Texas continues to show robust job growth, with employers adding 18,900 positions in January, extending the state’s impressive streak of job gains to 43 out of the last 45 months. The expansion of the labor force, which now stands at 14,053,400, underscores the state’s resilience and economic vitality.
While Texas data typically lags behind national figures, the latest report from the U.S. Labor Department indicates that the nation added 275,000 jobs in February. Texas’ February data is eagerly anticipated and will be released on March 22. Notably, Texas outpaced the national job growth rate, with total nonfarm payrolls expanding by 263,900 jobs from January 2023 to January 2024, representing an annual growth rate of 1.9%, slightly better than the U.S. rate of 1.8%.
The state’s unemployment rate remained steady at 3.9% for the eighth consecutive month, based on revised 2023 data, down from 4.1% a year ago. This consistent low rate reflects Texas’ resilience and attractiveness to workers and businesses alike.
Chairman Bryan Daniel of the Texas Workforce Commission emphasized the state’s commitment to workforce development, noting that the labor force is continuously upskilling to meet the demands of tomorrow’s economy.
In January, five of the 11 major industries in Texas reached new high water marks, with service sectors leading the way. Additionally, the construction industry demonstrated robust growth, outpacing the national rate by 0.3 percentage points.
Governor Greg Abbott hailed the state’s January jobs growth as a testament to Texas’ strong work ethic and economic vitality, affirming that more Texans are employed now than ever before. This positive momentum bodes well for the future prosperity of the Lone Star State.
Governor Greg Abbott highlighted the state’s record-setting business expansion as a key factor in creating a robust job safety net for future generations of workers in Texas. Last week, Texas received its 12th consecutive Governor’s Cup from Site Selection magazine, recognizing the state’s success in attracting over 1,200 new or expanded business facility investments in 2023. This achievement doubled the business attraction efforts of the second-ranked state, underscoring Texas’ attractiveness to businesses seeking to expand or establish operations.
However, a separate analysis of the Texas Workforce Commission’s year-end revisions by independent research firm Beacon Economics revealed a slight adjustment in the job growth figures for 2023. While Texas’ economy remains strong, the revised data indicated that the state added approximately 43,000 fewer jobs in 2023 than initially estimated. Nonetheless, Beacon Economics emphasized that only two major industries in the state experienced job losses over the year – administrative support and information – reflecting the overall resilience of Texas’ diverse economy.
The analysis also provided insights into regional job trends, revealing that the Houston metro area gained an additional 31,500 jobs in the annual revision, while Dallas-Fort Worth saw a slight decline of 16,600 jobs. Despite the drop, the Dallas-Fort Worth metro area’s payrolls remained up by 1.7% year-over-year, indicating a continued overall positive trajectory in the region’s economy.
However, challenges persist, as reflected by the 36 companies that have filed mass layoff notices with the Texas Workforce Commission so far this year, detailing a combined 4,224 job cuts. While Texas continues to demonstrate economic resilience and attract new business investments, ongoing vigilance and proactive measures are necessary to address emerging challenges and ensure sustained economic growth and job creation.