Austin, September 20, 2025

News Summary

The Austin metropolitan area is seeing a marked slowdown in job growth, adding only 9,600 jobs from July 2024 to July 2025. This downturn has resulted in rising unemployment, with rates reaching 3.9% in August, influenced by recent flooding. While the overall Texas economy added 17,600 jobs, the job growth rate in Austin is now below the national average, prompting concerns regarding economic stability in a region historically known for robust growth.

 

Austin

The Austin metropolitan area is experiencing a significant slowdown in hiring, contributing to rising unemployment due to recent flooding impacts. From July 2024 to July 2025, the economy added only 9,600 jobs, representing one of the weakest annual job gains in the region over the past 15 years. This translates to a job growth rate of just 0.8%, falling below the national growth rate for the first time since December 2003.

According to data released by the Texas Workforce Commission, the unemployment rate in Austin-Round Rock-San Marcos rose to 3.9% in August, marking an 11.4% increase from the previous month. Neighboring San Antonio also felt the impact, with its unemployment rate reaching 4.4% — a 12.8% increase from July. The rise in unemployment claims in Central Texas during early September is believed to be linked to flooding that occurred in early July.

Despite the slowdown in job growth in the Austin area, Texas overall added 17,600 new jobs in August, although only 8,600 new people joined the civilian labor force. Additionally, within the year 2025, Texas has added 195,600 jobs, exceeding the national growth rate by half a percentage point, while the civilian labor force increased by 169,500 people in the same period.

Sector Performance and Job Gains

Significant job gains were observed in the leisure and hospitality sector, contributing to statewide employment increases. In August alone, the sector added 10,900 jobs statewide, with Austin contributing 2,700 jobs and reaching a total of 152,200 jobs in this sector. San Antonio also reported gains in leisure and hospitality, adding 2,400 jobs.

Other sectors performing well included private education and health services. In San Antonio, the sector added 9,800 jobs, bringing the total to 190,100. Meanwhile, Austin’s private education and health services sector expanded by 2,400 jobs to a total of 166,800 jobs.

Unemployment Rates Comparison

The San Antonio-New Braunfels area has a civilian labor force of 1.38 million people, with 60,049 unemployed</b. In contrast, Austin’s civilian labor force totals 1.52 million, with 59,725 unemployed. The number of unemployment claims in Bexar County, where San Antonio is located, surpassed 2,000 for the first time since August 17, 2021. Travis County experienced a rise as well, with unemployment claims doubling from the previous week to 1,381.

The effects of flooding have also led to increased unemployment claims in Kerr County, associated with state unemployment assistance programs. Earlier statistics showed that unadjusted unemployment rates for both Austin and San Antonio had increased even in May.

Statewide Context and Comparison

While Texas as a whole is performing moderately well with job growth, the state recorded its lowest unemployment rates in areas such as Amarillo, Midland, and San Angelo, each at 3.6%. Conversely, the highest unemployment rate of 8% was noted in Eagle Pass.

The recent slowdown in the job market is being closely monitored, particularly as the Austin area historically has enjoyed robust economic growth for over 15 years.

Key Statistics

• Job Growth (July 2024 – July 2025): 9,600 jobs
• Job Growth Rate: 0.8%
• Austin Unemployment Rate (August): 3.9%
• San Antonio Unemployment Rate (August): 4.4%
• Texas Jobs Added (August): 17,600
• Leisure and Hospitality Jobs (Austin): 152,200
• Private Education and Health Services Jobs (Austin): 166,800

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Additional Resources

• The Statesman
• Wikipedia: Austin
• Express News
• Google Search: Austin job growth
• CoStar
• Google Scholar: Austin job growth
• Austin Monitor
• Encyclopedia Britannica: Austin
• Business Insider
• Google News: Austin job growth