Outlook for the Texas Economy

Texas total nonfarm employment finished the year with strong growth. December’s unemployment rate and labor participation rate held steady at November levels. Overall inflation continued to expand.

The Texas job market made minor gains, adding less than 1 percent to employment. Unemployment ticked up to 4.2 percent after settling at 4.1 percent since July.

Texas total nonfarm employment dipped in October after two months of growth. Despite the loss of jobs, the unemployment rate held steady at 4.1 percent and the labor force participation rate climbed 64.6 percent. Inflation remained resilient and failed to decrease toward the 2 percent target rate.   

Texas total nonfarm employment expanded for the second consecutive month, but the unemployment rate remained steady at 4.1 percent for the third month in a row. The inflation rate continues to make progress with the Consumer Price Index (CPI) dropping to 2.4 percent year over year (YOY) in September from 2.5 percent YOY in August. Home sales bounced back after falling in August.

Texas total nonfarm employment grew in August following two months of decline. The unemployment rate remained at 4.1 percent for the second consecutive month. The rate of inflation continues to make progress with the Consumer Price Index (CPI) dropping to 2.5 percent year over year (YOY) in August from 2.9 percent YOY in July. Meanwhile, home sales fell in August.

Texas total nonfarm employment fell for the second consecutive month. The unemployment rate increased to 4.1 percent after sitting for three months at 4 percent.

Total Texas employment was unchanged from May while overall inflation decreased for the first time since May 2020. Persistently high mortgage rates played a major role in home sales declining in June, when home sales normally accelerate. Despite the plunge in sales, home prices fell to a much lesser extent.

The Texas economy has remained resilient despite high interest rates. Most of May’s employment growth was in professional and business services as per usual. The unemployment rate has remained unchanged since the beginning of 2024.

The Texas economy has remained resilient despite high inflation rates. Most of April’s employment growth was mostly in education and health services. The unemployment rate has remained unchanged for the last six months.

The Texas economy has remained resilient despite high inflation rates. Employment has remained steady with professional and business services driving most of the monthly employment gains. The unemployment rate has remained unchanged for the last six months. Inflation has increased by 3 percent and is likely to remain at high levels until later this year.

The Texas economy remains resilient despite high interest rates. Employment skyrocketed and there is still a high participation rate. Home sales increased while the ten- and 30-year rates remained elevated. Texas consumer confidence fell as economic growth was stagnant.

Texas consumers remained confident in the economy with consumer confidence rising for the second consecutive month. The labor market started the year with slower growth with the Fed pausing rate hikes at a 23-year high.