Texas's labor market: 165,600 more jobs, a rising jobless rate, and the plants of 2027.
C3 Workforce publishes labor market research for the markets our clients and candidates ask about most. Here is Texas, on the July 2026 data: the numbers, what the Dallas Fed is hearing from manufacturers and staffing firms, the plants under construction in Fort Worth, San Antonio and Houston, what employers pay, and the rules that make Texas different.
Sources: Texas Workforce Commission, Texas labor market release for July 2026, August 21, 2026; BLS Economy at a Glance, Texas, July 2026 preliminary; Federal Reserve Bank of Dallas, Texas Economic Indicators, September 10, 2026 (smoothed average hourly earnings, year over year).
What is happening in Texas right now.
Seven things the data says, with sources. Texas is growing faster than the country and its unemployment rate is still rising, so both facts get their numbers.
Start with the pace. Texas had 14,468,000 nonfarm jobs in July 2026, up 1,600 over the month and 165,600 (1.2 percent) over the year, among the largest gains of any state. The unemployment rate was 4.5 percent, up from 4.2 percent in July 2025, and the civilian labor force reached 15,915,600. The Dallas Fed's read is that hiring has cooled from its spring pace: July jobs fell 0.1 percent annualized, April to July ran 1.5 percent, and the year to date pace is 2.2 percent. Its official forecast, published August 21, 2026, calls for 1.7 percent job growth in 2026, or 241,300 jobs, below the 2 percent long run average.
Sources: Texas Workforce Commission, August 21, 2026; BLS Economy at a Glance, Texas, July 2026 preliminary; Federal Reserve Bank of Dallas, Texas Economic Indicators, September 10, 2026, and Texas Employment Forecast, August 21, 2026.
Manufacturers are producing more with the same people. Manufacturing employment was 979,700 in July 2026, down 0.6 percent over the year, while construction was 921,700, up 1.9 percent, and trade, transportation and utilities was 2,817,600, up 1.1 percent. The Dallas Fed's Texas Manufacturing Outlook Survey for August 2026 showed the production index at 16.1 (up 6.0), new orders at 22.0 (up 15.6), capacity utilization at 12.8 and shipments at 14.1, while the employment index slipped 4.2 points to 8.0 and hours worked came in at 5.9. Wages and benefits pressure eased to 21.1. Manufacturers expect to add people: the six month ahead employment index jumped 14.4 points to 34.5.
Sources: BLS Economy at a Glance, Texas, July 2026 preliminary; Federal Reserve Bank of Dallas, Texas Manufacturing Outlook Survey, August 2026, collected August 18 to 26, released August 31, 2026.
Wages are outrunning the nation and staffing demand is broad. Average hourly earnings for all private employees were $36.09 in July 2026; the Dallas Fed's smoothed series was $35.82, up 3.9 percent over the year against 3.3 percent nationally. In the July 2026 Beige Book, Eleventh District staffing firms reported broad based demand increases and one called June its best month since before the pandemic. Firms expect 3.5 percent wage growth over the next year, up from 3.1 percent in March. Staffing companies said they had raised fees to maximum levels citing shortages of experienced workers, and the Fed summarized the hiring problem as an aging workforce and reluctance among qualified candidates to switch jobs in an uncertain environment.
Sources: BLS CES series SMU48000000500000003 via FRED, July 2026; Federal Reserve Bank of Dallas, Texas Economic Indicators, September 10, 2026; Federal Reserve Beige Book, Eleventh District, July 15, 2026.
Fort Worth is the aerospace and electronics story. Lockheed Martin's Fort Worth plant posted a record F35 production year in 2025, and IAM District 776 members ratified a five year contract on June 14, 2026, removing strike risk at the region's largest aerospace employer; June 2026 awards included $879 million for Fort Worth built F35s, $991 million for electronic warfare upgrades and a $2.29 billion sustainment contract. Bell Textron laid off 285 employees in Texas and Kansas in June as the MV75 program shifts toward production and is retrofitting a north Fort Worth facility for Army aircraft parts. New electronics plants are stacking up: Celestica chose Fort Worth for an $876 million campus with more than 1,700 jobs, Wistron opened a Fort Worth plant producing NVIDIA AI systems in July, Fort Worth approved incentives for a Mach Industries drone factory that could bring 1,000 jobs, and Carrier is weighing a $433 million DFW plant to build data center cooling equipment.
Sources: Fort Worth Report, January 11, 2026 and August 12, 2026; IAM Union and Fort Worth Report, June 14, 2026; WFAA and Fort Worth Star Telegram, June 2026; Fort Worth Report and Dallas Morning News, June 3 to 5, 2026; Dallas Business Journal and WFAA, May 14 to 15, 2026; NVIDIA, July 21, 2026; Dallas Business Journal, August 25, 2026.
