After a slow start to the year, Texas employment growth is expected to reach 2% in 2026, according to the latest projection from the Dallas Fed. This is in line with the state’s long-run average.
Texas Job Growth
The Dallas Fed’s senior economist, Luis Torres, stated that Texas job growth has been surprisingly strong despite labor supply constraints. The data center buildout and relatively high oil prices have provided a boost to state economic activity and job growth.
In June, Texas added over 42,000 jobs, representing an employment growth rate of 3.5%. The jobs gains came largely from professional business services, construction, and trade and transportation. Greater Austin notched the highest monthly growth rate at 5.8%, while greater Fort Worth added jobs at a rate of 3.9% and greater Dallas added jobs at a rate of 3.7%.
The Dallas Fed also revised May jobs gains upward slightly, to 1.3%. Throughout 2026, Texas has mostly posted solid jobs gains, including a 3.4% growth rate in March and 2.2% growth rate in April.
Economists attributed the slowdown in 2025 to widespread macroeconomic uncertainty, including the Trump administration’s tariffs and flaring tensions in the Middle East, as well as the state’s struggling oil and gas industry. However, this year, the state’s economy has proven surprisingly resilient despite the war in Iran and continued labor supply issues.
Original reporting: Texarkana Gazette — read the source article.
