Amarillo Economy Snapshot Points to Decisions on Jobs and Housing

Amarillo recorded an unemployment rate of 3.5 percent in May, up 0.4 percentage points from the prior year and tied mainly to shifts at Tyson Foods. Total employment stood at 96,902. Retail sales rose 18 percent from the same month a year earlier, while year-to-date sales increased 11 percent. Housing prices advanced 4 percent, and housing starts this month exceeded last year's count by 34, a 94 percent rise, coinciding with 30-year mortgage rates falling 50 basis points.

Employment and Revenue Figures

City budget data for 2024/2025 list sales tax revenues at $78.8 million and property tax revenues at $52.8 million. These totals sit alongside the regional trade area that exceeds 500,000 residents. The local economy draws on meatpacking that processes roughly 25 percent of U.S. beef, plus energy, manufacturing, logistics and aviation sectors.

Retail and Housing Patterns

New and used car sales declined slightly even as overall retail activity expanded. The 4 percent rise in housing prices and the jump in monthly housing starts occurred against the backdrop of lower mortgage rates. These trends appear in the same period that showed the 0.4 percentage point unemployment increase.

Choices Ahead for Local Stakeholders

City leaders and employers face decisions on how to address the employment changes linked to Tyson Foods while retail sales continue to expand. Officials may weigh steps to sustain the increase in housing starts and the 4 percent price growth already recorded. Business groups could examine ways to maintain the 18 percent year-over-year retail sales gain and the 11 percent year-to-date improvement. The 2024/2025 budget figures for sales and property taxes provide one reference point for revenue planning as these trends develop.