News Summary

Texas has reported impressive job growth with over 195,600 nonfarm jobs added, ahead of all other states. However, rising unemployment rates, particularly in the Austin metro area, raise concerns as job growth slows. Governor Abbott takes steps to streamline business regulations and invest in education, yet Austin’s job market struggles with the lowest growth in 15 years and a rising cost of living, leading to demographic shifts. The mixed signals present challenges for Texas’s economic future.

Texas Governor Greg Abbott Celebrates Record Job Growth Amid Rising Unemployment Rates

Texas has reported significant job growth, adding 195,600 nonfarm jobs over the past year, the highest number among all states. Governor Greg Abbott announced these figures while highlighting Texas as the nation’s leader in new employment opportunities and noting the state’s successful business environment. In August alone, Texas gained 17,600 new jobs, bringing the total number of nonfarm jobs in the state to 14,347,700.

Despite these commendable achievements, Texas is not without challenges as the unemployment rate climbed to 4.7% in August, an increase from 4.2% in July. The rise in unemployment was marked by significant spikes in claims for unemployment benefits in Bexar and Travis Counties, correlated with recent flooding events. For context, San Antonio’s unemployment rate also ticked up to 4.4%, while Austin’s rose to 3.9%.

Record Labor Force and Growth Plans

The labor force in Texas achieved a record high of 15,857,300, with 15,213,500 individuals employed, including self-employed workers. Abbott attributed the job growth to the state’s favorable business climate and a skilled workforce. He pledged to continue cutting bureaucratic obstacles and investing in initiatives that promote economic development.

To further this goal, the Governor appointed Jerome Greener as the Director of the Texas Regulatory Efficiency Office (TREO), an initiative aimed at reducing unnecessary regulations. Additionally, Abbott signed two bills into law to expand career and technical education, which are expected to create more qualified workers in the state.

Regional Job Growth Variations

While Texas as a whole displays robust growth, specific regions like the Austin metropolitan area have seen markedly slower job increases. From July 2024 to July 2025, only 9,600 new jobs were created in Austin, marking the area’s weakest job growth in the last 15 years. Austin’s job growth rate of 0.8% fell below the national growth rate for the first time since December 2003.

The leisure and hospitality sector led the job gains statewide in August, contributing to the overall growth with 10,900 new jobs added in that category alone. Despite this, job growth in Austin is expected to continue slowing, prompting demographic shifts in the region.

Concerns and Future Projections

Concerns are rising over the implications of a growing cost of living in Austin, which is increasingly affecting the city’s appeal to potential residents. Travis County has witnessed a shift in migration trends, with more people leaving than arriving. This shift is causing speculation about the sustainability of Austin’s growth rate, which has markedly reduced from previous years. If current trends persist, projections suggest a population of 5.2 million in Austin by the year 2060.

The statewide unemployment rate remained constant at 4.1% on a seasonally adjusted basis compared to a year ago, although significant variations exist across metropolitan areas—with the lowest rates reported in Amarillo, Midland, and San Angelo at 3.6%, and the highest being 8% in Eagle Pass.

In summary, Texas stands at a crossroads of impressive job growth yet faces emerging economic and demographic challenges. As the state continues to lead the nation in job creation, it must address the rising unemployment and the peculiarities of regional job performance to maintain its economic momentum.

Deeper Dive: News & Info About This Topic

• CoStar: Job Growth Continues to Cool in Austin, Texas
• Hoodline: Texas Surges Ahead in National Job Growth
• KVUE: Texas Record Job Growth
• Axios: Texas Job Growth Slows
• Wikipedia: Economy of Texas

Author: STAFF HERE GEORGETOWN

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