Texas workers saw slower wage growth in October compared to earlier in the year, even as growth in the state remained just slightly above the national average, according to a report from the ADP Research Institute released Wednesday.
Texas started 2023 with a median pay growth around 7.6% year-over-year in January and February. That dropped to 5.8% growth last month.
“It is consistent with what we're seeing in other states,” ADP Chief Economist Nela Richardson said on a Wednesday conference call. “Strong hiring, yes, but strong hiring that comes with a slower pay boost than we saw at the beginning of the year."
The national average of pay growth for workers who stayed with their employers slowed to 5.7% in October, the slowest pace of growth seen since October 2021.
Richardson said pay growth is slowing across the board in different sectors, hovering between a 5% and 7% decrease.
"We expect the slowdown to continue in year-over-year growth," Richardson said. "That being said, it's up higher than it was before the pandemic. So this is a relative slowdown, but it's meaningful in the sense that last year pay growth just moved sideways but we're now seeing consistent declines."
While pay growth may be slowing, job growth appears to remain strong in Texas. According to the September jobs report from the Texas Workforce Commission, Texas exceeded 14 million jobs for the first time ever.
That report noted employment in nine of 11 major industries expanded, led by the trade, transportation and utility industries.
“Texas has achieved growth across all major private industries by fostering a business environment that enables Texas employers, large and small, to thrive, grow and succeed,” said TWC Commissioner Representing Employers Aaron Demerson.
The TWC jobs report for October is expected later this month.
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