Dallas−Fort Worth Economic Indicators

Growth in the Dallas−Fort Worth economy picked up in December. Employment grew robustly, and unemployment dropped. Sales tax collections rose, and office and industrial net absorption was positive in the fourth quarter.

Labor market

Payrolls expand

DFW employment grew an annualized 3.5 percent in December after contracting 1.5 percent in November (Chart 1). While employment grew heartily in Dallas at 4.4 percent in December, growth was slower in Fort Worth at 1.4 percent. Payrolls expanded 3.1 percent in Texas and 2.3 percent in the U.S. in December.

Job growth slows in fourth quarter

DFW job growth slowed to an annualized 0.6 percent in the fourth quarter following strong third-quarter gains (Chart 2). Financial activities led the growth. Employment contracted in trade, transportation and utilities, education and health services, construction and mining, and other services.

Retail sales tax collections

In December, DFW retail sales tax collections rose 1.3 percent to $255 million (Chart 3). Sales tax collections were up 1.6 percent in Dallas and 0.9 percent in Fort Worth. However, the state’s collections were down 0.9 percent. In 2024, the metroplex’s retail sales tax collections increased 2.3 percent from 2023 totals, and Texas’ collections rose 1.6 percent.

Commercial real estate

Office vacancy rises

Demand for office space in DFW gained some momentum in fourth quarter 2024. Net absorption was positive at 270,000 square feet, according to data from CBRE Research (Chart 4). Still, the vacancy rate rose to a multiyear high of 26.8 percent. In 2024, the region experienced -2.3 million net absorption, and the vacancy rate rose 1.5 percentage points.

Industrial leasing stays positive

Positive momentum in industrial leasing continued in the fourth quarter. Net absorption was 4.1 million square feet, outpacing the first quarter but falling behind the second and third, according to CBRE (Chart 5). The vacancy rate dropped to 9.2 percent, and new-space deliveries slowed to 3.3 million square feet. The construction pipeline continued to recede as well.