Texas Job Growth Outpaces US Despite September Decline

Texas added 154,300 nonfarm jobs over the past year, achieving an annual growth rate of 1.1% and outpacing the national rate by 0.8 percentage points. Greg Abbott, the Governor of Texas, attributed this growth to the state's business climate and recently awarded over $20 million in Jobs and Education for Texans (JET) grants to fund technical education equipment in schools.

Recent data reveals a divergence in short-term performance. The Texas Workforce Commission reported a loss of 11,100 jobs in September, while the Federal Reserve Bank of Dallas reported a steeper decline of 18,900 jobs for the same month. Despite these losses, the civilian labor force grew by 15,800 people in September, bringing the total workforce to over 15.9 million. The state's seasonally adjusted unemployment rate remained at 4.4%.

Sector performance varied, with professional and business services leading annual gains with 69,400 jobs, while the information industry saw the largest annual decline. The Dallas Fed noted that while manufacturing grew due to oil and gas activity and artificial intelligence expansion, government and construction sectors suffered the largest September losses. The Dallas Fed lowered its 2026 employment forecast to 0.9 percent, citing labor supply constraints resulting from lower immigration.