The following information has been compiled in order to create a more complete snapshot of the current economic status of Texas. The most recent labor market information for the state is from May 2024.
May 2024 Labor Market Information
- Unemployment Rate: 4.0%
- Total Non-Farm Employment: 14,195,600
- Jobs Change Over the Year: 316,700
- Annual Growth Rate: 2.3%
The Texas Workforce Commission announced the number of employed Texans and the state’s civilian labor force have each reached new highs for the last five months. Texas’ seasonally adjusted civilian labor force grew by 35,900 people in May to reach a new high of 15,262,600. “More than 200,000 people have joined the Texas workforce since May 2023, and we continue to lead the nation in year-over-year growth,” said TWC Chairman Bryan Daniel. Trade, Transportation, and Utilities added 13,300 jobs, registering as the industry with the largest over-the-month increase.
The Dallas Federal Reserve Bank of Dallas released an article, Texas Employment Forecast Softens; 32,700 jobs added in May, in which their employment forecast indicates jobs will increase by 2.4 percent this year, which is a decrease from the previous month’s forecast of 2.6 percent. This forecast suggests approximately 333k jobs will be added this year in Texas, meaning employment in December 2024 could total 14.3m. Luis Torres, Dallas Fed senior economist, notes that hospitality, trade, and transportation led the way in overall job growth while the two sectors posting job losses were oil and gas and information services.
The release of employment data by the U.S. Bureau of Labor Statistics (BLS) notes that the largest job gains in May 2024 occurred in:  California (+43,700), Texas (+41,800), and Ohio (+21,200) although none had the largest percentage gain. BLS goes on to clarify that over the year, nonfarm payroll employment increased in 30 states and was essentially unchanged  in 20 states and the District of Columbia. The largest job gains occurred in Texas (+316,700), Florida (+222,200), and California (+207,700). Governor Greg Abbott released a statement on the employment data the same day, “Texas Is America’s Undisputed Jobs Leader With Most Jobs Added.”
Congressional Budget Office: Update to the Economic Outlook
The Congressional Budget Office has released a slide deck with an update to the economic outlook for 2024 to 2034 in which the growth of real GDP, among other figures. The CBO notes that economic output is projected to grow more slowly in 2024 than it did in 2023. Adding, this is a result in consumer spending slowing and the growth rate of imports rising relative to the growth rate of demand.
Texas Top Ranked for Best Business Climate
Texas has been recognized as having the Best Business Climate in the nation for the second year in a row by Business Facilities magazine in their 20th Annual Rankings Report. The ranking includes consideration of economic development activity and achievements over the previous year, including capital investment and job creation announcements and implementation. Texas welcomed more than 1,200 expansion and relocation projects in 2023, and these investments are expected to create nearly $60 billion in capital investment and more than 35,000 jobs. During 2023 through April 2024, 24 companies chose Texas for their corporate headquarters. “Advanced manufacturing, professional services, and data centers are among the business types locating in the state in 2023 and into 2024″ said Business Facilities Editorial Director Anne Cosgrove.
State Sales Tax Revenue Totaled $4 Billion in May
Comptroller Glenn Hegar said state sales tax revenue totaled $4.01 billion in May, 4.5 percent more than in May 2023. The majority of May sales tax revenue is based on sales made in April and remitted to the agency in May. “Monthly state sales tax collections soundly exceeded collections from last May, contrary to signs of slowing spending in recent months,” Hegar said. “Growth in receipts occurred for almost all major sectors.
Texas collected the following revenue from other major taxes:
- motor vehicle sales and rental taxes -$633 million, up 6 percent from May 2023;
- motor fuel taxes -$325 million, down 4 percent from May 2023;
- oil production tax -$556 million, up 12 percent from May 2023;
- natural gas production tax -$180 million, down 9 percent from May 2023;
- hotel occupancy tax -$71 million, down 1 percent from May 2023; and
- alcoholic beverage taxes -$152 million, down 3 percent from May 2023.
Comptroller Glenn Hegar Distributes $1.1 Billion in Monthly Sales Tax Revenue to Local Governments
Comptroller Glenn Hegar announced he will send cities, counties, transit systems and special purpose districts $1.1 billion in local sales tax allocations for June, 6.8 percent more than in June 2023.
