Texas has shattered employment records yet again, with the state’s total nonfarm jobs hitting an unprecedented 14,333,800 in July 2025 — the sixth consecutive month of record-breaking job numbers in the Lone Star State.
The milestone comes as Texas continues to outpace national job growth rates, adding 232,500 jobs over the past year and maintaining a steady 4.0% unemployment rate. The state’s civilian labor force swelled to nearly 15.85 million people, according to data released by the Texas Workforce Commission.
Governor Greg Abbott was quick to celebrate the achievement. “Texas continues to see sustained job growth thanks to having the best business climate in America and the productivity of hardworking Texans,” Abbott stated in a press release. “With more Texans working than ever before, we must ensure Texans across our great state have access to the tools and training needed to secure better jobs and bigger paychecks.”
Growth Despite June Stumble
The record numbers are particularly notable coming after an unexpected dip in June, when the state lost 15,500 jobs — the first monthly decline in a year. That temporary setback was largely attributed to cuts in the oil and gas sector, as well as professional business services.
“Employment fell in June for the first time in a year,” observed Jesus Cañas, Dallas Fed senior business economist. “With the slowing, job growth in the first half of 2025 now stands at 1.8 percent, just below its long-term trend of 2.0 percent.”
Despite the June hiccup, the Dallas Fed projects Texas jobs will increase by 1.7% overall in 2025, adding about 244,600 positions by year’s end. That would push total employment to approximately 14.5 million by December.
What’s behind this resilience? The Private Education and Health Services industry led July’s recovery, contributing 6,900 new jobs, while Leisure and Hospitality added 3,000 positions, according to workforce data. Construction has been another bright spot, growing 2.4% over the year — outperforming the national rate by nearly a full percentage point.
Clouds on the Horizon?
But it’s not all clear skies ahead. The Texas economy has shown signs of softening, with some economists expressing concern about the second half of 2025. Businesses across the state have reported challenges that could dampen future growth.
“Tariff uncertainty has substantially impacted the 2025 business outlook,” said one chemical manufacturer in a Dallas Fed survey. Immigration policies have also emerged as a concern for employers struggling to fill positions.
“Foreign-born laborers get the work done. We need them, we use them, and we like them,” remarked a machine manufacturer in the same survey, highlighting the complex interplay between labor markets and policy decisions.
Still, TWC Chairman Bryan Daniel remains optimistic. “The increase in the civilian labor force and the drop in the unemployment rate highlight continued strength in the Texas economy,” Daniel commented following the release of July’s figures.
Investing in the Future
The Abbott administration appears to be taking steps to sustain the growth trajectory. The governor recently announced over $1.6 million in Jobs and Education for Texans (JET) grants targeted at supporting career and technical education programs in South Texas.
“I signed laws this year to expand career training programs for Texans,” Abbott noted. “Working together, we will build a stronger, more prosperous Texas for all.”
As summer turns to fall, the question remains whether Texas can maintain its employment momentum amid economic headwinds. For now, at least, the state’s labor market continues to flex its muscles — setting records that even a June stumble couldn’t derail.
