Dallas-Fort Worth Employment Update. First Signs of Stabilization, and Wages Decelerate

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Dallas-Fort Worth Dallas Market Update May 2026 by Amy Linn, PrideStaff Strategic Partner, Dallas skyline background

In my last update, I told you Dallas-Fort Worth’s job growth had hit its lowest point since 2021. The U.S. Bureau of Labor Statistics has now released updated metro employment and unemployment data through February 2026 (published April 29, 2026), the May 1, 2026 release on changing compensation costs through March 2026, and the latest sector breakdown in the Dallas-Fort Worth Area Economic Summary updated April 16, 2026. After months of writing about deceleration, this is the first in a while that points in the other direction.

The January 2026 reading came in at 41,900 jobs year-over-year, a 1.0 percent gain and a meaningful rebound from December’s 14,200, 0.3 percent. The February 2026 reading pulled back to 24,200 jobs, 0.6 percent, still well above the late-2025 low. Two consecutive readings pointing in the right direction is encouraging, and I want to see one more month before I call this a real turn, but it is positive.

The Trend

Here is where this market sits across the last year of releases I have tracked:

Month Published Data Period YoY Jobs Added Growth Rate
March 2025 Jan 2025 YoY 56,100 1.3%
May 2025 Mar 2025 YoY 46,800 1.1%
August 2025 Jun 2025 YoY 43,600 1.0%
September 2025 Jul 2025 YoY 43,300 1.0%
February 2026 Nov 2025 YoY 18,500 0.4%
April 2026 Dec 2025 YoY 14,200 0.3%
May 2026 Jan 2026 YoY 41,900 1.0%
May 2026 Feb 2026 YoY 24,200 0.6%

Source: U.S. Bureau of Labor Statistics, Dallas-Fort Worth Area Economic Summaries and Metropolitan Area Employment releases, various release dates.

Where the Jobs Are, and Where They Aren’t

The most recent full sector breakdown for Dallas-Fort Worth is from the January 2026 data published in the BLS Area Economic Summary. It shows broader sector participation than we have seen in recent updates. Mining, Logging, and Construction led with a 4.4 percent gain, adding 11,100 jobs. Professional & Business Services, which had been shedding positions all year, posted positive 12,500 jobs and 1.6 percent growth.

Sector Jobs Change (YoY) % Change
Mining, Logging, and Construction +11,100 +4.4%
Professional & Business Services +12,500 +1.6%
Government +7,700 +1.6%
Leisure & Hospitality +6,400 +1.5%
Education & Health Services +6,700 +1.3%
Other Services +1,400 +1.0%
Financial Activities +1,700 +0.4%
Trade, Transportation, and Utilities -2,100 -0.2%
Manufacturing -2,100 -0.7%
Information -1,400 -1.6%

Source: U.S. Bureau of Labor Statistics, Current Employment Statistics

On the soft side, Information continues to contract, down 1.6 percent. Manufacturing remains in mild decline. Trade, Transportation, and Utilities slipped by 2,100 jobs. The contractions are smaller than what we saw in late 2025, but they have not gone away.

Unemployment Across the Metro

As job creation ticked back up, the unemployment rate held steady. Dallas-Fort Worth’s rate was 4.1 percent in February 2026, unchanged from a year earlier. We continue to track well under the U.S. rate of 4.7 percent (also February 2026, not seasonally adjusted).

County-level rates from the most recent Area Economic Summary (January 2026) show where the tightness sits across the metro:

County Jan 2025 Jan 2026
Denton Co. 3.7% 4.0%
Collin Co. 3.8% 4.2%
Tarrant Co. 3.9% 4.2%
Dallas Co. 4.0% 4.3%

Source: U.S. Bureau of Labor Statistics, Local Area Unemployment Statistics

And looking at the most recent comparable period at the metropolitan division level (February 2026, not seasonally adjusted):

Metropolitan Division Feb 2025 Feb 2026
Dallas-Plano-Irving 4.1% 4.2%
Fort Worth-Arlington-Grapevine 4.0% 4.1%

Source: U.S. Bureau of Labor Statistics, Local Area Unemployment Statistics, Metropolitan Areas

Denton County remains the tightest sub-market at 4.0 percent. Dallas County offers the most candidate availability at 4.3 percent. The Fort Worth-Arlington-Grapevine division continues to run slightly tighter than Dallas-Plano-Irving, 4.1 versus 4.2 percent in February 2026, so if you have flexibility on where you source candidates, the Fort Worth-Arlington corridor still offers marginally less competition for the same profiles.

Compensation Costs Have Decelerated Sharply

This is the section I most want every Dallas-Fort Worth employer to read. On May 1, 2026, the BLS released the latest Employment Cost Index data for the Dallas metropolitan area. Compensation costs for private industry workers in DFW rose 2.3 percent for the year ending March 2026. A year ago, that number was 4.4 percent. Wages and salaries alone rose just 1.8 percent in DFW, compared to 3.4 percent nationally.

12-month change Mar 2025 (prior year) Mar 2026 (current)
Total compensation +4.4% +2.3%
Wages and salaries n/a +1.8%

Source: U.S. Bureau of Labor Statistics, Employment Cost Index for the Dallas Metropolitan Area, March 2026.

Among the 15 largest U.S. metros tracked, only Houston posted slower compensation cost growth than Dallas. That is a shift in this market’s competitive dynamics.

How Dallas-Area Employers Can Act on This Data

Three things to think about as you plan the next two quarters:

  • Wage compression is giving you room to operate. DFW wages and salaries grew 1.8 percent versus 3.4 percent nationally. If you postponed hires last year on cost concerns, the market has loosened. The same role often costs less to fill today than it did 12 months ago.
  • Watch the Professional & Business Services flip. This sector swung from heavy losses to modest growth in one release. If you are hiring credentialed accounting, finance, or administrative professionals, the candidate pool that opened over the past year is still in motion. Move on the candidates you want before the window closes.
  • Geographic strategy still matters, just less than it did. County-level rates have compressed into a tighter band (4.0 to 4.3 percent). You still get marginally more candidate availability in Dallas County than in Denton, and the Fort Worth corridor remains slightly less competitive than the Dallas side, but the gaps are smaller than they were in 2025.

How PrideStaff Dallas Can Help You Navigate This Market

This is the most positive read on Dallas-Fort Worth employment I have shared in months, paired with a sharp easing in wage pressure. Together, those two shifts create a real planning window for employers. Whether you are filling roles you held off on last year or evaluating where to put your next dollar of headcount, this is the kind of moment where the right partner makes the difference.

With over 25 years in the Dallas market, we have seen nearly all types of employment markets. We are ready to help you take advantage of this one.

Is the easing in wage pressure changing how you think about hiring or compensation planning this year?

Amy Linn
PrideStaff Dallas Strategic Partner
alinn@pridestaff.com
(972) 661.1616

Subscribe to Amy’s monthly Dallas Market Updates on LinkedIn.

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