San Antonio has the two largest job announcements in the state this year. Toyota will spend $3.6 billion to move Tacoma production from Mexico to its San Antonio plant, 2,000 jobs, with the city offering a $142.7 million incentive package; Toyota's new rear axle plant was already hiring more than 400 in March. IEM confirmed a $200 million switchgear and power distribution plant at Brooks with up to 3,000 jobs and a $3.36 million Texas Enterprise Fund grant, described by the regional development group as the largest job producing investment in more than two decades. JCB is hiring for its first U.S. plant on the Southside, 1,500 jobs, and H One is building a $100 million auto parts plant in Seguin with 170 jobs.
Sources: Reuters, CNBC and San Antonio Report, July 6 to 7, 2026; San Antonio Express News, June 11, 2026; WOAI and Texas Public Radio, March 2, 2026; Office of the Texas Governor, August 25, 2026; MySA and KENS 5, October 2025 to February 2026; KENS 5, July 8, 2026.
Houston and Austin are construction markets first. Houston construction employment was up 5.2 percent over the year in July 2026 and Austin's up 5.5 percent, with Austin manufacturing up 1.6 percent. Bristol Myers Squibb is building a $2.3 billion campus in Houston with 500 jobs, Eli Lilly a $6.5 billion to $7 billion plant announced in September 2025, and Apple opened an Advanced Manufacturing Center in Houston in August 2026. SpaceX and Tesla filed for a $16.8 billion first phase chip plant in Grimes County between Houston and College Station, and Daikin said it had 400 openings at its Waller campus. In Abilene, Stargate construction runs through early 2027 with more than 5,000 construction workers reported on site in 2025, and the Texas Tribune reported data centers and home builders competing for the same electricians. Port Houston's container volumes fell 6 percent in July as the import surge cooled.
Sources: BLS Economy at a Glance, Houston and Austin, July 2026 preliminary; Bristol Myers Squibb and Office of the Texas Governor, August 10, 2026; Office of the Texas Governor, September 23, 2025; Apple, August 13, 2026; KHOU and Manufacturing Dive, August 6 to 7, 2026; Chron, June 13, 2026; KTXS, March 5, 2026; BigCountryHomepage, September 17, 2025; Texas Tribune, April 28, 2026; FreightWaves, August 26, 2026.
Layoffs are concentrated in offices, not plants. Conifer Health Solutions cut 1,037 in September after a contract breakup, JPMorgan Chase closed a Plano call center with 244 jobs in June, T Mobile cut 113 in North Texas in August, and the Dallas Morning News counted nearly 1,500 layoffs at three North Texas companies on September 9, 2026. Chron reported nearly 30,000 Texans hit by layoffs in the first half of 2026. On the plant side, the notable cut is Bell's 285 program staff. Houston's 5.1 percent unemployment rate, the highest of the four big metros, is where the most available industrial labor sits.
Sources: Fierce Healthcare, September 8 to 10, 2026; CBS News, June 24, 2026; Dallas Morning News, August 12 and September 9, 2026; Chron, June 17, 2026; Fort Worth Report, June 2026; BLS Metropolitan Area Employment and Unemployment, July 2026 preliminary.
The Texas Triangle and the Gulf.
Where the plants are and how each metro is running, July 2026.
Dallas Fort Worth is the state's largest job market at 4,353,400 payroll jobs, with 313,700 in manufacturing. Fort Worth holds Lockheed Martin's F35 plant, Bell Textron, the Celestica and Wistron electronics campuses and Siemens' south Fort Worth switchgear plant; Airbus Helicopters builds in Grand Prairie; Raytheon is in McKinney and Dallas; MP Materials picked Northlake for its rare earth magnet campus; and AllianceTexas remains the region's inland port. GM's Arlington Assembly builds full size SUVs. Houston, at 3,497,700 jobs, pairs the port and the petrochemical belt with new pharmaceutical construction (Bristol Myers Squibb, Eli Lilly) and Apple's manufacturing center, and its construction employment is up 5.2 percent.
Sources: BLS Economy at a Glance, Dallas Fort Worth Arlington and Houston, July 2026 preliminary; Fort Worth Report; Dallas Business Journal, May 14, 2026; NVIDIA, July 21, 2026; MP Materials, February 26, 2026; Bristol Myers Squibb, August 10, 2026; Apple, August 13, 2026.
