Federal Reserve Bank of Dallas
04/25/2024 | Press release | Distributed by Public on 04/25/2024 12:20
El Paso Economic Indicators
April 25, 2024
| El Paso economy dashboard (March 2024) | |||
|
Job growth (annualized) Jan.-March '24 |
Unemployment rate |
Avg. hourly earnings |
Avg. hourly earnings growth y/y |
| -0.2% | 4.4% | $22.95 | -0.7% |
El Paso job growth in March fell, while the unemployment rate remained the same. In addition, wages fell, and U.S. industrial production grew. Auto production increased, but sales decreased.
Business-cycle index
The El Paso Business-Cycle Index edged up 0.2 points from February to March (Chart 1). The index was up 3.6 percent from March 2023.
Labor market
Job growth falls
El Paso employment dipped 1.3 percent (-373 jobs) from February to March (Chart 2). Job losses were greatest in government (-314 jobs) and trade, transportation and utilities (-152 jobs). The largest gains were in leisure and hospitality (187 jobs).
So far in 2024, total nonfarm employment contracted 0.2 percent (-198 jobs). Other services added the most jobs on net (173 jobs), followed by leisure and hospitality (159 jobs) and information (158 jobs). Construction and mining contracted the most (-246 jobs), followed by education and health services (-232 jobs). El Paso's job growth in 2024 is below the state's 4.3 percent and the nation's 2.1 percent.
Unemployment rate holds steady
El Paso's unemployment rate stayed at 4.4 percent in March (Chart 3). This was higher than the rates for both the state at 3.9 percent and the nation at 3.8 percent. Historically, from 2000 to 2024, El Paso's unemployment rate has been 21.8 percent higher than Texas' on average and 19.3 percent higher than the U.S'.
Wage growth ticks down from last year
El Paso's average hourly wages were $22.95 in March, a 0.7 percent decrease from March 2023 (Chart 4). While year-over-year growth on average was above 8.0 percent during first quarter 2023, wage growth has slowed as the labor market has cooled locally, and year over year, it declined to zero in first quarter 2024. Meanwhile, March's average hourly wages were higher in Texas and the nation at $32.64 and $34.69, respectively.
Industrial production and maquiladora-related activities
The monthly U.S. industrial production (IP) index grew 0.4 percent in March but was down 0.3 percent from the previous year (Chart 5). The Institute for Supply Management Index increased 2.5 percent in February, up to 50.3. Meanwhile, Mexico's IP index was down 0.1 percent in February but grew 1.5 percent from February 2023.
U.S. monthly auto production increased an annualized 596,200 units in March, while sales fell an annualized 208,000 units. Production was up 16.3 percent from March 2023, and sales were up 3.7 percent. Industrial and auto activity are closely linked to the El Paso area economy because of cross-border manufacturing relationships. Roughly half of the maquiladoras in Juárez, Mexico, are auto related.
NOTE: Data may not match previously published numbers due to revisions. The El Paso metropolitan statistical area includes El Paso and Hudspeth counties.
About El Paso Economic Indicators
Questions or suggestions can be addressed to Isabel Dhillon at [email protected]. El Paso Economic Indicators is published every month after state and metro employment data are released.