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Amarillo's Economy Diverges: Job Losses Clash With Construction Gains
Local job losses and rising unemployment stand in contrast to construction gains and national rankings as the city tracks performance seen in other midsize economies.
How we reported this
Amarillo recorded a year-over-year drop of 223 jobs in May while the broader Panhandle added 750 positions, driven primarily by data center construction outside city limits.
Why the Numbers Matter Now
The local unemployment rate climbed 0.4 percentage points to 3.5 percent, a shift tied mainly to layoffs at Tyson Foods. Retail sales rose 18 percent over the same period. These figures arrive as Amarillo ranks as the second fastest-growing midsize economy among the top 100 U.S. cities, fueled by data center construction, meatpacking, and renewable energy. Similar midsize cities worldwide often face comparable pressures from concentrated layoffs in food processing while construction activity elsewhere in their regions accelerates.
Construction and Revenue Details on the Ground
Building permits increased 118 percent over the last year and housing starts rose 94 percent, with home prices advancing 4 percent. Total city employment stands at 96,902. Sales tax revenues reached 78.8 million dollars and property tax revenues reached 52.8 million dollars for the 2024/2025 budget period. The region's economy rests on food processing that handles roughly 25 percent of U.S. beef, advanced manufacturing, renewable energy, and an expanding service sector. These sectors mirror patterns in other U.S. midsize hubs where industrial anchors buffer some service-sector softness.
Evidence from Recent Data
The 3.5 percent unemployment rate remains below Texas's 4.4 percent rate. Retail sales gains of 18 percent and the surge in construction activity provide concrete markers of consumer strength and building momentum. Amarillo's second-place ranking among midsize economies reflects the same combination of meatpacking scale and renewable energy growth observed in peer cities that have posted faster job gains from external projects.
City leaders will continue monitoring how data center work outside Amarillo and ongoing residential starts affect local employment counts in the months ahead. Residents and businesses can track updates through the Amarillo Economic Development Corporation and the city's budget reports for any shifts in tax revenue or permitting trends.