San Antonio (1,192,200 jobs) is turning into an automotive and heavy equipment center: Toyota's Tacoma expansion and rear axle plant, JCB's first U.S. factory on the Southside, IEM's switchgear plant at Brooks, Boeing's aircraft modification and sustainment work at Port San Antonio, and H One's parts plant 35 miles east in Seguin. Austin (1,421,700 jobs) is semiconductors and construction: Samsung Austin Semiconductor and its Taylor fab, Tesla's Gigafactory, and construction employment up 5.5 percent over the year. West of the Triangle, Abilene's Stargate data center campus runs construction into early 2027, and Midland's 3.4 percent unemployment rate is the lowest of any Texas metro.
Sources: BLS Economy at a Glance, San Antonio New Braunfels and Austin Round Rock San Marcos, July 2026 preliminary; Reuters, July 6, 2026; Office of the Texas Governor, August 25, 2026; KENS 5, July 8, 2026; The Next Web, July 20, 2026; KTXS, March 5, 2026; BLS Metropolitan Area Employment and Unemployment, July 2026 preliminary.
| Metro area | Unemployment, July 2026 | July 2025 | Payroll jobs, July 2026 | Change over year | Manufacturing jobs | Construction jobs |
|---|---|---|---|---|---|---|
| Dallas Fort Worth Arlington | 4.6% | 4.2% | 4,353,400 | up 1.3% | 313,700 (down 0.7%) | 273,500 (up 2.0%) |
| Houston Pasadena The Woodlands | 5.1% | 4.8% | 3,497,700 | up 1.5% | 240,100 (down 0.8%) | 267,300 (up 5.2%) |
| Austin Round Rock San Marcos | 4.0% | 3.6% | 1,421,700 | up 1.7% | 87,000 (up 1.6%) | 99,100 (up 5.5%) |
| San Antonio New Braunfels | 4.7% | 4.2% | 1,192,200 | up 0.9% | 60,900 (up 0.3%) | 69,400 (down 0.3%) |
| Texas, seasonally adjusted | 4.5% | 4.2% | 14,468,000 | up 1.2% | 979,700 (down 0.6%) | 921,700 (up 1.9%) |
Sources: BLS Metropolitan Area Employment and Unemployment, July 2026 preliminary, not seasonally adjusted (metro rates); BLS Economy at a Glance, Dallas, Houston, Austin, San Antonio and Texas, July 2026 preliminary (payroll, manufacturing and construction jobs; metro construction figures are mining, logging and construction); Texas Workforce Commission, August 21, 2026 (state rate). Metro rates are not seasonally adjusted, the state rate is.
What employers in Texas pay, BLS medians.
Market benchmarks, not C3 pay rates. Hourly, statewide, the ten occupations our clients hire most, with the U.S. median for comparison. Texas machinists and aircraft trades earn above the national median, reflecting Fort Worth; entry production roles run below it.
| Occupation (SOC) | 10th | Median | 90th | Annual median | U.S. median |
|---|---|---|---|---|---|
| Team assemblers (51 2092) | $14.00 | $18.42 | $28.02 | $38,320 | $21.47 |
| Laborers and material movers (53 7062) | $14.06 | $18.05 | $24.11 | $37,540 | $19.35 |
| Forklift operators (53 7051) | $16.49 | $21.85 | $28.74 | $45,450 | $22.32 |
| Inspectors and testers (51 9061) | $15.48 | $22.22 | $37.77 | $46,210 | $23.35 |
| Welders and cutters (51 4121) | $18.45 | $25.64 | $38.58 | $53,340 | $25.84 |
| Electricians (47 2111) | $18.23 | $28.16 | $38.61 | $58,570 | $30.38 |
| Machinists (51 4041) | $18.56 | $28.45 | $39.94 | $59,180 | $28.24 |
| Industrial machinery mechanics (49 9041) | $19.99 | $29.78 | $46.04 | $61,930 | $31.02 |
| Aircraft structure and systems assemblers (51 2011) | $20.91 | $36.84 | $48.29 | $76,640 | $65,380 annual |
| Aircraft mechanics and service technicians (49 3011) | $23.36 | $40.60 | $58.74 | $84,440 | $38.40 |
Source: BLS Occupational Employment and Wage Statistics, May 2025, Texas statewide, via O*NET OnLine, accessed September 2026. The Dallas Fort Worth annual median for aircraft assemblers is $86,520. Welders earn an annual median of $63,470 in Odessa and $61,410 in Midland versus $39,710 in McAllen. Market benchmarks, not C3 pay rates.
Employer compliance in Texas.
