 percent in San Antonio compared with gains of 2.5 percent in Texas and 2.1 percent in the U.S.

Wages rise

San Antonio wages rose an annualized 3.8 percent in March, slightly slower than Texas' increase (3.9 percent) and the nation's (4.1 percent). The three-month moving average of hourly wages in San Antonio was $28.95, below both the state average of $32.55 and the national average of $34.59 (Chart 4). In the past year, wages in San Antonio have risen 4.2 percent, slower than the increases in Texas (4.6 percent) and the U.S. (4.3 percent).

Retail sales tax revenue

San Antonio's revenue from sales tax, adjusted for inflation, declined 1.2 percent in March while state sales tax revenue increased 3.0 percent (Chart 5). In San Antonio, sales tax revenue has been stagnant compared to 2023, the six-month moving average grew 0.2 percent year-over-year for the last two months. State sales tax revenue was up a slight 0.8 percent in March compared with March 2023.

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