Texas Shatters Employment Records in December, Cements Status as Nation's Top Job Creator for 2025
AUSTIN, Texas – Defying national economic headwinds, Texas closed out 2025 by setting multiple employment records in December, solidifying its position as the undisputed leader in U.S. job growth for the year, according to delayed data from the U.S. Department of Labor.
The figures, held up by last fall's federal government shutdown, show the Lone Star State added 132,500 nonfarm jobs from December 2024 to December 2025—more than any other state—with a growth rate of 0.9% that outpaced the national average by half a percentage point.
"These aren't just numbers; they represent hundreds of thousands of Texans providing for their families," Governor Greg Abbott said in a statement. "Our model of low taxes, sensible regulation, and a deep talent pool continues to attract and foster business investment of all sizes."
In December alone, Texas broke its own records in three key categories: the largest civilian labor force in state history (15,964,000), the most residents employed (15,283,600), and the highest number of nonfarm jobs (14,341,000). The state's workforce expanded by 25,000 in the final month of the year.
"Growth was broad-based in December," noted Texas Workforce Commission (TWC) Chairman Joe Esparza, highlighting gains of 9,500 jobs in Trade, Transportation, and Utilities, alongside increases in Leisure and Hospitality and Professional Services. The Private Education and Health Services sector saw the strongest percentage growth at 2.3%.
While the state's unadjusted unemployment rate of 3.9% sits below the national 4.1%, the data reveals a stark geographic divide. The Amarillo area boasted a 2.8% rate, among the nation's lowest. Conversely, border communities like Eagle Pass struggled with an 8.7% unemployment rate, underscoring ongoing regional economic challenges.
Analysis & Reaction
The sustained growth is widely attributed to Texas's business-friendly policies and significant in-migration, which supplies a steady stream of workers. However, economists caution that the widening gap between booming metropolitan areas and struggling border regions could pose long-term social and political challenges for state leaders.
What Texans Are Saying:
"This is proof our economic formula works," said Marcus Chen, a small business owner in Dallas. "My supply chain company added three positions last quarter. The confidence here is tangible."
"Absolute smoke and mirrors," fired back Rebecca Arroyo, a community organizer in El Paso. "Tell these 'record' numbers to the folks down in the Rio Grande Valley with 6-8% unemployment. Austin and Houston are booming while our communities are left behind. This isn't one Texas; it's two."
"The structural growth is impressive," offered David P. Mitchell, an economist at a Lone Star State university. "The key question is whether state-led workforce initiatives, like the Texas Internship Network, can successfully channel opportunities into the high-unemployment regions. The data shows the potential and the predicament."
With 17 of its 28 metropolitan areas reporting jobless rates below the U.S. average, Texas enters the new year from a position of considerable economic strength, yet faces the persistent task of ensuring its prosperity reaches every corner of the state.