News Summary
Texas is experiencing a downturn in its job market, with recent reports indicating a loss of around 16,000 jobs in June. The Dallas-Fort Worth area saw the largest impact, losing about 10,000 jobs. Despite these challenges, Texas has added over 215,500 jobs in the past year, showing resilience and a growth rate that exceeds the national average. The economy faces uncertainty due to global tariffs affecting key sectors, but the state’s employment landscape still shows potential for recovery.
Texas experienced a downturn in its economy in June 2025, with a reported loss of 16,000 jobs, as detailed in data from the Bureau of Labor Statistics. This reduction marks a notable shift in a state previously known for its robust job growth.
The Dallas-Fort Worth-Arlington metropolitan area was particularly hard hit, accounting for nearly 10,000 job losses. In total, nonfarm payrolls fell from 4,312,800 in May to 4,302,500 in June. This decline reflects trends identified in a recent analysis from the Federal Reserve Bank of Dallas, which has adjusted earlier predictions for job growth in Texas.
According to the Federal Reserve’s July 18 employment forecast, job growth for the first half of 2025 was initially estimated at 1.8%, but this figure has since been revised downwards to 1.7% for the entire year, decreasing from an earlier forecast of 2%.
The job losses in June appeared broad-based and impacted several sectors, with the oil and gas and professional business services sectors experiencing the most significant downturns. Despite these losses, cities like Houston and San Antonio maintained stable employment levels, while Austin saw a reduction of approximately 1,000 jobs.
Conversely, certain sectors managed to add jobs during this time, including information services, education and health, and government. The Dallas-Fort Worth area reported a year-over-year employment increase of 1% compared to June 2024; however, its growth slightly lagged behind the overall increase in the civilian labor force.
As for unemployment, Texas recorded an unemployment rate of 3.8%, which reflects a decrease of 0.5% from the previous year but represents a slight increase of 0.1% from May 2025. This mixed employment picture underscores the uneven strength of the broader economy, where some sectors continue to thrive while others endure challenges.
The uncertainty in the economy has been exacerbated by ongoing global tariffs and their effects on trade policies. Economic data indicates that the United States’ GDP increased by 3% in the second quarter of 2025 following a contraction in the first quarter, although this rebound may be misleading due to a significant drop in imports tied to prior tariff measures. Furthermore, expectations of a slowdown in both consumer spending and business investment loom ahead.
The Perryman Group has projected that tariffs could lead to the loss of as many as 97,000 jobs in Texas, with the state heavily reliant on exports. Key sectors such as machinery, chemicals, and electronics are especially vulnerable to these tariffs. In scenarios where a potential 30% tariff is implemented, Texas could face $28.8 billion in lost consumer spending along with a potential loss of over 96,900 jobs.
Such disruptions in international trade could not only diminish the Texas economy but also weaken its global influence, particularly in the energy sector. Despite these challenges, Texas has experienced record employment growth in recent months, with the state’s labor force hitting a new high of 15,814,400 earlier in April 2025. Since taking office, Governor Greg Abbott has noted that Texas added over 2.5 million jobs and achieved a 1.5% job growth rate over the past year, exceeding national growth by 0.3%.
In April, the professional and business services industry saw the highest job growth, adding 10,900 jobs during that month. Texas’ unemployment rate has remained relatively low at 3.7%, still better than the national average of 3.9%.
Deeper Dive: News & Info About This Topic
- Dallas News: Texas Lost 16,000 Jobs in June
- Wikipedia: Economy of Texas
- Houston Chronicle: Texas and Trump Tariffs
- Google Search: Texas Economy News
- The Center Square: Texas Job Growth
- Google Scholar: Texas Jobs Growth
- CW 33: Texas Job Losses and AI
- Encyclopedia Britannica: Texas Job Market
- Statesman: Texas Job Growth Updates
- Google News: Texas Job Losses
Author: STAFF HERE COLLEGE WRITER
The COLLEGE STATION STAFF WRITER represents the experienced team at HERECollegeStation.com, your go-to source for actionable local news and information in College Station, Brazos 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 the Brazos Valley Fair & Rodeo, Chilifest, and Aggie Muster. Our coverage extends to key organizations like the Bryan-College Station Chamber of Commerce and United Way of the Brazos Valley, plus leading businesses in education, biotechnology, and retail that power the local economy such as Texas A&M University, Fujifilm Diosynth Biotechnologies, and H-E-B. As part of the broader HERE network, including HEREAustinTX.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
