El Paso Economic Indicators

Employment in El Paso grew in December, and the unemployment rate fell slightly. Wages in the metro area rose, though at a slower rate than in the state. Existing-home sales increased further, while months of inventory held steady.

Labor market

Employment grows moderately

El Paso employment increased an annualized 0.5 percent (400 jobs) from September through December (Chart 1). Government experienced the largest gains (700 jobs), followed by education and health services (500 jobs). Transportation and utilities experienced the largest decline (-500 jobs), and leisure and hospitality experienced the second-largest drop (-300 jobs). Over the past year, employment grew an annualized 2.1 percent in El Paso, faster than the state’s 1.7 percent increase. Professional and business services experienced the largest gains last year (4,300 jobs) followed by education and health services (2,600 jobs). –

Unemployment ticks down

El Paso’s unemployment rate decreased slightly to 4.2 percent in December (Chart 2). El Paso’s jobless rate matched that of the state’s but was slightly higher than the nation’s (4.1 percent).

Wages increase slightly

El Paso’s average hourly earnings increased slightly in December to $23.09 from $22.77, still below the state’s average of $34.18. Year over year in December, wages in the metro area rose 0.8 percent (Chart 3). Meanwhile, wages grew at a faster rate in both Texas (6.0 percent) and the U.S. (4.0 percent) over the same period.

Housing

Smoothed existing-home sales edged up further in December. Year over year in December, existing-home sales were up 9.4 percent in El Paso. Meanwhile, inventories held steady at 3.5 months of supply for the third month in a row (Chart 4). While inventories have recovered from record-low levels in late 2021 and early 2022, they remain below six months, the level generally considered a balanced housing market.