San Antonio Economic Indicators

November 26, 2024

San Antonio employment grew in October. Wages fell and retail sales tax revenue decreased slightly. Office vacancy remained elevated in the third quarter.

Business-cycle index

The San Antonio Business-Cycle Index, a gauge of economic conditions in the metro area, increased an annualized 3.0 percent in October, slower than the 3.4 percent rise in September (Chart 1).

Labor market

Employment growth continues

San Antonio payrolls rose in October, growing at an annualized 2.2 percent (2,150 jobs). From July to October, payrolls grew 3.7 percent (10,800 jobs). Job gains from July to October were led by educational and health services (4.8 percent, or 2,100 jobs), government (4.5 percent, or 2,000 jobs), leisure and hospitality (5.2 percent, or 1,800 jobs), trade, transportation and utilities (2.5 percent, or 1,300 jobs), and professional and business services (2.8 percent, or 1,100 jobs) (Chart 2). The government sector continues to grow at a quicker pace than it did prepandemic. The information sector lost 86 jobs (2.0 percent). Year-to-date total nonfarm employment growth in San Antonio was 1.0 percent annualized, slower than Texas (1.6 percent) and the U.S. (1.3 percent).

Unemployment rate edges up

The San Antonio unemployment rate ticked up to 3.9 percent in October (Chart 3). The unemployment rate in Texas and the U.S. held steady at 4.1 percent.

Wages dip

The average hourly wage in San Antonio fell to $29.84 from September's $30.19. However, the three-month moving average of San Antonio wages grew an annualized 1.7 percent in October, while smoothed Texas wages rose 2.1 percent, and smoothed U.S. wages were up 4.5 percent. Hourly wages in San Antonio are below both the state and national averages (Chart 4). In the past year, wages in San Antonio have risen 3.7 percent, which is slower than the increase in Texas (3.8 percent) and the U.S. (4.0 percent).

Consumer spending

Sales tax receipts are a proxy for consumer spending patterns. San Antonio sales tax revenue, adjusted for inflation, fell 0.4 percent in October compared with the previous month, and Texas sales tax revenue increased 1.0 percent (Chart 5). Year over year, San Antonio sales tax revenue increased 5.9 percent, while the state's sales tax revenue rose 5.3 percent.

Office market

In the third quarter, 19.2 percent of San Antonio's office space lay vacant, a lower vacancy rate than in Dallas (23.6 percent) (Chart 6). San Antonio's office vacancy rate remains above the prepandemic norm; in the third quarter, it was 5.3 percentage points above its level at the end of 2019. Office rents were $3.60 lower per square foot in San Antonio than in Dallas. The office market in both metro areas remains weak, with vacancy rates still elevated.

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