New Dallas Fed report charts growth, challenges in the Rio Grande Valley

News Releases

November 14, 2024

DALLAS-The Rio Grande Valley saw solid job growth in the third quarter and wage increases in the region have far outpaced Texas as a whole, according to the first edition of the Federal Reserve Bank of Dallas' economic indicators for the border area.

The publication aggregates data for one of the fastest growing regions in the country and presents an economic picture of the Rio Grande Valley along with its biggest metros Brownsville and McAllen.

The Dallas Fed publishes economic indicators for eight regions in the Eleventh District. The RGV report will make nine and is scheduled to be published quarterly.

"The RGV has been one of the fastest growing regions in the country," said Pia Orrenius, vice president and senior economist at the Dallas Fed. "Investment is flowing in, job opportunities are increasing and wages are quickly rising. We've added the area to our lineup of economic indicators to help bring attention to the valley's economy and its transformation. We are also tracking the challenges that come with such rapid growth, such as housing affordability and water availability."

Key indicators from the report published today include:

• Rio Grande Valley jobs increased an annualized 4.2 percent in the third quarter, driven mainly by government, education and health, and leisure and hospitality.
• Year-to-date employment grew 2.1 percent annualized in the Rio Grande Valley, slower than Texas (2.3 percent) but faster than the U.S. (1.3 percent).
• Private sector hourly wages in Brownsville ($21.01) increased 18.8 percent from one year ago. McAllen's average earnings of $21.55 per hour are up 3.4 percent.
• Water levels in Rio Grande Valley reservoirs held steady at 21 percent of storage capacity in early November which is 18 percentage points below the historical average.

Read the full report here: Rio Grande Valley Economic Indicators

Dallas Fed President Lorie Logan toured the RGV this summer. Read more about her visit here: How the Rio Grande Valley rallies for growth

To speak to a researcher about the new RGV economic indicator, reach out to:

Jon Prior
Federal Reserve Bank of Dallas
Phone: 214-922-6857
Email: [email protected]

Public link

Please use the above public link if you want to share this noodl on another website.