Texas Leads in Growth adding 20,000 New Jobs

The Lone Star State continues to shine bright in the national economic landscape, adding an impressive 20,000 new jobs in February 2025, according to data released yesterday by the Texas Workforce Commission. This marks the state’s 14th consecutive month of job growth, further cementing Texas as an economic powerhouse despite national economic uncertainties.

Let’s be real here: these numbers aren’t just statistics on a page. They represent thousands of Texans finding new opportunities, expanding their careers, and supporting their families. They’re the small business owner who just hired her first employee, the tech startup that doubled its workforce, and the manufacturing plant that expanded operations instead of contracting. The state demonstrates remarkable economic resilience even as other regions struggle with uncertain growth prospects.

So how exactly is Texas pulling this off while other states struggle to maintain momentum?

The answer lies in a perfect storm of advantageous conditions that Texas has inherited and engineered. The state’s pro-business regulatory environment continues to attract companies fleeing higher-tax regions. The absence of a state income tax remains a powerful incentive for businesses and workers looking to maximize their earnings.

Texas positioned itself as a destination for companies seeking fewer restrictions and lower operational costs. That positioning will continue to pay dividends into the future of Texas.

Diversification in Leading Industries

The Texas growth story is multifaceted, with several key sectors leading the charge. According to a February report from the Dallas Federal Reserve, “Job growth was generally broad-based across sectors, with strong gains seen in oil and gas, financial services and construction” throughout 2024.

Energy remains a critical component of Texas’ economy. The state’s oil and gas industry continues to benefit from elevated energy prices due to ongoing global geopolitical tensions, supporting high-wage employment and income growth across related sectors. This has created a ripple effect throughout the economy, fueling consumer spending and market expansion.

The energy sector has played a significant role, with the oil and gas industry rebounding strongly from previous downturns. But the real story is diversification – Texas isn’t just riding the energy wave anymore. Tech expansion in Austin, manufacturing growth in San Antonio, and healthcare innovation in Houston have created a multi-engine economic machine that doesn’t stall when one sector faces headwinds.

The February numbers show strong growth in technology, healthcare, and professional services. In the technology sector, companies like Oracle and Hewlett Packard Enterprise have continued their expansion in Texas. Oracle, has moved its headquarters to Texas, joining other tech companies– additionally, Oracle plans to invest about $10 billion in data center expansion in 2025.

Strategic Development of the Texas Workforce

Behind Texas’ impressive job numbers lies a strategic approach to workforce development. TWC Chairman Bryan Daniel has emphasized that “commitment to a skilled workforce is essential to the state’s continued economic success.” This philosophy is evident in the commission’s numerous training initiatives to upskill workers and meet employer needs.

TWC’s High Demand Job Training (HDJT) grant program is one initiative, specifically designed to “address regional needs with opportunities to upskill workers in Texas communities.” Through these programs, the state is ensuring its workforce remains competitive in an evolving labor market.

The Skills Development Fund represents another key initiative, providing “local, customized training opportunities for Texas businesses and workers” through collaboration among businesses, public community and technical colleges. This approach allows for targeted workforce development that aligns with local needs.

Promising Future of Texas – Growth Brings Challenges

Texas’ economic future looks promising and will likely continue to outperform national job growth rates through 2025. The Texas Employment Forecast from the Dallas Fed indicates jobs will increase 1.6 percent in 2025, with an 80 percent confidence band of 0.8 to 2.4 percent, suggesting approximately 225,000 jobs will be added in the state this year. The state’s economic development pipeline remains robust, with several major company relocations and expansions already announced for the coming quarters.

As growth continues, Texas welcomes approximately 1,000 new residents daily. This influx creates a self-reinforcing cycle – more workers attract more businesses, which attract more workers. But the Texas success story isn’t without challenges.

Housing affordability was once a major selling point, which has diminished in metropolitan areas as demand outpaces supply. Infrastructure strain is evident in traffic congestion and power grid concerns. School systems are struggling to expand quickly enough to accommodate growing student populations.

Residential construction is expected to rebound in 2025, fueled by “modestly lower mortgage rates, as well as resilient growth of demand, driven by rising metro populations, jobs, and incomes.” This housing market strength should provide additional stability and growth to the state’s economy.

Texas-Sized Opportunities

For everyday Texans, the continued job growth translates to something tangible – opportunity. In a time when economic anxiety moved through many parts of the country, Texas offers a refreshing counter-narrative of possibility and advancement.

As the state moves forward, balancing this growth with quality-of-life preservation will be crucial. But if Texas’ track record of adaptability and reinvention is any indication, don’t bet against the Lone Star State finding a way to make it work.

The February numbers are a reminder that in Texas, economic gravity seems to work differently than everywhere else.