Texas led all U.S. states with a gain of 159,400 nonfarm jobs over the 12-month period ending in August 2026, according to labor market data released by the Texas Workforce Commission and the U.S. Bureau of Labor Statistics. Governor Greg Abbott attributed the economic expansion to the state’s skilled workforce and business climate.
The 12-Month Trajectory and Labor Force Milestones
Economic momentum across the Lone Star State continued to outpace national averages through late summer. Nonfarm jobs in Texas reached a total of 14,469,300 following an increase of 5,600 jobs in August, according to the Texas Workforce Commission. Meanwhile, the broader count of working Texans—including the self-employed—hit 15,225,100.
Here is why that matters for the broader national economy: Texas expanded its annual job growth rate to 1.1% from August 2025 to August 2026, outpacing the national growth rate by 0.7 percentage points. The state’s total labor force climbed to 15,932,600, adding 10,900 participants over the 12-month span.
Data from September labor market updates further underscored these milestones, capturing a state labor force reaching a historic high of 15,879,000. Total nonfarm employment in that September dataset touched 14,343,800 after a monthly gain of 4,600 positions, while the state unemployment rate held steady at 4.1%, remaining below the national average of 4.4%.
Sectors Driving the Growth
Economic diversification remains a central pillar of the Texas labor market. According to state labor reports, the industries registering the fastest growth rates between August 2025 and August 2026 span multiple domains.
| Metric | Figure |
|---|---|
| 12-Month Nonfarm Job Gains | 159,400 jobs |
| Total Nonfarm Jobs (August 2026) | 14,469,300 |
| Total Texans Working (Including Self-Employed) | 15,225,100 |
| Total Texas Labor Force | 15,932,600 |
| Annual Job Growth Rate | 1.1% (0.7 percentage points above national rate) |
| Top-Growing Industry Sectors | Professional and Business Services, Leisure and Hospitality, Construction |
Professional and Business Services, Leisure and Hospitality, and Construction emerged as the primary engines of this expansion.
“A skilled workforce and the best business climate in America give job creators the confidence to invest in Texas,” Governor Abbott stated, emphasizing that the state continues to drive broader economic expansion nationwide.
Investing in the Pipeline
State leaders have leaned heavily on targeted educational grants to bridge skills gaps in traditional trades and advanced technical fields.
Earlier this week, Governor Abbott announced Jobs and Education for Texans (JET) grants totaling $1,327,075 awarded to four West Central Texas schools. These funds are designated for purchasing and installing specialized equipment to train students for high-demand occupations, including welding and nursing.
This initiative builds upon broader state funding efforts, including over $14 million distributed to higher education institutions and independent school districts for career and technical education programs, alongside $1 million dedicated specifically to dual credit grants.
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