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

  • Austin holds the No. 3 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 3.2% as of October 2021 (in September, it was 3.3%).

  • Ahead of Austin (3.2%) is Nashville (2.9%) and Indianapolis (3.1%). Behind Austin is Phoenix (3.4%), Seattle (3.8%), and Columbus (3.8%).
  • Where other Texas cities rank: San Antonio is No. 11 (4.3%), Dallas and Fort Worth are tied for No. 12 (4.6%), El Paso is No. 14 (5.0%), and Houston is tied for No. 16 (5.2%).

Of note: The city’s unemployment rate fell in line with the Austin metro’s rate. The metro rate dipped from 3.5% in September to 3.4% in October.

Takeaways from the ground: The pace of job growth in the Austin area proves we live in one of the most resilient economies in the nation. But here’s a troubling fact: According to unemployment benefits data, those in our community most impacted by unemployment during the pandemic had less education.

  • There is an apparent need for workers of the future to have skills. And we know that Austin’s most in-demand occupations with opportunities for upward mobility and higher wages are in IT, healthcare, skilled trades, and manufacturing.
  • These industries are targeted in our Austin Metro Area Community Workforce Plan and continue to show resilience through the pandemic.
  • And demand for these industries isn’t expected to slow down. The outlook continues to brighten with the influx of jobs coming from companies like Tesla and Samsung.

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 improve residents’ access to better economic opportunities through skills training.


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

1. Nashville, TN (2.9%)
2. Indianapolis, IN (3.1)
3. Austin, TX (3.2)
4. Phoenix, AZ (3.4)
T-5. Seattle, WA (3.8)
T-5. Columbus, OH (3.8)
T-7. Charlotte, NC (3.9)
T-7. San Francisco, CA (3.9)
9. Jacksonville, FL (4.1)
10. San Jose, CA (4.2)
11. San Antonio, TX (4.3)
T-12. Dallas, TX (4.6)
T-12. Fort Worth, TX (4.6)
14. El Paso, TX (5.0)
15. San Diego, CA (5.1)
T-16. Houston, TX (5.2)
T-16. Boston, MA (5.2)
18. Washington, DC (5.6)
19. Memphis, TN (5.8)
20. Chicago, IL (6.7)
21. Baltimore, MD (6.9)
22. Philadelphia, PA (7.2)
23. Los Angeles, CA (7.9)
24. New York, NY (8.4)
25. Detroit, MI (10.0)

Print Friendly, PDF & Email