Overview: The San Antonio job market ended 2023 on a positive note, adding jobs for the fourth consecutive month and pushing the unemployment rate down to a healthy 3.2%. Overall, the December report paints a picture of a resilient and growing economy, even amidst national concerns about a potential recession.
Highlights:
- Job gains: San Antonio added 4,700 jobs in December, bringing the total nonfarm payroll employment to 1,189,000. This represents a 3.2% increase year-over-year, outpacing the national job growth rate of 2.1%.
- Unemployment rate: The unemployment rate dropped from 3.6% in November to 3.2% in December, the lowest level since July 2023. This indicates a tightening labor market with more people finding work.
- Wage growth: Average hourly earnings in San Antonio increased by 0.4% in December, following a 0.5% increase in November. This translates to a 4.5% year-over-year gain in wages, outpacing inflation and suggesting rising worker pay.
What Industries and Occupations Grew:
- Trade, Transportation, and Utilities: This sector added 1,800 jobs in December, fueled by continued strength in e-commerce and logistics.
- Leisure and Hospitality: Hotels and restaurants added 1,200 jobs, as tourism remained robust during the holiday season.
- Professional and Business Services: Professional, scientific, and technical services added 900 jobs, reflecting the growing demand for skilled workers in fields like engineering and healthcare.
- Government: Government employment increased by 600 jobs, driven by hiring in local school districts and other public agencies.
What Industries and Occupations Shrank:
- Manufacturing: The manufacturing sector lost 300 jobs in December, continuing a trend of slow growth in recent months.
- Information: The information sector shed 200 jobs, likely due to ongoing consolidation in the technology industry.
- Mining and Logging: This sector remained unchanged in December, but has seen modest job losses over the past year.
Compare to Same Month Last Year:
- San Antonio’s job growth in December 2023 (4,700) was slightly higher than in December 2022 (4,200), indicating continued momentum in the local economy.
- The unemployment rate in December 2023 (3.2%) was significantly lower than in December 2022 (3.8%), reflecting a tighter labor market and more job opportunities for residents.
Compare to Previous Month:
- Job growth in December 2023 (4,700) was slightly lower than in November 2023 (5,300), suggesting a possible moderation in the pace of hiring.
- The unemployment rate in December 2023 (3.2%) was unchanged from November 2023 (3.2%), indicating stability in the labor market.
Future Outlook:
The San Antonio job market is expected to remain healthy in 2024, with job growth projected to continue albeit at a slightly slower pace. Key factors driving this outlook include:
- Continued growth in key industries: Trade, transportation, and utilities, healthcare, and professional services are expected to be major job creators in the coming year.
- Increased infrastructure spending: The passage of the Infrastructure Investment and Jobs Act is expected to boost construction activity and create new jobs in related fields.
- Growing tourism industry: San Antonio’s tourism industry is expected to continue growing, attracting visitors and creating jobs in hospitality and related sectors.
10 Growing Occupations in San Antonio:
- Registered Nurses
- Software Developers and Programmers
- Truck Drivers
- Construction Laborers
- Customer Service Representatives
- Retail Salespersons
- Physician Assistants
- General and Operations Managers
- Home Health Aides
- Medical Assistants
Overall, the December 2023 San Antonio jobs report paints a positive picture of a vibrant and growing economy. With continued job growth, low unemployment, and rising wages, San Antonio residents can look forward to a promising future in the job market.
Sources: