According to a report released by the North Carolina-based bank Truist, the Dallas-Fort Worth region saw the highest year-over-year job growth rate in the U.S. Moreover, its unemployment rate dropped to 3.4% in April 2023, 8.5% less than in April 2020.
To provide a comprehensive report on the economic conditions of North Central Texas, the report analyzed data related to employment change as well as unemployment, inflation rate, population change and revenues earned by the 24 Fortune 500 companies that have headquarters located in the region.
According to the study, the Dallas-Fort Worth area is home to the 4th largest concentration of Fortune 500 companies in the U.S. with 24 of them calling the region home — two of which are among the top 10 Fortune 500. The revenues generated by these companies totaled over $1.3 trillion in 2022, the second-highest total among metros. As the report explains, attracting and retaining the HQs of big businesses serves as a proxy indicator of the quality of life and high-paying job rates for the region.
In addition to attracting companies, Dallas-Fort Worth draws people. The report analyzed the population change in the area since 1970 and found that one million new residents moved in every 10 years since 1980. In 2022 alone, Dallas-Fort Worth welcomed 170,000 newcomers, representing 36% of the population growth in Texas and making Dallas the leading metro area in population growth in the country.
Regarding inflation rates, the report found that, while the region still outpaced the national average of 5.3% by 1.7%, the area has seen five consecutive periods of declining inflation. Even with a slight increase in the inflation rate for all the items considered for the consumer price index (CPI), the overall inflation continues to trend downward. This declining trend is explained partly by the fall in energy prices that in May 2023 were at -17%, well below the national average.
At the same time inflation rates continue to drop, consumer spending has gone up considerably, exceeding pre-pandemic levels in April 2023. Restaurants and hotels, one of the most affected section of the economy during the pandemic, climbed back to pre-pandemic levels in conjunction with vaccine distribution in March 2021, and by April 2023, spending in this segment went up 5% to 8% in the area.
