3.3%

WHERE DO WE STAND?

Over the past 5 years, the annual unemployment rate for Travis County increased to 6.4% in 2020, then decreased to 2.9% in 2022, followed by another increase to 3.3% in 2023. These fluctuations are due to the recession triggered by the global COVID-19 pandemic and the subsequent economic recovery. In 2023 the City of Austin had the 10th lowest unemployment rate among the 50 largest cities in the nation.  Local unemployment rates continue to be lower than the state and national unemployment rates.

A CLOSER LOOK

The average unemployment rate for Black Travis County residents between 2018 and 2022 was 5.5%, which was much higher than the 4% unemployment rate for White residents. The Hispanic unemployment rate was 4.4% over the same time period.

This graph compares the average unemployment rate between two different five-year periods (2013 to 2017 and 2018 to 2022).

WHAT IT TAKES TO GET AHEAD

Despite low unemployment, many of the jobs locally available are at the lower end of the income spectrum. According to the Economic Policy Institute (EPI) Family Budget Calculator, $97,895 is required to make ends meet for a family with one adult and two children in the Austin MSA. An analysis of data provided by Austin Community College estimates that 84% of all jobs created between 2012 and 2022 paid less than that amount.

PERCENT EMPLOYED

Since the unemployment rate only measures individuals who are actively seeking employment, it fails to account for individuals who have become discouraged by poor job prospects and stopped searching for work, as well as anyone who chooses not to work for pay, such as retirees or family caregivers. The percent employed measures the percent of individuals, within a given category, who are employed. The labor participation rates in Austin, Travis County, and the Austin MSA have remained relatively stable over the past 5 years, having increased slightly, and are higher than the state and the USA.

* The US Census Bureau did not release 2020 ACS 1-Year Data. Without the population data from the ACS, labor participation rates were not possible to calculate for 2020.

PERCENT EMPLOYED

This graph compares employment participation rates by race and ethnicity, with an additional break-down by gender.  In most racial or ethnic groups, except African Americans, males participated in the workforce at higher rates than females. In Travis County, Black women participate in the labor force at a higher rate than women from other ethnic groups. Travis County residents who identify as Asian showed the greatest disparity by sex. An estimated 94% of Asian males between the ages of 25 and 64 were employed in 2022, while 77% of Asian females were employed.

UNEMPLOYMENT BY
EDUCATIONAL ATTAINMENT

Postsecondary education and completion is correlated with decreasing rates of unemployment. From 2018 to 2022, the unemployment rate was 5.94% for Travis County residents with a high school diploma compared to 2.46% for Travis County residents with a Bachelor’s degree or higher.  Travis County residents with a High School diploma or less are unemployed at a rate (4.98%) that is more than twice the rate of residents with a Bachelor’s degree or higher. Travis county residents with some college or an Associate’s degree reported  being unemployed at a rate of 4.45%.

UNEMPLOYMENT BY
DISABILITY

People with disabilities have much higher unemployment rates than people with no disability.  In 2022, 7.6% of people with disabilities in Travis County were unemployed, compared to 2.6% of people with no disability, however, due to small sample size, estimate for Travis County residents with a disability should be used with caution. Overall, 92% of people with disabilities in the labor force were employed, compared to 97% of people without a disability.

TOP OCCUPATIONS AND WAGES

This table shows the median annual wages for the twenty-five occupations with the largest number of employees in the 5-county Austin Metro Area in 2022.

Those in medium blue are occupations with a median annual wage of less than $30,000. Those in light blue pay a median annual wage of $30,000 to $60,000 per year.

JOB GROWTH

From 2012 to 2022, 42% (174,469) of the jobs created within the Austin MSA paid less than $50,000 per year.

The Economic Policy Institute (EPI) estimates the annual wages needed to meet basic living expenses, including housing, child care, transportation, medical expenses, savings, and taxes. Based on analysis of EPI living wage estimates and job data provided by the Austin Community College,

• 42% of the jobs created from 2012 to 2022 pay less than the annual wage needed to support a single person living in the Austin MSA ($50,520).
• 84% of jobs created from 2010 to 2020 pay less than the annual wage needed to support a family with one adult and two children living in the Austin MSA ($97,895).

LABOR PARTICIPATION & INCOME

The average labor participation rate of residents between the ages of 20 and 64 in the Austin MSA was 79% in 2015. Census tracts with lower than average labor participation rates are indicated in dark orange and brown.

Census tracts with hash marks are those where more than half of all residents are low-income. Some areas in the northern, southern, and eastern parts of the City of Austin have high labor participation rates, but also a high proportion of low-income residents. This suggests that, though working, many are earning low wages.