The Texas job market is thriving amid strong national numbers; here's what to know

The Texas job market is thriving amid strong national numbers; here’s what to know

Posted by author February 3, 2025 Jobs

The Texas job market showed strong growth in 2023, and that momentum appears to have continued into 2024. The U.S. has consistently posted solid job and employment numbers, reflecting a generally healthy economy, and Texas has been no exception.

Employment data from the Texas Labor Market review shows consistent growth from 2023 to 2024, with Austin’s job market continuing to outperform national averages.

Even as major economies in Europe and Asia have struggled, the U.S. economy has remained strong, and Texas remains a key contributor to the overall strength of America’s economy.

Here’s what you need to know about the Texas job market.

Strong Texas job market remained stable in 2024

Since the COVID-19 pandemic, recovery efforts and relocations in the workforce have spotlighted Texas as one of the nation’s biggest job markets.

According to the Texas Workforce Commission, Texas reached several milestones in 2024. The state’s labor force hit a new high of 15,575,900, while the number of Texans working — including the self-employed — rose to 14,922,200. The total number of nonfarm jobs also reached a record 14,318,700. From December 2023 to December 2024, Texas added 284,200 nonfarm jobs, growing at a faster annual rate than the national average.

“Everything is bigger in Texas, and that includes creating good-paying jobs,” Gov. Greg Abbott said in a Jan. 24 news release. “As we break record after record for total jobs, the number of Texans working, and our labor force, we begin the new year as America’s job creator. Jobs are growing here, businesses are growing here, the future is growing here. Texas partners with businesses to help them grow and succeed, providing career training for high-demand industries and cutting burdensome regulations. Working together, we will continue to lead the nation and build a brighter future for all Texans.”

Austin is thriving as it continues to grow economically

As of this writing, the U.S. unemployment rate stands at 4.1%, while Austin’s rate is a full percentage point lower at 3.1%. This is also below the state average of 3.7%, according to data from the Texas Workforce Commission.

Moreover, the Austin area has experienced an annual growth rate of 1.7%, representing the collective addition of 22,700 jobs since December 2023. Economic data analytics website WalletHub ranked Austin as the 11th best market in the country for job seekers.

“This national trend of robust job growth is reflected in Austin’s thriving labor market as well,” said Tamara Atkinson, CEO of Workforce Solutions Capital Area. “With December’s addition of 3,200 jobs, our community’s resilience and adaptability were shining through as we closed the year on a high note. This growth not only strengthens our local economy but also creates even more opportunities for job seekers to begin 2025 with renewed hope for their next career move.”

According to a report produced using data from the Texas Workforce Commission and the Austin Chamber of Commerce, the top growing industries in Austin are technology, health care and manufacturing.

U.S. is outpacing other world leaders

As the Group of Seven leading industrialized nations struggle to corral inflation rates, the U.S. has for the most part been able to tame it, in part thanks to consistent consumer spending. The U.S. has also enjoyed the strongest gross domestic product recovery from COVID-19 of any G7 nation, with its GDP currently sitting at $27.36 trillion.

The U.S. has added jobs to the market for 48 months consecutively. This streak ties for the second-longest period of employment expansion on record.

The U.S. job market also finished 2024 strong, adding 256,000 jobs. Those figures brought employment down to 4.1%. Despite these encouraging numbers, experts are uncertain about the future of the job market as President Donald Trump’s policy changes, specifically around tariffs and immigration, might start to make employment numbers shrink.

Beck Andrew Salgado covers trending topics in the Austin business ecosystem for the American-Statesman. To share additional tips or insights with Salgado, email Bsalgado@gannett.com.