Report finds Austin had 'unusually high' mass layoffs during 2023

A December analysis from the Federal Reserve Bank of Dallas found the Austin metro saw an "unusually high level" of mass layoffs throughout most of 2023, particularly compared to larger metro regions like the Dallas-Fort Worth and Houston regions.

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AUSTIN (KXAN) — A December analysis from the Federal Reserve Bank of Dallas found the Austin metro saw an "unusually high level" of mass layoffs throughout most of 2023, particularly compared to larger metro regions like Dallas-Fort Worth and Houston.

Reporting from the Federal Reserve Bank of Dallas found there were 3,552 Worker Adjustment and Retraining Notification (WARN) layoffs in Austin from January to October 2023. WARN notices are a federal requirement that mandates employers notify state officials when there are impeding mass layoffs or facility closures.

"The notices can signal the shutdown of a job site of at least 50 workers, a layoff of a third of a location’s workforce involving fewer than 500 workers or outright dismissal of more than 500 employees," the Federal Reserve Bank of Dallas said.

In Austin, the Dallas Reserve's findings revealed Austin made up about 20% of the total number of WARN layoffs statewide during the first 10 months of 2023. Conversely, Austin's volume of WARN layoffs averaged around 5.7% of the state's total numbers between 2012 to 2019.

The Austin metro area makes up roughly 9.6% of state employment, per the Dallas reserve.

In its analysis, the Federal Reserve Bank of Dallas said the unusually high volume of WARN layoffs likely amounted from substantial downsizing within the tech sector, one of the city's primary employment areas.

Elsewhere in Texas, the San Antonio metro hit 13.9% of total WARN layoffs statewide, compared to a 5.5% average volume pre-pandemic. El Paso accounted for 0.3% of state levels, while Houston hit 2.2% of statewide amounts. The Dallas Reserve's analysis noted both of these areas have a lower concentration of high-tech industry jobs.

While the Dallas-Fort Worth metro is home to professional services and tech jobs, the Federal Reserve Bank of Dallas said the region hadn't undergone any mass layoffs during 2023, instead expanding its labor force by nearly 11% since December 2019.

Some fluctuations behind WARN layoff notices can come from "structural changes in an economy rather than cyclical ones," The Federal Reserve Bank of Dallas' analysis said. One factor that could account for changes is shrinking industry sizes due to technological advancements.

The Federal Reserve Bank of Dallas' complete report is available online.