Texas Leads U.S. Job Growth Thanks to a Business-Driven Investment Environment

Texas closed 2025 at the forefront of U.S. employment growth, not by coincidence, but as the direct result of a competitive, pro-business environment designed to attract investment and support companies at scale.

According to the latest federal employment data, Texas recorded the largest annual increase in nonfarm jobs in the country, setting new historic highs across multiple labor market indicators. These results reflect the effectiveness of the state’s long-term strategy focused on infrastructure, workforce development, and a regulatory framework that favors business expansion.

Record Workforce and Employment Levels

Between December 2024 and December 2025, Texas added 132,500 new jobs, outperforming every other U.S. state and exceeding the national job growth rate. This surge pushed employment and workforce participation to record levels.

• The Texas labor force reached 15.96 million people, the highest in state history.
• Nonfarm employment climbed to a new peak of 14.34 million jobs, following a monthly gain of nearly 20,000 positions.

These figures underscore how targeted policies and sustained investment have translated directly into job creation.

A Competitive Platform for Expansion

Texas’ employment growth is closely tied to the advantages it offers companies across key sectors such as manufacturing, logistics, energy, technology, and professional services. Population growth, continuous infrastructure investment, and strong workforce pipelines have positioned the state as a preferred destination for domestic and international firms seeking long-term certainty.

The state’s 4.3% unemployment rate, below the national average of 4.4%, further highlights a healthy and resilient labor market supported by active business demand.

Closing 2025 with historic employment levels confirms Texas’ role as one of the most dynamic labor markets in North America. As companies continue to relocate, expand operations, and invest in advanced industries, the state’s ability to convert investment advantages into real workforce growth will remain a central driver of competitiveness in 2026 and beyond.

For Rio South Texas Region, where infrastructure, talent, cross-border connectivity, and a pro-business environment align, this momentum represents a clear opportunity to capture the actual and next wave of industrial and economic growth.

If your company is evaluating expansion, relocation, or nearshoring strategies, now is the moment to act. Council for South Texas Economic Progress (COSTEP) works alongside investors and companies to identify the right location, incentives, partners, and talent to ensure a smooth and strategic entry into the region.

Rio South Texas Region: One Region. Two Countries. One Future.