News Summary

Texas has reported impressive job growth with over 195,600 nonfarm jobs added, ahead of all other states. However, rising unemployment rates, particularly in the Austin metro area, raise concerns as job growth slows. Governor Abbott takes steps to streamline business regulations and invest in education, yet Austin’s job market struggles with the lowest growth in 15 years and a rising cost of living, leading to demographic shifts. The mixed signals present challenges for Texas’s economic future.

Texas Job Market: A Mixed Bag of Growth and Challenges

In recent headlines, Texas has been making waves thanks to record-breaking job growth that has Governor Greg Abbott beaming with pride. But despite all the good news, rising unemployment rates across various regions are raising eyebrows, especially in the Austin metro area.

The Numbers Speak

Here’s the scoop: over the past year, Texas has added a whopping 195,600 nonfarm jobs, more than any other state in the country. Talk about a booming job market! Just last month, August saw an addition of 17,600 new positions alone. With this, the total count of nonfarm jobs in Texas has risen to an impressive 14,347,700. The job growth has set Texas apart, making it America’s jobs leader, a title Governor Abbott is eager to celebrate.

The state’s labor force reached a record high, now standing at 15,857,300, with about 15,213,500 Texans taking the plunge into some form of employment – that includes those who are self-employed. Abbott credits the strong labor force and favorable business climate as key factors in this success story.

Good Intentions Abound

In a bid to continue this impressive upward trend, Abbott is determined to cut through the red tape that stymies businesses. He recently appointed Jerome Greener as the Director of the Texas Regulatory Efficiency Office (TREO), aiming to streamline regulations and make life easier for businesses big and small. Plus, he signed two new bills that will expand career and technical education for students in Texas, showing a commitment to building a skilled workforce for the future.

Spotlight on Austin

9,600 jobs were added – marking the weakest job gain in the last 15 years. Furthermore, Austin’s job growth percentage dropped to just 0.8%, for the first time falling below the national rate since December 2003.

4.7%, an increase from 4.2% the previous month. San Antonio also saw a rise, with an unemployment rate of 4.4% while Austin stood at 3.9%. Notably, the surge in unemployment claims in Bexar and Travis Counties may be attributed to flooding events that hit the area earlier in the summer.

A Closer Look at the Unemployment Landscape

4.1%, not showing any change from a year ago. Contrastingly, the job growth in Texas is notably outpacing the national growth rate by half a percentage point in 2025. The leisure and hospitality sector took center stage with the largest job increase in August, bringing 10,900 jobs into play.

Challenges Ahead

high cost of living in Austin is affecting its allure for potential new residents. In fact, Travis County is now witnessing a trend where more people are moving out than moving in, a clear reversal of past patterns.

5.2 million by 2060 if current trends persist. As the landscape continues to change, the Texas job market remains a hot topic that will keep evolving in the coming years.

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Author: STAFF HERE DALLAS WRITER

DALLAS STAFF WRITER The DALLAS STAFF WRITER represents the experienced team at HEREDallas.com, your go-to source for actionable local news and information in Dallas, Dallas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the State Fair of Texas, Deep Ellum Arts Festival, and Dallas International Film Festival. Our coverage extends to key organizations like the Dallas Regional Chamber and United Way of Metropolitan Dallas, plus leading businesses in telecommunications, aviation, and semiconductors that power the local economy such as AT&T, Southwest Airlines, and Texas Instruments. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.