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Austin's Economy Outpaces State, Nation on Jobs and Growth
February 2026 data shows the city sustaining lower unemployment and consistent job additions while the metro area builds on prior GDP expansion and a dense startup base.
How we reported this
Austin recorded an unemployment rate of 3.5 percent in February 2026, below the Texas rate of 4.1 percent and the national rate of 4.4 percent.
Job Additions and Sector Performance
The Austin metro area added 14,133 jobs during 2025 for 1.0 percent growth, including 2,900 positions in December 2025 alone. Government, Education and Health Services, and Retail Trade accounted for the leading share of those gains. These figures point to continued hiring demand in core local sectors even as national conditions remain mixed.
Output Growth and Housing Market Shift
The region posted a GDP of $268 billion in 2024 with 3.7 percent real growth. Metro GDP exceeded $245 billion after a 39 percent increase from 2020 to 2025. Median home sale prices in the Austin metro reached $430,000 by January 2026, accompanied by a home price index decline of 3.6 percent. The combination of sustained output expansion and softening home prices creates conditions that differ from tighter markets elsewhere.
Austin hosts 1,768 startups and 16 unicorns valued above $1 billion, backed by more than 8,300 high-tech employers. This concentration of founder activity and technology employers provides an additional layer of economic activity that many peer regions lack at comparable scale.
Positioning Relative to Broader Trends
The unemployment gap versus Texas and national levels, paired with the documented job gains and GDP trajectory through 2025, illustrates how Austin has maintained hiring momentum while home prices adjusted downward. Observers tracking similar metro economies note that these metrics place the city in a distinct position on labor market tightness and housing accessibility.
Residents and businesses monitoring conditions can review the latest indicators from Opportunity Austin and the Dallas Fed for ongoing updates on employment, output, and price trends.