October marks another milestone for Texas’ labor market, as the state continues to see significant workforce expansion and job growth.
Texas' civilian labor force hit a new record high in October, as the state added 47,300 people to its workforce, bringing the seasonally adjusted total to 15,497,100. This marks the tenth consecutive month of growth in the state's labor force and underscores the state's resilience and strong economic outlook. Over the past year, Texas has added 360,800 people to its civilian labor force, demonstrating robust demand for workers across various industries.
The October figures, released by the Texas Workforce Commission (TWC), show that Texas’ labor force continues to expand, despite a slight dip in total nonfarm employment. The state's seasonally adjusted nonfarm employment fell by 10,600 jobs from September to October, bringing the total to 14,276,300. However, the year-over-year comparison is much more positive, with Texas adding 274,600 jobs from October 2023 to October 2024. This represents an annual growth rate of 2.0 percent, outpacing the U.S. growth rate by 0.6 percentage points.
The unemployment rate in Texas remained stable at 4.1 percent, consistent with the previous month. The state's labor force participation rate has been steadily increasing, contributing to the ongoing job growth and providing Texas employers with a growing talent pool.
The Texas labor market showed notable growth in several sectors, with the Financial Activities industry leading the charge. The sector added 6,200 jobs in October alone, a significant increase that reflects broader trends in the state’s economy. Over the past year, the financial activities sector has seen growth of 3.1 percent in Texas, significantly outpacing the national growth rate by 2.8 percentage points.
The Leisure and Hospitality sector also showed strong performance, with an addition of 4,900 jobs in October. This sector has rebounded significantly since the pandemic, benefiting from increased consumer demand for travel, entertainment, and dining services.
Other sectors showing growth include Information, which added 1,900 jobs in October, and Manufacturing, which saw a smaller increase of 1,900 jobs. While the manufacturing industry’s growth rate has slowed compared to other sectors, it still plays a crucial role in the state's economic foundation.
TWC Chairman Bryan Daniel emphasized the importance of the continued growth in Texas' labor force, noting that it creates new opportunities for both employers and job seekers. "Continued growth in the Texas labor force helps to create opportunities for employers and job seekers alike," he said. "TWC will continue to provide training solutions—from high school programs to advanced skills development—to help meet the workforce needs of our state."
The Midland Metropolitan Statistical Area (MSA) had the lowest unemployment rate in Texas for October, with a not seasonally adjusted rate of just 2.8 percent. Other MSAs with notably low unemployment rates included Amarillo (3.1 percent) and College Station-Bryan (3.2 percent). These areas reflect the broader trend of a tight labor market across Texas, as demand for skilled workers continues to grow in both urban and rural regions of the state.
TWC Commissioner Representing Labor Alberto Treviño III highlighted the impressive workforce growth seen over the past year, with more than 360,000 individuals joining the civilian labor force in the last 12 months. "Texas has experienced remarkable workforce growth, with over 360,000 people joining the civilian labor force in the past year," Treviño said. "TWC offers a wide variety of training programs and resources to help Texans gain new skills and achieve their career goals in our robust Texas economy."
Meanwhile, TWC Commissioner Representing Employers Joe Esparza emphasized the advantages that the growing labor force provides to Texas businesses. "With the addition of 47,300 Texans in the civilian labor force, Texas employers have access to an expanding and diverse talent pool," Esparza said. "TWC and our 28 Workforce Solutions partners are committed to ensuring Texas businesses have the tools they need to succeed in our rapidly growing economy."
As Texas continues to see strong labor market growth, the demand for skilled workers across various sectors is expected to rise. The Texas Workforce Commission has placed a strong emphasis on workforce training and development to help meet this need. Programs range from high school career training initiatives to advanced skills development programs for adult learners and professionals.
The TWC's efforts, in partnership with local Workforce Solutions offices, aim to ensure that Texas' workforce remains competitive and well-prepared for the evolving job market.
Texas’ labor market remains strong, with record-breaking growth in the civilian labor force and continued job creation across a variety of sectors. While the slight dip in nonfarm employment in October is worth noting, the broader trend of growth continues to paint a positive picture for the state’s economy. With a stable unemployment rate, rising workforce participation, and a diverse talent pool, Texas is poised to maintain its position as one of the nation's leading economic powerhouses.
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