The Texas economy is growing at a slower pace in recent months, with labor markets remaining tight. Energy activity has declined, and export growth has slowed this year. Initial unemployment claims increased slightly in early October, indicative of labor market cooling.
Austin led Texas metros in employment expansion through September (3.1%), followed by Dallas (2.3%) and Fort Worth (2.4%). Growth in Houston (2.0%) and San Antonio (1.1%) trailed the state average. The construction sector experienced the strongest gains, climbing 6.8% through September. The financial, manufacturing, and education and health services sectors also led Texas employment growth, while the energy sector shed jobs at a 2.1% annual rate.