Labor Data: Dallas Competitive Labor Market Continues
ThinkWhy It Matters
It is well known that the metro area is a major business hub and is now home to 24 Fortune 500 companies. Low cost of doing business and moderate cost of living, attract many companies and people to the area. With all the good news, there is room for caution. With so many jobs being created, home price increases do not equal the national average, and home prices could see continued decelerations.
Employers in the tech arena should also pay close attention to the demand for skilled labor since there is a very short supply. Wages are increasing in this industry category more than most others, and this will drive up costs and competition to recruit. To find skilled labor, strategic planning and time will be involved, and budgets will likely need to be adjusted for hiring managers to better predict time to fill roles and what to pay in order to be competitive.
Second, only to Chicago in job gains for the month of June, Dallas is another strong growth economy to watch. The diversified economy in the Dallas metro area produced a monthly job gain of 12,500 in June. From the May 2019 reporting, the metro area unemployment rate remains low at 2.7 percent. Compared to its five-year history, job growth in the metro increased approximately 40 basis points. This is impressive growth, as the metro is still producing close to 100,000 jobs on an annual basis at this stage of the economic cycle. During optimal economic conditions, the metro area can produce 90,000 to 100,000 jobs and the 10-year historical average job gain stands close to 71,000 jobs. So, this is one metro that is outpacing its historical job gain average.
“We are still growing at or above potential. That could change, but that’s still my view,” Dallas Federal Reserve President Robert Kaplan.
• With a historic low unemployment rate, the metro also saw wage growth increase by 3.6 percent.
• Professional and Business Services lead the share of jobs in the metro area.
• Tech jobs, as part of Professional and Business Services, led all industries in the area in job growth at over 10 percent in June 2019.
• Among the blue-collar jobs, Mining, Logging and Construction, and Leisure & Hospitality industries are contributing to job growth in the area as both show about 6 percent job growth during June 2019.
Although the single-family jobs-to-permit ratio in Dallas remains above the equilibrium, it is multi-family ratio remains below equilibrium. Dallas is one of the top metros in the country for multi-family permitting. According to the Texas Association of Realtors, home prices in Q12019 have increased 3.0 percent annually in the Dallas metro area compared to the national growth of 3.9 percent.
Learn more about metropolitan area unemployment figures, with insight into local market employment statistics, including job growth and hot and cold employment sectors with ThinkWhy's Major Market Activity Reports.