Texas is widening its lead in the nation’s job race, adding a whopping 168,000 positions over the past 12 months — more than any other state. The Lone Star State’s economy continues its remarkable expansion, pushing to new records in both labor force participation and overall employment as of September 2025.
“Texas is where free enterprise flourishes and jobs grow,” proclaimed Governor Greg Abbott, highlighting the state’s ongoing economic momentum. “That is why Texas leads all states with the largest 12-month jobs gain in the nation. From innovative startups to Fortune 500 corporations, job-creating businesses invest with confidence in Texas.”
Breaking Records Across the Board
The September employment figures paint a picture of robust growth. Texas reached an unprecedented civilian labor force of 15,879,000 and saw total employment — including self-employed Texans — climb to 15,222,900. The state’s nonfarm jobs tally increased to 14,343,800 after adding 4,600 positions for the month.
What’s driving this persistent growth? The construction industry led September’s private sector expansion with 4,300 new jobs, while leisure and hospitality posted the highest annual growth rate among major industries at an impressive 2.2%. Trade, transportation, and utilities sectors also registered positive gains.
Perhaps most telling is how Texas continues to outperform national averages. The state maintained its 4.1% unemployment rate — comfortably below the national rate of 4.4% — while achieving job growth at 1.2% annually, exceeding the U.S. rate by 0.4 percentage points.
Growth Patterns Show Acceleration
Recent months suggest the Texas job machine might be picking up steam. “Employment growth accelerated in August, bringing year-to-date job growth to 1.2 percent, which is still below Texas’ long-term trend of 2.0 percent,” noted Luis Torres, Dallas Fed senior business economist. However, he cautioned that “seasonal factors related to the beginning of the school year could be affecting the August numbers. One or two more months of data may be needed to confirm that a reacceleration of job growth has occurred.”
Looking ahead, the picture remains optimistic. The Dallas Fed forecasts Texas job growth of 1.3% for 2025, which would translate to approximately 180,400 new jobs by year’s end.
Investing in the Workforce
Is Texas resting on its laurels? Hardly. The state is actively investing in its workforce pipeline. Governor Abbott recently announced over $14 million in Jobs and Education for Texans (JET) training grants for higher education institutions and school districts, specifically targeting career and technical education programs. An additional $1 million in dual credit grants aims to prepare students for high-demand occupations.
“With our strong and growing workforce, we will continue to expand career and technical training programs for better jobs and bigger paycheck opportunities for more Texans,” Abbott emphasized.
The state’s labor market expansion comes at a time when many other regions are experiencing cooling job markets. Texas’ broad-based growth across multiple sectors suggests a resilience that has become characteristic of the state’s economy in recent years.
As companies continue their exodus from higher-tax, higher-regulation states, Texas seems positioned to maintain its job creation leadership well into the future — though economists will be watching closely to see if the pace can sustain itself amid broader national economic uncertainties.
