Texas tops the nation in job growth as new records are set for employment and labor force size
Austin, Texas – Texas is entering the new year with strong momentum as Greg Abbott highlighted new labor market data showing the state outpaced the rest of the nation in job growth and reached multiple all-time employment records in 2025.
According to December labor market estimates, Texas gained more nonfarm jobs than any other state over the past year, reinforcing its position as a national leader in economic growth, workforce expansion, and business investment.
“Texas is America’s jobs leader because Texas is where free enterprise flourishes and where hard work is rewarded,” said Governor Abbott. “That is why Texas tops all states for business relocations and expansions. Job-creating businesses — large and small — invest with certainty in Texas and in our young, skilled, and growing workforce. With more Texans working than ever before, we begin a new year of boundless opportunity in Texas.”
Texas sets new employment records in 2025
Data released by the U.S. Bureau of Labor Statistics shows that Texas added 132,500 jobs from December 2024 to December 2025, more than any other state in the country. The state also outpaced the national annual job growth rate by half a percentage point, further separating itself from other large economies.
Texas reached a new historic high for its labor force, which climbed to 15,964,000, the largest ever recorded in the state’s history. At the same time, the number of Texans working, including self-employed individuals, rose to a record 15,283,600, reflecting broad participation across industries and regions.
Another milestone was reached in total nonfarm jobs, which hit an all-time high of 14,341,000 after Texas added 19,700 positions in December alone. These gains pushed the state forward even as many other regions faced slower growth.
The Texas unemployment rate stood at 4.3%, remaining below the national unemployment rate of 4.4%, signaling a tight labor market and steady demand for workers.
Governor Abbott pointed to the state’s business-friendly climate as a major factor behind the continued growth. Texas has consistently led the nation in business relocations and expansions, attracting companies that cite regulatory certainty, workforce availability, and long-term economic stability as key reasons for moving or growing operations in the state.
State leaders say the strong performance in 2025 reflects a diverse economy, with gains spread across sectors rather than tied to a single industry. Abbott recently highlighted these results while reviewing Texas’ broader economic achievements over the past year, emphasizing that workforce growth and job creation remain central to the state’s long-term strategy.
With record numbers of people working and businesses continuing to invest, state officials say Texas is positioned to build on its momentum as it moves further into 2026.
