Texas Leads the Nation in Job Creation in 2025

Texas closed 2025 at the forefront of U.S. employment growth, posting the largest annual increase in nonfarm jobs in the country and setting new historic highs across multiple labor market indicators. The latest federal employment data confirms the state’s continued ability to attract investment, expand its workforce, and generate opportunities across a wide range of industries.

Record Workforce and Employment Levels

Over the 12-month period from December 2024 to December 2025, Texas added 132,500 jobs, outpacing every other state and exceeding the national annual job growth rate. At the same time, the state reached record levels in both total employment and labor force participation.

The Texas labor force climbed to 15.96 million people, the highest in state history, while the number of Texans employed—including the self-employed—rose to 15.28 million. Total nonfarm employment also reached a new high of 14.34 million jobs, following a monthly gain of nearly 20,000 positions.

A Competitive Environment for Business Growth

Texas’ job performance reflects a broader economic environment that continues to support business expansion across sectors such as manufacturing, logistics, energy, technology, and professional services. 

The state’s combination of population growth, infrastructure investment, and workforce development has reinforced its position as a preferred destination for companies seeking long-term growth.

The unemployment rate in Texas stood at 4.3%, remaining below the national average of 4.4%, another indicator of the state’s sustained labor market strength.

Momentum Heading Into 2026

The strong close to 2025 underscores Texas’ role as one of the most dynamic labor markets in North America. As companies continue to relocate, expand, and invest in advanced industries, the state’s employment base and workforce capacity are expected to remain key drivers of economic competitiveness in the year ahead.