Texas Leads the Nation in Annual Job Creation
Austin, Saturday, 22 August 2026.
Texas added 165,600 jobs between July 2025 and July 2026, leading the nation in employment growth and outpacing the national annual expansion rate by a full percentage point.
Private Sector Drives Gains Amid Energy Slump
While the state achieved significant overall employment growth, sector-specific performance varied considerably during the reporting period. The Private Education and Health Services industry recorded the largest over-the-month increase in July 2026, adding 5,900 jobs [2]. Professional and Business Services followed with 3,600 new positions, while Leisure and Hospitality contributed an additional 3,400 jobs [2]. Combined, these three sectors accounted for 12900 new jobs in July 2026 alone [2]. Conversely, the Financial Activities sector recorded losses of 5,100 jobs, and Construction decreased by 3,400 positions during the same month [1]. The oil and natural gas industry also reported 1,200 job losses, comprising 300 in extraction and 900 in the service sector [4].
Private Sector Drives Gains Amid Energy Slump
Upstream employment trends indicated a weakening trajectory following a peak in May 2026. Texas upstream oil and natural gas employment reached 197,300 jobs in May 2026 before declining over two consecutive months [4]. By July 2026, total upstream employment settled at 195,800 jobs [4]. Despite these recent monthly declines, year-to-date upstream employment remained up 3,400 jobs from the January 2026 starting point [4]. Industry representatives noted that elevated but volatile oil prices connected to geopolitical conflicts influenced hiring patterns [4].
Labor Force Dynamics and Unemployment Rates
The seasonally adjusted unemployment rate in Texas registered at 4.5% in July 2026 [1]. This figure compares to a national unemployment rate of 4.4% for the same period [2]. The state’s civilian labor force grew by 10,800 people in July 2026, reaching a total of 15,915,600 [2]. Over the 12-month period from July 2025 to July 2026, the Texas labor force increased by 17,800 people [5]. Nonfarm jobs in the state totaled 14,468,000 after the gain of 165,600 jobs over the year [5].
Labor Force Dynamics and Unemployment Rates
Regional disparities in unemployment rates were evident across Metropolitan Statistical Areas. Midland reported the lowest unemployment rate at 3.4% in July 2026 [2]. San Angelo followed at 3.8%, and Abilene recorded 3.9% [2]. In contrast, Eagle Pass reported the highest rate at 8.3%, while Brownsville-Harlingen reached 7.0% [3]. The Dallas-Fort Worth-Arlington area registered 4.6%, and Austin-Round Rock-San Marcos stood at 4.0% [2].
Policy Priorities and Economic Outlook
State officials linked the economic resilience to existing policy frameworks and outlined future priorities. Comptroller Don Huffines stated that meaningful property tax relief would lower the cost of housing and allow Texans to keep more of their money [1]. Governor Greg Abbott emphasized that the state’s skilled workforce and business climate give job creators confidence to invest [5]. The Texas Workforce Commission highlighted programs like the ASCEND grant and Skills for Success program to align workforce development with private sector needs [2].
Policy Priorities and Economic Outlook
Long-term economic milestones underscore the state’s growth trajectory since 2015. Texas has added more than 2.6 million jobs and expanded from the 12th to the 8th largest economy compared to nations of the world [5]. The state currently hosts 57 Fortune 500 headquarters and over 3.5 million small businesses [5]. Looking ahead, the Texas Labor Market Information Data for August 2026 is scheduled for release on Friday, September 18, 2026 [2].
Sources
- www.einpresswire.com
- www.twc.texas.gov
- www.thecentersquare.com
- texasborderbusiness.com
- gov.texas.gov