Texas’ labor market posted its strongest year‑long performance of any state, adding 165,600 nonfarm jobs between August 2025 and July 2026. The figure tops the national tally and exceeds California’s gain of 112,700 jobs by nearly 53,000, according to the latest Bureau of Labor Statistics release.
Job growth and unemployment rates
Employers expanded the state’s nonfarm payroll to 14,468,000, reflecting a 1.2% annual increase—one full percentage point above the national growth rate. In July alone, Texas employers added 1,600 positions, while the Texas Workforce Commission reported the seasonally adjusted unemployment rate rose modestly from 4.4% in June to 4.5% in July. That rate remains above the current national average of 4.1% but is only a slight uptick from the 4.2% rate recorded in July 2025.
Labor force and sector performance
The number of working Texans, including the self‑employed, reached 15,207,200. The civilian labor force grew to 15,915,600 after adding 10,800 workers in July and 17,800 over the past year. Professional and business services, leisure and hospitality, and construction posted the fastest annual growth rates among sectors. Government employment, by contrast, declined during the reporting period.
Governor Abbott’s response
Governor Greg Abbott praised the results, stating, “The hard work of Texans powers America’s most dynamic economy.” His office highlighted that Texas has added more than 2.6 million jobs during his tenure and now hosts 57 Fortune 500 headquarters alongside more than 3.5 million small businesses.
Context and upcoming data
The July figures are preliminary. The BLS will issue benchmark revisions on August 28 using state unemployment‑insurance records that nearly all employers must file. Earlier June results, reported by the Dallas Express, had estimated a 43,400‑job monthly gain and a total of 177,900 jobs added over the year.
These numbers reinforce Texas’ reputation as a business‑friendly environment, a point often cited by state leaders when promoting the state’s economic policies and regulatory climate. While the unemployment rate ticked higher, the overall job creation momentum suggests continued resilience in the Texas economy.
Original reporting: WBAP News/Talk (Dallas-Fort Worth) — read the source article.
