Texas has cemented its position as America’s job creation powerhouse, adding more new jobs than any other state in 2025 and outpacing the national growth rate by half a percentage point, according to new employment data.
The Lone Star State gained 132,500 jobs from December 2024 to December 2025, pushing the state to new employment records across multiple metrics. This robust job growth comes at a time when many states are still navigating economic uncertainty.
Texas’ labor force has now reached an unprecedented 15,964,000 workers — the largest in state history. The number of employed Texans, including the self-employed, also hit a record high at 15,283,600.
Growth Across Multiple Metrics
December proved particularly strong, with the state adding 19,700 nonfarm positions in that month alone, bringing the total to 14,341,000 jobs. This follows a November that saw an additional 7,300 nonfarm jobs, reflecting consistent month-over-month growth.
The unemployment rate in Texas stands at 4.3%, comfortably below the national average of 4.4%. Governor Abbott was quick to attribute this success to the state’s business-friendly environment, stating, “Texas is America’s jobs leader because Texas is where free enterprise flourishes and where hard work is rewarded. That is why Texas tops all states for business relocations and expansions.”
What’s driving this growth? The state continues to attract major employers while supporting small business development. Additionally, Texas had 600,000 job openings in August 2025, up from 566,000 in July, according to data from the U.S. Bureau of Labor Statistics.
The Austin metropolitan area has been a particular bright spot, contributing 18,500 jobs (a 1.4% increase) from May 2024 to May 2025, landing the capital region in the top 10 for year-over-year job growth among major U.S. metros.
Challenges Beneath the Surface
Yet the picture isn’t entirely rosy. The Dallas Federal Reserve notes that year-to-date job growth through September 2025 was 0.9 percent — well below the state’s long-term trend of 2.0 percent. In fact, Texas employment actually fell by an annualized 1.1 percent in September, shedding 12,700 jobs.
Still, the overall trajectory remains positive. The Texas civilian labor force expanded by 59,500 people between September and November 2025, with an impressive over-the-year addition of 206,800 workers.
Economic forecasters remain cautiously optimistic. The Dallas Fed predicts Texas employment will increase by 0.9 percent in 2025, projecting 125,400 jobs will be added this year with total employment reaching 14.4 million by December.
For job seekers, the data suggests Texas remains a land of opportunity despite national economic headwinds. The state’s 1.0 percent annual nonfarm growth rate continues to outpace the national rate by 0.4 percentage points — a gap that gives Texas a significant competitive advantage in attracting both businesses and workers.
As 2026 approaches, the question becomes whether Texas can sustain this momentum while addressing areas of slower growth. For now, the Lone Star State’s job market shines brighter than most.
