El Paso Economic Indicators

May 22, 2024

El Paso job growth in April increased, while the unemployment rate declined. In addition, retail sales tax revenue decreased, and U.S. industrial production remained unchanged. Auto production decreased, but sales increased.

Business-cycle index

The El Paso Business-Cycle Index edged up 0.8 points from March to April (Chart 1). The index was up 3.6 percent from April 2023.

Labor market

Job growth picks up

El Paso employment grew 3.2 percent (892 jobs) from March to April (Chart 2). The largest gains were in government (674 jobs), trade, transportation and utilities (317 jobs), and leisure and hospitality (314 jobs). Job losses were greatest in professional and business services (-459 jobs) and construction and mining (-61 jobs).

So far in 2024, total nonfarm employment expanded 0.9 percent (1,038 jobs). Government added the most jobs on net (683 jobs), followed by leisure and hospitality (582 jobs) and trade, transportation and utilities (543 jobs). Professional and business services contracted the most (-699 jobs), followed by construction and mining (-313 jobs). El Paso's job growth in 2024 is below the state's 2.9 percent and the nation's 1.9 percent.

Unemployment rate holds steady

El Paso's unemployment rate dipped to 4.2 percent in April (Chart 3). This was higher than the rates for both the state at 4.0 percent and the nation at 3.9 percent.

Metro retail sales tax collections

In April, El Paso's retail sales tax collections, in real, inflation-adjusted numbers, fell 1.5 percent, outpacing the state's collections, which decreased 3.1 percent. Year over year, the metro retail sales tax collections fell 7.1 percent. Retail sales tax collections are connected to the peso, as a stronger peso stimulates retail spending across the border in El Paso, and a weaker peso encourages the opposite. Even with a strong peso, retail sales tax revenue has declined, probably due to local domestic consumption softening.

Industrial production and maquiladora-related activities

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. The monthly U.S. industrial production (IP) index did not change in April but was down 0.4 percent from the previous year (Chart 5). The Institute for Supply Management Index decreased 1.1 percent in April, down to 49.2. Meanwhile, Mexico's IP index was up 0.6 percent in March but grew 2.1 percent from March 2023.

U.S. monthly auto production decreased an annualized 458,000 units in April, while sales grew an annualized 175,000 units. Production was down 1 percent from April 2023, and sales were up 0.4 percent.

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