Texas July Jobs Report | Employment Trends & Growth Data

July Job Market Performance in Texas

Texas businesses added 1,600 nonfarm jobs during July 2026. This modest increase brings total state employment to 14.468 million. While the monthly figure represents a slight uptick, the state's broader performance over the past twelve months provides a clearer picture of regional labor demand. Texas added 165,600 positions throughout the last year, which marks a 1.2% annual growth rate. This rate remains one percentage point higher than the national average, according to the Texas Workforce Commission.

The civilian labor force expanded by 10,800 people in July as more workers entered the market. Private-sector employers accounted for 3,300 of the total new positions created. These specific industry gains suggest stability in service-oriented sectors. Private education and health services led the surge by adding 5,900 jobs. Professional and business services contributed another 3,600 positions, while the leisure and hospitality sector grew by 3,400 roles.

Regional Employment Trends

The Austin-Round Rock-San Marcos metro area reported 1.51 million employed residents in July. This figure indicates a monthly gain of 1,600 jobs and a year-over-year increase of 5,800 residents. The local labor force now totals 1.57 million individuals. The area's unemployment rate decreased slightly to 4.0% in July, down from 4.1% in June, though it sits higher than the 3.6% recorded in July 2025.

Dallas-Fort Worth-Arlington saw a different pattern. The region recorded approximately 4.38 million employed residents, which represents an increase of roughly 20,900 individuals from the previous month. However, year-over-year data shows 1,800 fewer employed residents compared to July 2025. The unemployment rate for the region hit 4.6%, a marginal improvement from the 4.7% rate seen in June.

The Houston-Pasadena-The Woodlands area added 4,400 jobs over the month. This brings the total count of employed residents to 3.72 million. Compared to the same time last year, the Houston metro area has seen an increase of 6,300 residents. Its unemployment rate sits at 5.1%, which is down from 5.2% in June but remains higher than the 4.8% recorded in July 2025.

Industrial Context and Future Outlook

Midland currently reports the lowest metropolitan unemployment rate in the state at 3.4%. San Angelo follows at 3.8% and Abilene at 3.9%. These figures represent lower percentages than the state’s larger metropolitan hubs. The regional disparities in unemployment highlight how energy production and regional service industries continue to impact local labor markets in distinct ways. Historically, these smaller metros demonstrate lower volatility compared to urban economic centers like Houston or Dallas.

Texas Workforce Commission Chairman Joe Esparza pointed to the annual job gains as a indicator of state economic strength. He noted that the 165,000 jobs created over the last year demonstrate the output of employers across the region. Economists often look to these year-over-year metrics to understand long-term growth patterns rather than month-to-month fluctuations. The state continues to maintain a competitive position relative to national averages.

Market observers expect the next set of data on September 18. This report will cover the August labor-market performance. Analysts will watch to see if the private-sector growth in health and business services continues or if market shifts alter the pace of job creation. The persistent strength in the labor force suggests employers are still hiring, even as some metro areas balance year-over-year employment numbers.