Texas Energy Jobs Bounce Back in December, Fueling State's Record Employment Surge
AUSTIN, Texas – The Texas oil and gas industry reversed a brief employment slide in November, adding a net 2,000 upstream jobs in December, according to data released by the Texas Workforce Commission. The rebound helped propel the state to new all-time highs in total employment, reinforcing its status as the nation's undisputed jobs leader.
The upstream sector—encompassing extraction and direct support activities—saw its workforce climb to 203,400 in December. Gains were led by support activities, which added 1,500 positions. Direct oil and gas extraction jobs rose by 500. The recovery followed what analysts describe as typical year-end volatility, influenced by commodity prices and operational efficiencies.
"This isn't just a monthly blip; it's a testament to the underlying resilience and strategic importance of the Permian Basin," said energy economist Dr. Liam Chen of the Austin Policy Institute. "Even with market pressures and industry consolidation, production remains robust enough to demand a stable, high-wage workforce."
The Texas Independent Producers and Royalty Owners Association (TIPRO) noted the sector peaked at several points in 2025, driven by strong Permian output. For the full year, however, upstream employment ended "essentially flat," with a net gain of just 100 jobs, as surges in early spring were offset by mid-year adjustments.
Beyond direct employment, the industry's economic footprint is massive. With an average annual wage exceeding $133,000—68% higher than the state's private-sector average—the sector is a cornerstone of high-value employment. In fiscal 2025, oil and gas firms paid a staggering $27 billion in state and local taxes and royalties, the second-highest total in Texas history.
"That translates to nearly $74 million per day funding our schools, roads, and emergency services," Texas Oil & Gas Association President Todd Staples emphasized. "This industry delivers both economic vitality and energy security."
The tax revenue is particularly critical for many local communities. In some counties and dozens of school districts, oil and gas property taxes constitute over 90% of local tax receipts, directly funding public services and infrastructure.
Despite a broader national trend of cooling hiring in the fourth quarter, Texas continues to dominate industry job postings. Houston, Midland, Dallas, and Odessa lead U.S. cities in oil and gas job listings, with major employers like ExxonMobil and Baker Hughes actively recruiting.
Voices from the Ground:
Maria Rodriguez, Petroleum Engineer, Midland: "The December numbers are encouraging. It shows that even when prices dip, the expertise here in Texas keeps us competitive. This isn't a boom-or-bust cycle anymore; it's about sustainable, tech-driven production."
David Chen, Finance Analyst, Houston: "The wage data speaks volumes. These are careers that build the middle class and fund our state. The tax revenue story is what every Texan should know—it's what keeps our property taxes lower than they'd otherwise be."
Rebecca "Beck" Owens, Environmental Advocate, Austin: "A temporary jobs bump while we break climate records? This is a short-term sugar high. We're celebrating volatile fossil fuel jobs while ignoring the long-term stability of investing in renewables. Texas could lead in both, but we're clinging to the past."
James Holt, Rancher & Mineral Rights Owner, West Texas: "The royalties and taxes from my land fund our local school and fire department. This industry isn't some abstract concept out here; it's the lifeblood of our community. We need steady policies that allow it to thrive responsibly."
Governor Greg Abbott hailed the overall jobs record, stating, "Texas is America's jobs leader because free enterprise flourishes here." The state added more nonfarm jobs than any other in 2025 and set new records in December for total jobs, total workers employed, and overall labor force size.