
New data from the Texas Service Sector Outlook Survey (January 2026, Dallas Fed) highlights a reality we see every day at Metrocrest Services—and it helps explain why so many working families continue to struggle despite being employed.
Here are a few key takeaways—and why they matter for our community:
- Wages are rising slowly, while prices continue to rise faster.
This means workers’ paychecks simply aren’t keeping up with the cost of housing, food, healthcare, and childcare. Even small increases in income can be offset—sometimes entirely—by higher living expenses. - Part‑time employment is increasing.
Part‑time work often means lower wages, fewer employer benefits, and less stability. For many low‑wage workers, this creates unpredictable schedules and income, making it harder to plan, save, or move forward. - Service sector revenue grew—but not enough to support livable wages.
As earnings creep up, many workers face a painful reality known as the benefits cliff: they may lose critical supports like SNAP, healthcare coverage, or childcare assistance before their wages are high enough to replace them. - This impacts a huge portion of Texas families.
The service sector represents 73% of Texas private‑sector activity and employs more than 12 million workers. These trends directly affect housing stability, health outcomes, and financial security—key social determinants of health for low‑income households.
At Metrocrest Services, we work alongside neighbors navigating these exact challenges every day. This data helps explain why steady work doesn’t always lead to stability—and why compassionate, coordinated support remains essential.
Your support makes it possible for families to bridge gaps, avoid crisis, and move toward long‑term stability, even as broader economic pressures make progress harder.
Metrocrest Services is a non-partisan organization. The information provided is for general educational purposes only and should not be construed as legal, financial, or political advice. Metrocrest Services does not endorse any political party, candidate, or legislative position.
For additional information, please email [email protected] or call 972.446.2100.
Citations
Federal Reserve Bank of Dallas. (2026). Texas Service Sector Outlook Survey – January 2026. Retrieved from https://www.dallasfed.org/research/events/2026/26outlook
About the Author
Jo Beth Collier is the Director of Community Outreach and Advocacy for Metrocrest Services. She has a passion for bringing together nonprofits, corporations, government, and civic groups to find real-world solutions to the challenges faced by individuals living on the financial edge. Meaningful solutions start with shared learning. If you have questions, thoughts, or would like to engage more deeply with these types of topics, email [email protected].







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