Texas Shatters Employment Records,Leads Nation in Job Growth
Table of Contents
Published:
economy,labor force,unemployment rate,oil and gas industry">
health services, and the robust oil and gas industry.">
AUSTIN,Texas – The Texas economy is continuing its record-breaking streak,achieving unprecedented milestones in employment figures. January 2025 data, released by the Texas Workforce Commission (TWC), reveals that Texas has surpassed previous records in total jobs, the number of working Texans, and the overall size of its labor force. This sustained growth underscores the state’s economic vitality and its attractiveness to businesses and workers alike. The Lone Star State’s labor market reached new heights in January, boasting a total of 14,236,400 nonfarm jobs.
This figure represents a significant increase of 187,700 jobs compared to January 2024, translating to an annual nonfarm growth rate of 1.3 percent. The civilian labor force also reached a record high, with 15,750,800 people employed in Texas, marking 55 months of growth out of the last 57. The consistent expansion of the labor force highlights the state’s ability to attract and retain a skilled workforce, further fueling economic advancement.
Gov. Greg Abbott lauded the state’s economic performance, stating:
Hardworking Texans drive America’s most dynamic economy, and with more Texans working than ever before in the history of our great state, we continue to dominate the nation for business expansion. Texas truly is the land of economic freedom, where entrepreneurs and business owners can cast a vision and no they can achieve that vision. With the Best Business Climate and the strongest workforce in America, texas attracts innovative industry leaders seeking the freedom to grow and the prospect for their employees to thrive. By cutting red tape and making strategic investments in infrastructure, education, and workforce development, we will build a stronger, more prosperous Texas than ever before.
Gov. Greg Abbott
The number of employed Texans, including the self-employed, also reached a historic peak of 15,103,300 in January, further solidifying the state’s position as a national leader in job creation. This milestone reflects the success of policies aimed at fostering a business-amiable environment and attracting investment, contributing to a thriving economy for residents.
Sector Spotlight: Key Industries Driving Growth
Several industries contributed significantly to the state’s employment surge. The Private Education and Health Services sector led the way, adding 9,700 jobs in January. Professional and Business Services followed with an increase of 3,700 jobs, while Mining and Logging experienced a gain of 2,300 jobs. The diverse range of sectors experiencing growth underscores the breadth and resilience of the Texas economy.
TWC Commissioner Representing Employers Joe Esparza emphasized the state’s appeal to businesses across diverse sectors, stating:
Texas continues to attract new and expanding businesses across a wide range of industries.We encourage employers to explore TWC programs like the Skills Development Fund, so they can develop their workforce to compete in a global market.
Joe Esparza, TWC Commissioner Representing Employers
TWC Commissioner Representing Labor Alberto Treviño III highlighted the various programs available at the TWC to address the diverse needs of job seekers, ensuring that Texans have access to the resources and training necessary to succeed in the evolving job market. These programs play a crucial role in equipping individuals with the skills and knowledge required to thrive in a competitive workforce.
Oil and Gas Industry Fuels Economic Engine
The Texas upstream oil and natural gas industry also played a crucial role in the state’s economic success, adding 2,500 jobs in January. This brought the total number of jobs in the sector to nearly 201,000. This sector encompasses oil and natural gas extraction and some mining activities. It’s crucial to note that this figure excludes refining, petrochemicals, fuels wholesaling, oilfield equipment manufacturing, pipelines, and gas utilities, which collectively support hundreds of thousands of additional jobs throughout the state.
Todd Staples, President of the Texas Oil and Gas Association, emphasized the industry’s vital role in energy security, stating:
As geopolitical circumstances continue to evolve and domestic policy is being examined, the Texas oil and natural gas industry started the year off with positive job growth, which is a reminder of the critically important role played by this critical industry in providing energy security across the globe.
Todd Staples,President of the Texas Oil and Gas Association
As the COVID-era low point of September 2020,the texas upstream oil and gas industry has added 46,400 jobs,averaging a growth of 892 jobs per month.Months with upstream oil and gas employment increases outnumbered those with decreases by a ratio of 37 to 14, according to TXOGA data. This consistent growth underscores the industry’s resilience and its continued importance to the Texas economy.
Unemployment Rate Below National average
Texas’s not seasonally adjusted unemployment rate stood at 4.1% in January, marking one of the few times in recent history that it has fallen below the national rate of 4.4%. This further underscores the strength of the Texas labor market and its ability to provide employment opportunities for its residents. The state’s ability to maintain a lower unemployment rate than the national average is a testament to its robust economy and attractive business climate.
The Midland Metropolitan Statistical Area reported the lowest not seasonally adjusted unemployment rate in the state at 3%, followed by amarillo at 3.1% and San Angelo at 3.3%. Eagle Pass reported the highest unemployment rate at 8.7%, followed by McAllen-Edinburg-Mission at 6.2%, and Beaumont-Port Arthur and Brownsville-Harlingen, both reporting 5.4%. These regional disparities highlight the importance of targeted economic development initiatives to address specific challenges in different parts of the state.
