Texas continues to flex its economic muscle, adding 232,500 nonfarm jobs over the past year and cementing its position as the nation’s top job creator, according to new employment data released this week.
The Lone Star State’s job market expanded at a 1.6% annual rate through July 2025, outpacing the national growth rate by 0.6 percentage points. Total nonfarm employment reached a record high of 14,333,800 jobs after gaining 8,700 positions in July alone.
Growth Across Multiple Sectors
Seven of the state’s 11 major industries added jobs in July, with Trade, Transportation, and Utilities leading the charge by adding 5,500 positions. Professional and Business Services followed with 3,800 new jobs, while Construction contributed another 2,800 positions.
“Texas continues to be No. 1 as America’s jobs creator, proving that pro-business policies are pro-job policies,” Governor Greg Abbott stated in response to the numbers. “To ensure Texas continues to move at the speed of business, I signed laws this year to slash red tape, invest in infrastructure, and expand career training programs.”
The state’s civilian labor force now stands at a record 15,848,800, growing by 195,900 over the past year despite a slight monthly decline of 1,400 workers from June. Meanwhile, Texas’ unemployment rate held steady at 4.0%, remaining below the national rate of 4.4%.
What’s particularly notable about Texas’ construction industry? It grew by 3.2% year-over-year, outperforming the national construction sector by two full percentage points — a bright spot in an otherwise mixed economic landscape nationally.
Regional Variations and Future Outlook
Not all regions are sharing equally in the growth. Employment expansion has been strongest in Fort Worth, Austin, and San Antonio, while Houston actually lost jobs in recent months, according to Dallas Federal Reserve analysis.
The Texas Employment Forecast predicts jobs will increase 2.0% overall in 2025, suggesting approximately 279,600 jobs will be added by year-end. With an 80% confidence band of 1.5 to 2.5%, economists expect December employment to reach around 14.5 million.
Still, there are some signs of cooling in certain sectors. Texas upstream oil and gas employment declined by 1,400 positions in July to 205,200, with the services sector shedding 1,600 jobs while extraction operations added a modest 200 positions.
Despite this contraction, job demand in the energy sector remains robust. There were 8,853 active unique job postings for the Texas oil and natural gas industry last month, up from 8,457 in June, with 3,840 new postings emerging in July alone.
“Employers added 8,700 jobs in July, more than offsetting June’s small employment decline and pushing non-farm employment to a record high,” noted a state labor analyst. “Over the past year, Texas has gained 232,500 jobs, which outpaced the nation by six-tenths of a point.”
Economic Resilience
The continued job growth comes as the broader U.S. economy navigates uncertainty. Texas’ diversified economy — spanning energy, technology, healthcare, and manufacturing — appears to be providing a buffer against national economic headwinds.
Abbott attributes the state’s economic performance to what he calls “pro-business policies,” including deregulation efforts, infrastructure investments, and expanded career training programs. “When Texas businesses are free to succeed, jobs grow and Texans thrive,” the governor added.
For now, at least, the Lone Star State’s labor market continues to shine brighter than most — though economists will be watching closely to see if the growth trajectory can be maintained through year’s end, particularly in sectors showing early signs of contraction.
