Austin Employment Declines 0.8 Percent in September
The local labor market reports an annualized dip in payrolls even as hourly wages reach an average of $38.04.
Updated on Oct. 27, 2026 in Employment
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Austin employment saw an annualized decline of 0.8 percent in September 2026, even as hourly wages averaged $38.04. The local labor force grew by 5,000 individuals since September 2025, while the unemployment rate held steady at 3.6 percent.
Why it matters
Understanding these shifts helps households in Austin gauge the local job market's health and potential wage growth. While some sectors face contraction, the steady unemployment rate and rising nominal wages offer a nuanced view of the area's current economic climate.
Austin employment fell 0.8 percent on an annualized basis in September, an improvement from the 3.0 percent decline recorded in August. Despite this, the unemployment rate held at 3.6 percent as nominal hourly wages reached a three-month moving average of $38.04.
The details
Local payrolls experienced mixed performance over the three months ending in September, with growth in manufacturing, information, and leisure sectors. Conversely, government, construction, and healthcare services saw headcount reductions. These labor dynamics coincide with a commercial real estate market showing 592,000 square feet of office net absorption and 3,277,000 square feet of industrial net absorption in the third quarter.
Timeline
September 2025 marked the labor force baseline of 5,000 additional individuals.
August 2026 saw a 3.0 percent annualized decline in Austin employment.
September 2026 recorded the 0.8 percent annualized employment drop and $38.04 hourly wage average.
Money Landscape
The recent contraction follows an extended period of growth for the Austin labor market dating back to February 2020. This data reflects a cooling phase in the broader economic cycle as the city balances workforce expansion with shifting industry payroll needs.
Residents should review their local sector stability, as payroll growth is concentrated in manufacturing and information, while government and health services have seen recent declines. If you are negotiating your salary, note that the moving average for hourly wages currently sits at $38.04.
The takeaway
The Austin labor market shows signs of shifting, with payrolls diverging significantly across different professional sectors. Consider tracking your specific industry's payroll trends and consulting with a financial professional to discuss how local wage developments influence your long-term budget.
Further reading
For a broader look at the area's workforce trends, see our Employment section.
Source note: This article includes information reported by Dallasfed.
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