El Paso Jobs Shrink 1.3% as Unemployment Ticks Down
September employment in El Paso fell on an annualized basis even as the jobless rate edged lower to 4.2 percent.
Updated on Nov. 2, 2026 in Employment
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El Paso employment fell an annualized 1.3 percent in September, following a 1.8 percent decline in August. The unemployment rate ticked down to 4.2 percent over the same month.
Why it matters
The continued job contraction in El Paso, paired with a shrinking labor force, reflects strain on the local workforce. The recent nationwide decline in international immigration has added pressure on the area's labor supply.
El Paso employment fell 1.3 percent annualized in September, compared with a 1.8 percent decline in August and a 1.6 percent drop statewide in Texas, while national employment grew 0.2 percent. The source does not identify a specific cause for the sector-wide declines beyond the labor-supply pressures noted.
The details
Employment declines were broad-based across sectors in El Paso, though manufacturing posted the fastest payroll growth from June to September at 5.2 percent. The labor force contracted an annualized 1.4 percent in September, and the three-month average of nominal hourly wages slipped to $25.17.
Timeline
August 2026: El Paso employment fell 1.8 percent annualized.
September 2026: Employment fell 1.3 percent and unemployment ticked down to 4.2 percent.
Third quarter 2026: Payroll employment fell 0.9 percent annualized.
Economic Trend
The El Paso employment decline follows the recent nationwide drop in international immigration, which has tightened the area's labor supply. Local job losses contrast with the modest national employment gain of 0.2 percent recorded in September.
With El Paso wages averaging $25.17 an hour and the labor force contracting, job seekers face a tighter market even as the jobless rate eased to 4.2 percent. Residents tracking household budgets should weigh slower payroll growth against the 7.2 percent year-over-year rise in median home prices to $288,000.
The takeaway
Watch whether El Paso's labor force stabilizes as immigration patterns shift, since a sustained contraction would keep pressure on wages and hiring. Job seekers and households should track monthly employment and wage releases to gauge local conditions.
Further reading
Track more local data in the El Paso Employment section.
Source note: This article includes information reported by Dallasfed.
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