El Paso Economic Indicators

November 02, 2026

The El Paso economy contracted in recent months. Employment decreased in the three months ending in September, with the decline generally broad-based across sectors. Meanwhile, the unemployment rate ticked down. Wages dipped in September but remained above year ago levels. Home prices increased, and inventory fell.

Labor market

Employment falls in September

El Paso employment fell an annualized 1.3 percent in September after declining 1.8 percent in August. Texas employment decreased an annualized 1.6 percent in September while employment nationally grew 0.2 percent. Employment in El Paso has grown 9.5 percent since February 2020, outpacing the nation’s 4.4 percent increase but slower than the state’s 11.4 percent rise (Chart 1).

Employment decline broad-based across sectors

El Paso payroll employment fell an annualized 0.9 percent in the third quarter but was little changed (-0.1 percent) year to date (Chart 2). The sector with the fastest payroll growth from June to September was manufacturing (5.2 percent), and those with the largest payroll declines were information (-7.4 percent), education and health services (-3.2 percent), and mining and construction (-2.6 percent).

Unemployment rate dips

The unemployment rate in El Paso ticked down to 4.2 percent in September (Chart 3). The jobless rate is the same in the U.S. but higher in Texas (4.4 percent). Meanwhile, El Paso's labor force contracted an annualized 1.4 percent in September and is down 0.8 percent compared with September 2025. The metro has always faced strong out-migration to larger metros, especially among young working-age professionals. However, the recent nationwide decline in international immigration has placed even greater strain on the area's labor force.

Wages slip

The three-month moving average of nominal hourly wages in El Paso declined to $25.17 in September. Year over year in September, wages in El Paso rose 2.9 percent, while wages in Texas increased 5.3 percent (Chart 4). U.S. wages grew 3.1 percent in September. Wages in El Paso are lower than the state ($36.34) and the nation ($37.74).

Housing market

El Paso's median home price increased 2.9 percent to $288,000 in September (Chart 5). Year over year, median home prices were up 7.2 percent in the metro area and 0.1 percent in Texas. El Paso home inventories decreased to 3.3 months in September from 3.4 months in July. This is below six months, which is generally considered a balanced housing market. A year ago, home inventory levels in El Paso were 4.1 months.

Notes

Data may not match previously published numbers due to revisions. The El Paso metropolitan statistical area includes El Paso and Hudspeth counties.

NOTE: Data may not match previously published numbers due to revisions.

About El Paso Economic Indicators

Questions or suggestions can be addressed to Isabel Brizuela. El Paso Economic Indicators is published quarterly.