Texas Adds 17,600 Jobs in August
The Texas Workforce Commission, in cooperation with the U.S. Department of Labor’s Bureau of Labor Statistics, have released August labor force data. Texas had 14,347,700 total nonfarm jobs after adding 17,600 positions over the month in August. Over the year, the state added 195,600 jobs for an annual nonfarm growth rate of 1.4 percent, outpacing the national growth rate by 0.5 percentage points.
Texas’ civilian labor force registered at 15,857,300 after adding 8,600 people over the month and reaching a new record high level for the series. Over the year, Texas’ civilian labor force has added 169,500 people. The seasonally adjusted unemployment rate in Texas registered at 4.1 percent.
The Leisure and Hospitality industry had the largest over-the-month increase in August after adding 10,900 jobs. Private Education and Health Services added 5,200 jobs over the month while Construction added 1,100. In addition, the Construction industry grew by 2.2 percent over the year in Texas and outperformed the industry’s growth rate nationally by 1.5 percentage points.
More employment data can be found at https://texaslmi.com. The full press release can be found here.
Acting Comptroller Distributes $1.2 Billion in Monthly Sales Tax Revenue
Acting Comptroller Kelly Hancock announced that he will distribute $1.2 billion in local sales tax allocations for September, which is 5.3% more than in September 2024.
These allocations are based on sales made in July by businesses that report tax monthly.
| Recipient | Sept. 2025 Allocations | Change from Sept. 2024 | Year-to-Date Change |
| Cities | $755.2M | ↑3.4% | ↑4.2% |
| Transit Systems | $253.6M | ↑6.3% | ↑4.0% |
| Counties | $78.0M | ↑10.0% | ↑5.5% |
| Special Purpose Districts | $123.0M | ↑12.5% | ↑9.8% |
| Total | $1.2B | ↑5.3% | ↑4.8% |
More details can be found on the Comptroller’s Monthly Sales Tax Allocation Comparison Reports. The full press release can be found here.
Texas Maintains AAA Credit Rating from Major Agencies
Acting Comptroller Kelly Hancock announced that Texas obtained the highest possible credit rating (AAA/Aaa) from the major municipal credit rating agencies. These rating agencies are S&P Global Ratings, Fitch Ratings, Moody’s Investors Service and KBRA.
The agencies cite Texas’ diversified economy, steady population growth, strong fiscal reserves and disciplined financial practices in reaffirming the state’s credit standing.
Credit ratings serve as an independent assessment of the state’s financial condition. The AAA designation is the highest rating available and indicates to investors that Texas bonds are considered secure.
The full press release can be found here.
Texas Leads U.S. for Jobs Added Over Last Year
Following the release of July employment data by the U.S. Bureau of Labor Statistics (BLS), Governor Abbott highlighted Texas as the top state for jobs added over the past 12 months.
Texas added 232,500 nonfarm jobs from July 2024 to July 2025, more than any other state and outpacing the U.S. annual growth rate.
The full press release can be found here.
Texas Employment Forecast Softening According to Dallas Fed
According to the Texas Employment forecast, jobs will increase 1.5 percent in 2025, with an 80 percent confidence band of 1.1 to 1.9 percent. The data was released by the Federal Reserve Bank of Dallas.
This is down 1.7 percent from last month’s forecast.
Additionally, the report highlighted the following figures:
- The forecast suggests 208,300 jobs will be added in the state this year, and employment in December 2025 will be 14.4 million.
- Texas employment increased by an annualized 0.9 percent in July after a decline of 1.6 percent in June, which was revised down.
For July, the statewide unemployment rate was unchanged at 4 percent.
More employment and economic data can be found here.
The full press release can be found here.
