Despite a range of challenges, including geopolitical tensions and tariffs, the Texas labor market has remained steady and is showing improvement in several sectors. Over the past year, Texas added 232,500 jobs, reflecting a 1.6% growth rate. This figure surpasses the national average job growth rate of 0.6%. Job gains have been recorded across multiple industries.
While there has been a slight decrease in job openings statewide, Dr. M. Ray Perryman explains that this is not necessarily negative for the economy. “Lest this feels like a concern, let me hasten to add that excessive job openings are an indicator that the labor force is too small to meet the needs of businesses. As a result, economic expansion is curtailed,” said Perryman.
According to recent data from the U.S. Bureau of Labor Statistics (BLS), Texas had 575,000 job openings in June. The ratio of unemployed persons per job opening was 1.1 in Texas, compared to a national average of 0.9. This places Texas in a more balanced position than states such as California (1.5), Nevada (1.4), Michigan (1.4), or Washington (1.3). In contrast, states like Montana, North Dakota, South Dakota, and Vermont face more acute labor shortages with only 0.5 unemployed persons per opening.
“Texas is in something of a Goldilocks situation, with neither an excess of unemployed workers nor too many unfilled positions,” Perryman noted.
The BLS also monitors hires and separations—categories that include quits (which often signal worker confidence), layoffs and discharges initiated by employers, and other forms such as retirements.
In June, Texas recorded 535,000 hires and 459,000 separations; over the previous twelve months ending in June, monthly averages were 494,000 hires versus 475,000 separations—a trend that helps reduce overall job openings. Of those separations in June, there were 293,000 quits and 146,000 layoffs or discharges; quit rates have dropped somewhat since their peak in June 2023 while layoffs remain stable.
Perryman summarized: “Simply stated, Texas is in the enviable position of having a growing labor force crucial to filling jobs. Demographics are quite favorable with a younger population, and well-known opportunities and advantages that are bringing in more workers and enabling further growth.” He also pointed out ongoing challenges such as reliance on immigration amid uncertain future availability but concluded that “the big-picture view remains positive.”
“Stay safe!”
