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Texas Job Market Expands Again in November 2023, Surpassing Growth Benchmarks

by Texas Recap Contributor
Pyramid

On November 22, 2023, the Texas Workforce Commission reported that the state added 9,100 seasonally adjusted nonfarm jobs in November, continuing its upward trajectory in workforce development and economic resilience. This marks yet another chapter in Texas’ consistent job growth, reinforcing its reputation as one of the most robust labor markets in the nation.

The state’s civilian labor force also grew significantly, expanding by 39,100 individuals in the same month. This increase pushed the total labor force to a record-setting 15,536,100 people, representing the 11th consecutive month of growth. These figures highlight not just job creation but also increasing workforce participation, a key indicator of economic vitality.

From November 2022 to November 2023, Texas added 274,300 jobs—a 2.0% annual growth rate for nonfarm employment. This year-over-year growth surpasses the national average by 0.6 percentage points, reflecting both the diversity and resilience of Texas’ economy. Industries across the board have contributed to this expansion, with notable gains in education, health services, and financial activities.

In terms of sector performance, the Private Education and Health Services industry led monthly gains, adding 5,900 new jobs in November. This surge reflects both rising demand for healthcare and educational services and Texas’ efforts to invest in public wellbeing and long-term workforce development. Government employment followed with an increase of 3,500 positions, while Financial Activities saw a rise of 3,000 jobs, highlighting ongoing strength in banking, insurance, and real estate services.

Though the unemployment rate ticked up slightly to 4.2% in November, this change is often seen in growing labor markets where more people are entering or re-entering the workforce. An increasing unemployment rate in this context can signal rising optimism among job seekers, not necessarily economic weakness. Employers across the state are actively hiring, and the competition for skilled labor remains high in many regions.

At the regional level, labor market conditions varied significantly. Midland posted the lowest unemployment rate among Texas metros at 2.8%, indicating strong job demand and a tight labor supply, particularly in industries like oil and gas. In contrast, the McAllen-Edinburg-Mission area recorded the highest jobless rate at 6.1%, reflecting ongoing challenges in economic diversification and workforce training.

The consistent job creation and labor force expansion underscore Texas’ strategic approach to economic development. State policies supporting business growth, infrastructure investment, and workforce training programs have contributed to this continued success. Additionally, Texas’ relatively low cost of living and favorable tax environment continue to attract both businesses and workers.

Demographic trends also play a role. The state has seen a steady influx of new residents, many of whom bring specialized skills or entrepreneurial ambitions. This migration supports consumer demand and fosters innovation across industries, from technology and healthcare to logistics and construction.

Looking ahead, economists expect the Texas job market to remain strong, though challenges such as inflation, interest rate fluctuations, and global economic uncertainties could introduce volatility. However, the state’s diversified economy—with strengths in energy, manufacturing, technology, and services—positions it well to adapt and continue growing.

Employers and job seekers alike are encouraged to take advantage of various state programs designed to match talent with opportunity. Workforce development initiatives, including training grants and apprenticeship support, are helping Texans build the skills needed for high-demand jobs.

November’s job data reinforces Texas’ role as a national leader in employment growth and economic opportunity. As 2024 approaches, the state remains focused on leveraging its advantages to support inclusive, sustainable workforce development.

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