Texas’s Economic Boom: Unpacking the Lone Star State’s Job Growth Miracle
Is Texas’s economic success a sustainable model for other states looking to boost job creation and attract businesses?
Interview with Dr. Amelia Hernandez, Chief economist at the Center for Texas Economic Studies
World-Today-News (WTN): Dr. Hernandez, thank you for joining us today. Texas is experiencing an unprecedented period of job growth, shattering previous employment records.What are the key factors driving this remarkable economic expansion?
Dr. Hernandez: It’s a pleasure to be here. Texas’s economic success is multifaceted, stemming from a confluence of factors that position the state favorably compared to others. A key element is its business-friendly regulatory habitat. Texas keeps taxes relatively low,minimizes bureaucratic hurdles,and fosters a culture of entrepreneurship. This attracts businesses seeking lower operating costs and a streamlined path to market entry, contributing substantially to job creation across various sectors.
WTN: The article highlights several key sectors,particularly Private Education and Health Services,Professional and Business Services,and the oil and gas industry. How critically important is the contribution of each of these sectors to the overall job growth?
Dr. Hernandez: The diversification across several industries is a strength for Texas. While the oil and gas industry remains a significant player in the state’s economy, it’s no longer the sole driver. The growth in professional and business services reflects the state’s attractiveness to corporate headquarters and technologically advanced industries. The robust expansion in the private education and health services sector demonstrates a rising demand for qualified personnel within a growing population and an evolving healthcare landscape. This diversification is crucial for long-term economic stability, shielding the state from over-reliance on any single industry.
WTN: The article mentions the state’s unemployment rate falling below the national average. What does this indicate about the health of the Texas labor market?
Dr. Hernandez: A low unemployment rate, coupled with robust job growth, indicates a strong and healthy labor market. It suggests that Texas is not only creating jobs but also providing sufficient opportunities for its residents to secure employment, positively impacting wage growth and overall economic well-being. A low unemployment rate is a clear signal of economic strength. Though, it’s critically important to analyze the rate across different regions within the state, as certain areas may experience higher unemployment than others.This data allows for the targeting of specific economic development initiatives and better allocation of resources.
WTN: Governor Abbott attributes the success to Texas’s “economic freedom.” How can this concept be defined in the context of the state’s economic policies?
Dr. Hernandez: “Economic freedom” in Texas is reflected in a combination of factors: minimal government intervention, a competitive tax structure, deregulation, and a focus on infrastructure development that supports business growth. Policies that prioritize deregulation and reduce administrative burdens promote efficiency and attract investment.Similarly, strategically investing in infrastructure, such as transportation networks and energy grids, creates a foundation for economic expansion. These actions all together help to create a favorable environment for businesses to innovate, expand, and create new job opportunities.
WTN: what challenges and potential risks—economic, social, and environmental—should Texas policymakers consider as the state navigates this sustained economic growth?
Dr. Hernandez: Even with this remarkable success, challenges remain. Addressing income inequality, despite overall economic growth, is critically critically important. The rapid development needs to be balanced with sustainable practices to mitigate environmental concerns. Additionally, focusing on workforce development and training—especially in sectors experiencing the fastest growth—is vital to ensure Texans are equipped for the future job market. Proactive investment in education and training programs will keep Texas competitive in attracting and retaining a skilled labor force.
WTN: What are your final thoughts on the future of Texas’s economy, given its current trajectory?
Dr. Hernandez: Texas has set a powerful example for other states through its strategic economic choices and commitment to a favorable business climate.If policymakers continue to foster a balance between economic growth, environmental sustainability, and social equity, the Lone Star State is poised for continued economic prosperity.Though, continuous evaluation and adaptation of policies are vital for navigating an ever-changing global landscape.
WTN: Thank you, Dr. Hernandez, for this insightful analysis. It’s clear that Texas’ notable economic expansion is a result of multi-faceted approaches and careful policy planning. We encourage our readers to comment below and to share your thoughts on social media using #texaseconomy.
TexasS Economic Engine: Is the Lone Star State’s Boom a Replicable Model?
Is Texas’s economic success a sustainable model for other states, or is it a unique phenomenon unlikely to be replicated elsewhere?
World-Today-News (WTN): Dr. Hernandez, thank you for joining us. Texas’s job growth is remarkable. What are the key drivers of this sustained economic expansion?
dr. Hernandez: The Lone Star State’s economic success isn’t a single element; it’s a confluence of factors. A key component is its business-kind regulatory environment. Texas maintains relatively low taxes, streamlines bureaucratic processes, adn cultivates a culture that encourages entrepreneurship. This makes it appealing to businesses seeking lower operating costs and easier market access, directly leading to job creation across numerous sectors.
WTN: The recent employment figures highlight several key sectors: private Education and health Services, Professional and Business services, and the oil and gas industry. How crucial is each to the overall job growth picture?
Dr. Hernandez: Texas’s economic strength lies in its diversification. While the oil and gas industry remains undeniably significant, its influence isn’t singular.The expansion of professional and business services reflects Texas’s increasing attractiveness as a hub for corporate headquarters and technologically advanced firms. The growth