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Texas Job Market Growth Surges

Texas Economic Growth

News Summary

Texas has experienced remarkable job growth, adding 232,500 new jobs over the past year. The total number of employed individuals has reached around 15.8 million, maintaining an unemployment rate of 4%. Despite facing challenges such as economic uncertainties and a dip in the construction sector, initiatives like the JET grants for technical education signify positive investment in the future workforce. With cities like Midland boasting an impressive 3% unemployment rate, the state’s economy continues to flourish, showcasing resilience and opportunity for all Texans.

Texas has set new records for total nonfarm jobs and the number of employed Texans, with remarkable growth seen in the past year, according to data from July. The state added 232,500 jobs over the last 12 months, substantially surpassing the annual job growth rate observed nationwide. This boost in employment reflects a positive business environment and the high productivity of Texas’ workforce.

As part of ongoing efforts to improve job opportunities, Governor Greg Abbott has emphasized the significance of training programs that equip Texans with the skills necessary to attain better jobs and increase their earning potential. To further support this initiative, the governor announced over $1.6 million in Jobs and Education for Texans (JET) grants, aimed at enhancing career and technical education in the South Texas region.

In addition to job growth, residents in Texas who have been affected by July floods have access to Disaster Unemployment Assistance (DUA). Applications for this assistance can be submitted online or via phone to the Texas Workforce Commission (TWC), with a deadline set for September 4, 2025.

Recent Job Market Trends

Despite the impressive annual growth statistics, a report from the Federal Reserve Bank of Dallas reveals a slowdown in job growth for June, attributing this trend to tariffs and broader economic uncertainties. While job creation remains robust, certain sectors are facing challenges. For example, construction activity in Texas is declining, with contract values falling nearly 30% since January 2025. The residential construction sector has reported a 7% decrease, and non-residential construction has experienced a reduction of 25%.

Despite these setbacks, the skilled labor shortage in Texas persists, though there is an increasing interest in trade programs as high-paying job opportunities continue to emerge. As of May, Texas reached a labor force total of 14.3 million, with an additional 28,100 jobs added in that month alone. The state’s unemployment rate held steady at 4.1%, which is slightly better than the national average of 4.2%.

Sector-Specific Growth

The job sectors experiencing the most significant growth in May included trade, transportation, and utilities, which added 8,400 positions, followed closely by the leisure and hospitality sector with 8,200 jobs created. Additionally, local areas such as San Antonio-New Braunfels saw the construction sector gain 1,000 jobs, while the government sector in the Austin region added 1,300 jobs.

Statewide, Texas’ civilian labor force grew to 15,850,100, marking an increase of 10,800 individuals over the previous month and 237,800 year-over-year. In June, the state recorded a seasonally adjusted unemployment rate of 4%, a slight decrease from May’s rate of 4.1%. Notably, Midland boasted the lowest unadjusted unemployment rate in the state at 3%, while the Eagle Pass metro area recorded the highest rate at 9.6%.

Background Context

Texas’ job growth trajectory has remained strong, with the labor force experiencing consistent increases in 59 of the last 61 months. This trend highlights the resilience of the Texas economy in the face of challenges such as construction declines and the ongoing skilled labor shortage. The state’s favorable business climate and educated workforce appear to be critical factors contributing to its robust job growth patterns.

As Texas continues to navigate both opportunities and challenges within its job market, the focus remains on fostering a skilled workforce capable of meeting the demands of a rapidly evolving economy.

Deeper Dive: News & Info About This Topic

STAFF HERE GEORGETOWN
Author: STAFF HERE GEORGETOWN

The GEORGETOWN STAFF WRITER represents the experienced team at HEREgeorgetown.com, your go-to source for actionable local news and information in Georgetown, Williamson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Red Poppy Festival, Georgetown Swirl, and Christmas Stroll. Our coverage extends to key organizations like the Georgetown Chamber of Commerce and the Downtown Georgetown Association, plus leading businesses in manufacturing and tourism that power the local economy such as local wineries and historic downtown shops. As part of the broader HERE network, including HEREaustin.com, HEREcollegestation.com, HEREdallas.com, HEREhouston.com, HEREgeorgetown.com, and HEREsanantonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

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