Unemployment & Labor Market
San Antonio's unemployment rate stands at 3.7%, within the healthy range of 3.5–4.5%. However, the year-over-year increase of 0.3 percentage points signals a modest deterioration in labor market conditions, as the jobless rate rises slightly. Although the overall rate remains low, the upward trend suggests emerging softness in employment absorption.
Workforce Supply
The civilian labor force in San Antonio is expanding at a rate of 1.47% year-over-year, indicating a positive and relatively strong growth in the available worker pool. This sustained growth supports long-term economic capacity, as a growing labor supply can meet rising demand. However, if job creation does not keep pace, it may exert mild downward pressure on wages.
Wage Growth
Average hourly earnings in San Antonio have increased by 4.08% year-over-year, exceeding the 4% threshold for strong wage growth. This increase likely outpaces inflation, contributing to improved real purchasing power for workers. The robust earnings growth reflects competitive labor pressures and supports stronger household consumption.
Labor Demand
San Antonio's labor demand is strong, as evidenced by a high Labor Demand Composite score of 6.44 and employment growth of 1.09% year-over-year, which is moderate but positive. With weekly hours worked 0.618% above the 12-month baseline, employers are relying on existing staff, indicating sustained demand. These metrics point to a labor market with solid underlying demand, despite only moderate payroll expansion.
Cost of Living
San Antonio's cost of living composite ratio is 1.23, indicating relatively high affordability compared to local earnings. This means residents can stretch their incomes further, particularly on housing. The city's affordability enhances its attractiveness for households and supports real income gains, despite broader regional cost pressures.
Office Economy
The Office Worker Ratio composite score is 1.36, very low compared to peer cities, indicating a minimal concentration of white-collar or professional services employment. San Antonio's economy is structurally tilted toward sectors like government, healthcare, logistics, and retail, rather than knowledge-intensive industries. This limits high-wage job density and may constrain long-term productivity growth.
Housing — Construction
Residential building permits have declined by 37.55% year-over-year, a sharp contraction in construction activity. This steep decline suggests waning builder confidence, possibly due to higher financing costs, oversupply concerns, or weakening demand. A drop of this magnitude raises risks of future supply shortages if demand rebounds without a corresponding construction response.
Housing — Market Velocity
Homes in San Antonio are taking a median of 61.0 days to sell, with a year-over-year increase of 1.67% in days on market. This indicates that homes are selling slightly slower than last year, signaling a softening market with reduced buyer urgency. The low Days on Market composite score of 6.99 confirms a slowdown in transaction velocity.
Conclusion
San Antonio's economy is performing above average overall, supported by a healthy unemployment rate, strong wage growth, and solid labor demand. Key strengths include workforce expansion and high housing affordability, which enhance livability and consumer purchasing power. However, risks are emerging in the housing sector, with a dramatic 37.55% drop in building permits and a slight market slowdown. The city's low office worker ratio underscores a structural reliance on non-professional service sectors, limiting high-end job formation. Near-term growth will depend on whether labor demand can sustain wage gains amid cooling housing activity.