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
Texas has recently reported impressive job growth figures, adding an impressive 195,600 nonfarm jobs over the past year, leading the nation in job creation. However, the state is facing rising unemployment rates in various regions, particularly within the Austin metropolitan area, raising concerns amid this success.
The Numbers Speak
In August alone, Texas accounted for 17,600 new job positions, bringing the total number of nonfarm jobs statewide to a remarkable 14,347,700. This growth positions Texas as America’s jobs leader, a title which Governor Greg Abbott is proud to claim. The state’s labor force has reached a record high of 15,857,300 individuals, with approximately 15,213,500 Texans engaged in some form of employment, including self-employment. The governor attributes this growth to a strong labor force and a favorable business climate.
Good Intentions Abound
To sustain this trend, Governor Abbott has initiated measures to reduce regulatory barriers for businesses. Jerome Greener was recently appointed as the Director of the Texas Regulatory Efficiency Office (TREO) to simplify regulations, positively impacting businesses both large and small. Additionally, new legislation has been signed to enhance career and technical education for students, demonstrating a dedication to cultivating a skilled workforce ready for the future.
Spotlight on Austin
Despite the strong overall growth, the Austin metropolitan area has experienced a troubling decline in job creation. From July 2024 to July 2025, only 9,600 jobs were added, marking the weakest job growth in 15 years for the region. The job growth percentage in Austin has now dipped to 0.8%, falling below the national average for the first time since December 2003.
The unemployment rate across Texas has seen a slight uptick, reaching 4.7% in August, an increase from 4.2% in July. San Antonio’s unemployment rate also rose to 4.4%, while Austin’s rate stood at 3.9%. The recent surge in unemployment claims in Bexar and Travis counties is believed to be linked to flooding incidents that affected the region earlier this summer.
A Closer Look at the Unemployment Landscape
While job creation remains a highlight, it is crucial to recognize that the statewide unemployment rate in Texas remains steady at 4.1%, unchanged from a year ago. Notably, job growth in Texas is exceeding the national growth rate by half a percentage point for 2025. The leisure and hospitality sector has shown the most significant gains, generating 10,900 new jobs in August alone.
Challenges Ahead
Looking ahead, the Austin area is facing demographic shifts, characterized by a decline in new residents and an influx of older individuals. The high cost of living in Austin has greatly impacted its attractiveness to newcomers. Current trends indicate that Travis County is experiencing a net outflow of residents, contrasting previous years of growth.
As Austin’s growth rate slows, projections suggest that the population could reach 5.2 million by 2060 under existing patterns. The evolving job market landscape in Texas is expected to continue to stir conversation as it confronts both growth and challenges in the future.
Deeper Dive: News & Info About This Topic
- CoStar: Job Growth Continues to Cool in Austin, Texas
- Hoodline: Texas Surges Ahead in National Job Growth
- KVUE: Texas Record Job Growth
- Axios: Texas Job Growth Slows
- Wikipedia: Economy of Texas
Author: STAFF HERE AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis 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 SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
