Texas' service economy is still chugging along, and Dallas-area employers are feeling the heat on the hiring front. A new survey from the Dallas Fed shows revenue and wages climbing in July, even as hiring pulled back a bit from the previous month. The upshot for many local firms: they are paying more and searching harder for workers instead of trimming staff.
According to the Federal Reserve Bank of Dallas, the July revenue index barely budged at 9.5, while the current employment index slipped to 2.6 from 8.1 in June. The wages and benefits index held close to 15.7. The survey gathered responses from 241 firms between July 14 and last Wednesday, and its six-month outlook points to stronger hiring ahead: the future employment index climbed to 22.4, signaling plans to add staff. These figures appeared in the Dallas Fed's release today.
On the ground, local coverage is telling the same story. As reported by WFAA, businesses ranging from restaurants to logistics outfits say they are still struggling to fill open roles. Many are turning to staffing agencies or dangling higher pay to compete. The station also noted that the strain looks different across Texas metros: seasonal hiring gives some hospitality players a bit of breathing room, while professional services firms are getting jammed up by more specialized recruiting challenges.
What businesses are saying
Survey comments show companies leaning harder on recruiters and temporary staff as the race for workers tightens. "Many companies have been asking for help because they can't find the right talent on their own," one respondent said, according to the Federal Reserve Bank of Dallas. Firms highlighted openings in accounting, finance, sales, client service and operations, suggesting that hiring pressure reaches well beyond front-line or purely entry-level service positions.
Why wages are rising - and what it means
The latest numbers indicate hiring cooled a bit after a burst in June, but firm readings on the future employment and wages indexes still point to solid demand that is likely to keep nudging pay upward. Employers that cannot bring people in the door are offering higher compensation or outsourcing more of their recruiting, which adds to costs, especially for smaller operators. For workers, that translates into more job postings and a little extra leverage on pay in the industries flagged by survey respondents.
The Dallas Fed's monthly snapshot will not settle the big-picture debate about the economy, but it does offer a close-up of how Texas firms are managing steady sales, price pressures and a tight labor pool at the same time. The next Texas Service Sector Outlook Survey is scheduled for release on Sept. 1 and will show whether businesses follow through on those hiring plans.
