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 Governor Greg Abbott Celebrates Record Job Growth Amid Rising Unemployment Rates
Texas has reported unprecedented job growth, solidifying its status as the nation’s leader in new employment opportunities. In the past 12 months, the state added 195,600 nonfarm jobs, leading all other states and showcasing its dynamic labor market, even as unemployment rates rise across various regions.
Recent statistics reveal that Texas gained 17,600 new jobs in August alone. The total number of nonfarm jobs in the state has now reached 14,347,700. Alongside this surge in job creation, the Texas labor force has also hit a record high of 15,857,300, with 15,213,500 Texans now employed, including those who are self-employed.
Governor Abbott attributed this success to Texas’s favorable business climate and its skilled workforce. He expressed a commitment to further economic growth by continuing to reduce regulatory burdens and making strategic investments in businesses. To facilitate these goals, Abbott appointed Jerome Greener as the Director of the Texas Regulatory Efficiency Office (TREO) to streamline unnecessary regulations.
In a bid to prepare future generations for the workforce, the Governor also signed two bills aimed at expanding career and technical education for students across Texas. These initiatives are part of a broader strategy to enhance workforce readiness and address the evolving job landscape.
Regional Employment Challenges
Despite the overall job growth, the Austin metropolitan area has experienced a significant slowdown, with only 9,600 jobs added from July 2024 to July 2025—the weakest annual gain the region has seen in 15 years. Consequently, Austin’s job growth percentage stands at 0.8%, marking a decline below the national growth rate for the first time since December 2003.
In August, Texas’s unemployment rate rose to 4.7%, up from 4.2% in July. Regions such as San Antonio and Austin faced increases in unemployment, reaching rates of 4.4% and 3.9% respectively. The spike in unemployment claims, particularly in Bexar and Travis Counties, is likely linked to recent flooding events that have impacted local economies.
Statewide, the unemployment rate on a seasonally adjusted basis was 4.1%, remaining unchanged from the previous year, and still outpacing the national rate by half a percentage point. In August, the leisure and hospitality sector saw the largest job growth, contributing 10,900 jobs to the total employment figures.
Concerns Over Austin’s Job Market
As job growth stalls in Austin, demographic changes are becoming evident. The city is seeing a rise in older migrants while the influx of new residents, particularly from marginalized communities, is diminishing. There are growing concerns that Austin’s high cost of living is making the city less attractive to prospective newcomers. As a result, Travis County has noted a trend where more people are moving out than moving in, which represents a significant shift from historical patterns.
Looking forward, Austin’s growth rate has noticeably slowed, with projections estimating a population of 5.2 million by 2060 if current trends persist. This prediction reflects ongoing challenges in both employment growth and housing affordability within the metropolitan area.
Overall, while Texas continues to lead the nation in job creation, the regional disparities and rising unemployment rates signal a complex economic landscape requiring ongoing focus and strategic intervention to sustain the state’s prosperity.
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 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.
