This Just in: Austin city’s unemployment rate dropped again in November, and the ATX continues to boast one the lowest unemployment rates among the top 25 largest U.S. cities.

  • Austin holds the No. 4 spot in the updated ranking. The city has been in the top five each month going back to January 2020.

Based on the latest preliminary data from the Bureau of Labor Statistics, the city of Austin’s unemployment rate is 3.0% as of November 2021 (in October, it was 3.2%).

  • Ahead of Austin (3.0%) is Seattle (2.5%), Indianapolis (2.6%), and Nashville (2.7%). Tied with Austin at No. 4 is Phoenix.
  • Where other Texas cities rank: San Antonio is No. 11 (4.1%), Dallas and Fort Worth are tied for No. 12 (4.3%), El Paso is tied for No. 15 (4.7%), and Houston is No. 17 (5.0%).

Of note: The city’s unemployment rate fell in line with the Austin metro’s rate. The metro rate dipped from 3.4% in October to 3.2% in November.

Takeaways from the ground: Austin-area businesses are hiring, and employers in the region are willing to pay higher wages for skilled workers. Still, the labor market remains tight.

  • Many sectors report difficulty finding the talent to fill critical roles, and residents motivated to take these higher-pay positions often lack the required skills.
  • Job seekers have the power in today’s tight labor market. Having the right skills can help workers step into the region’s higher-paying, in-demand jobs.
  • Workforce Solutions Capital Area is your one-stop shop for assistance. Contact us for more information.

What’s next: So that everyone can compete in Austin’s labor market, WFS is soon launching the Hire Local Plan (the next version of the Austin Metro Area Community Workforce Plan).

  • Its goal is to address Austin’s affordability issues and improve residents’ access to better economic opportunities through skills training.


The top 25 largest U.S. cities with the lowest unemployment rates are:

  1. Seattle, WA (2.5)
  2. Indianapolis, IN (2.6)
  3. Nashville, TN (2.7)
  4. [T-4] Austin, TX (3.0)
  5. [T-4] Phoenix, AZ (3.0)
  6. [T-6] Columbus, OH (3.3)
  7. [T-6] San Francisco, CA (3.3)
  8. San Jose, CA (3.5)
  9. Charlotte, NC (3.6)
  10. Jacksonville, FL (3.7)
  11. San Antonio, TX (4.1)
  12. [T-12] Dallas, TX (4.3)
  13. [T-12] Fort Worth, TX (4.3)
  14. [T-12] San Diego, CA (4.3)
  15. [T-15] El Paso, TX (4.7)
  16. [T-15] Boston, MA (4.7)
  17. Houston, TX (5.0)
  18. Memphis, TN (5.1)
  19. Washington, DC (5.2)
  20. Chicago, IL (5.9)
  21. Baltimore, MD (6.1)
  22. Philadelphia, PA (6.5)
  23. Los Angeles, CA (7.2)
  24. New York, NY (8.0)
  25. Detroit, MI (8.4)
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