January Labor Market Data
The Texas Workforce Commission has released employment data for January.
The labor market data shows:
- Texas added 40,100 nonfarm jobs over the month of January, reaching a new high of 14,379,500 total jobs.
- The Texas labor force totaled 15,955,200.
- Texans working, including self-employed, totaled 15,267,100.
- Texas gained 112,200 jobs from January 2025 to January 2026, outpacing the national annual job growth rate
The Construction industry had the largest private sector over-the-month increase in January after adding 11,800 jobs. Construction also posted an annual growth rate of 3.4 percent in January, which was the highest of any major industry. The Leisure and Hospitality industry and Private Education and Health Services industry each added 10,300 jobs over the month while Professional and Business Services added 10,200.
The Amarillo metropolitan statistical area (MSA) had the lowest unemployment rate with a not seasonally adjusted rate of 3.3 percent in January. It was followed by the Midland MSA at 3.4 percent and the San Angelo MSA at 3.5 percent.
The full press release from the Texas Workforce Commission can be found here. Governor Abbott’s press release regarding the announcement can be found here. More information can be found on TexasLMI.com.
State Sales Tax Revenue Totaled $4 Billion in March
Acting Comptroller Kelly Hancock announced that state sales tax revenue totaled $4 billion in March, 10 percent more than in March 2025.
Receipts from the sectors mainly affected by business spending were all up significantly compared with a year ago. The wholesale trade, construction and mining sectors were all up double digits compared with last March, and the manufacturing sector was up approximately 7 percent.
The majority of March sales tax revenue is based on sales made in February and remitted to the agency in March.
Texas collected the following revenue from other major taxes:
- motor vehicle sales and rental taxes — $415 million, down 23 percent from March 2025;
- motor fuel taxes — $303 million, up 3 percent from March 2025;
- oil production tax — $378 million, down 11 percent from March 2025;
- natural gas production tax — $180 million, down 38 percent from March 2025;
- hotel occupancy tax — $65 million, up 12 percent from March 2025; and
- alcoholic beverage taxes — $142 million, up 2 percent from March 2025.
The Comptroller’s full press release can be found here. More information can be found on the Comptroller’s Monthly State Revenue Watch.
