AUSTIN, Texas - The Texas Employment Forecast released by the Federal Reserve Bank of Dallas indicates that job growth has slowed in Texas, despite the state continuing to outpace the nation’s annual growth rate.
Data compiled by the Texas Workforce Commission last week showed that 15,800 people joined the workforce in September, but the Dallas Fed’s report notes that the state also lost 18,900 jobs that month.
Dallas Fed says job growth is ‘well below’ state's historical average
What they're saying:
"Texas employment declined in September, slowing year-to-date job growth to 0.8 percent, well below the state’s long-running average of 2 percent," said Luis Torres, Dallas Fed senior business economist, in a news release.
According to Torres, employment declined in most sectors. Government and construction jobs made up the largest decline in September, while manufacturing remained a bright spot, partly due to oil and gas activity and the expansion of artificial intelligence.
"The moderation in job growth is consistent with current labor supply constraints that partly result from sharply lower immigration," Torres added.
Texas outpaces nation in job growth as over 15,000 people join work force: report
Texas is outpacing the nation's annual job growth rate by 0.8 percentage points, according to data released by the Texas Workforce Commission.
Dallas Fed lowers Texas employment forecast
Dig deeper:
The latest Texas Employment Forecast predicts that jobs will increase 0.9 percent in 2026, which is a decrease from the previous month’s forecast.
The forecast also suggests employment will be 14.5 million in December. The statewide unemployment rate has remained at 4.4%.
Governor highlights data showing job growth outpaces national rate
The other side:
Texas Gov. Greg Abbott previously pointed to the labor market data released by the TWC as a sign of the strength of the Texas economy. The data highlighted 154,300 non-farm jobs that were added over the past year, putting Texas’ annual job growth rate 0.8 percentage points above the national rate.
"Texas is where opportunity knows no bounds," Abbott said in a news release. "With the best business climate and strongest workforce in America, Texas grows jobs faster than the nation as a whole and wages have risen to an all-time high. Texas truly is the best place to live, work, build a business, and raise a family."
The Source: The information in this article comes from the Texas Employment Forecast released by the Dallas Fed, along with previous Fox Local reporting.