The items that set your cost per hour and your paperwork in Texas. A starting point, not legal advice.
| Item | Texas rule | Source |
|---|---|---|
| Minimum wage | $7.25 per hour. Texas adopts the federal rate by reference; no change scheduled. | U.S. DOL state minimum wage table, July 1, 2026 |
| UI taxable wage base | $9,000 per employee. | Texas Workforce Commission, tax rate pages |
| UI tax rates, 2026 | Minimum 0.32 percent, maximum 6.32 percent, including a 0.21 percent replenishment tax, a 0.00 percent obligation assessment and a 0.10 percent employment and training investment assessment. New employers pay the greater of 2.7 percent or their industry average until experience rated. | Texas Workforce Commission |
| E Verify | Required for state agencies and their contractors (Texas Government Code Chapter 673). No private employer mandate; federal Form I 9 applies. | Texas statutes; verify wording before quoting |
| Workers compensation | Elective for private employers. Texas is the only state where private employers may opt out. Nonsubscribers must file with the Division of Workers' Compensation, post notices and report injuries with more than one day of lost time. | Texas Department of Insurance, Division of Workers' Compensation |
| Right to work | Yes (Texas Labor Code Chapter 101). | Texas statutes |
| Staffing licensing | Temporary help firms need no state license. Professional employer organizations are licensed under Labor Code Chapter 91. Temporary common worker employers (day labor halls) are regulated under Labor Code Chapter 92. | Texas statutes |
| Pay transparency | No statewide salary range or salary history law. | Research finding, September 2026 |
| Heat illness and local ordinances | No state heat standard. HB 2127, effective September 1, 2023, preempts local ordinances in fields the state regulates, which ended the Austin and Dallas construction rest break rules. Litigation over HB 2127 continued after 2023; verify current status. | Texas Legislature Online, 88th Legislature |
Compliance facts current as of September 13, 2026. Verify with the agency before relying on them for a specific decision.
Because Texas lets private employers opt out, a staffing firm operating here may or may not subscribe. If it does not, an injured temporary employee can sue in tort and your company can be pulled in. Before you sign, ask two things: does the firm subscribe to Texas workers compensation, and does the contract carry an alternate employer endorsement naming your company so the exclusive remedy protection reaches you. The Division of Workers' Compensation says nonsubscribers must file with the Division, post notices and report lost time injuries; ask to see that filing if the answer is no. What does not move: OSHA treats the host employer and the staffing agency as joint employers for worker safety regardless of insurance status.
Sources: Texas Department of Insurance, Division of Workers' Compensation, employer pages; OSHA Temporary Worker Initiative.
Texas headlines, summer 2026.
Eight dated items from our research feed, newest first.
Dallas Fed: Texas jobs slipped 0.1 percent annualized in July; wages up 3.9 percent over the year.
Texas hiring has cooled from its spring pace even as wages outrun the nation. Federal Reserve Bank of Dallas, Texas Economic Indicators.
Three North Texas companies announce nearly 1,500 layoffs.
White collar and health services cuts add to the DFW candidate pool while industrial demand holds. Dallas Morning News.
Texas manufacturing activity accelerates in August; employment index slips to 8.0.
Production and new orders jumped but hiring slowed: manufacturers are producing more with the same headcount. Federal Reserve Bank of Dallas, Texas Manufacturing Outlook Survey.
Port Houston container volumes fall 6 percent in July as the import surge cools.
A softer import cycle tempers Houston warehouse labor demand into fall. FreightWaves.
IEM confirms a $200 million plant at Brooks in San Antonio with up to 3,000 jobs.
The largest job announcement in San Antonio in two decades: switchgear assembly, wiring and test roles. Office of the Texas Governor.
Texas unemployment 4.5 percent in July; 14,468,000 jobs, up 165,600 over the year.
The state's own read on July. August data land September 18. Texas Workforce Commission.
SpaceX and Tesla to build a $16.8 billion semiconductor plant in Grimes County.
A mega fab between Houston and Austin will absorb thousands of trades workers through 2028. KHOU.
Toyota to build a $3.6 billion Texas expansion, shifting Tacoma production from Mexico to San Antonio.
2,000 assembly jobs plus the supplier ripple (H One in Seguin) through 2027 and 2028. Reuters.
Questions we get about Texas.
What is Texas's unemployment rate right now?
4.5 percent in July 2026, seasonally adjusted, up from 4.2 percent in July 2025 (Texas Workforce Commission, August 21, 2026). The U.S. rate was 4.1 percent. Texas added 165,600 payroll jobs over the year, 1.2 percent, among the largest state gains. August data are scheduled for release the week of September 18, 2026.
Is Texas manufacturing hiring in 2026?
Producing more with the same people, for now. Manufacturing employment was 979,700 in July 2026, down 0.6 percent over the year. The Dallas Fed's August 2026 manufacturing survey showed production and new orders jumping while the employment index slipped to 8.0; the six month ahead employment index rose to 34.5. Named projects with 2027 to 2028 start dates include Toyota's $3.6 billion Tacoma line in San Antonio (2,000 jobs), IEM at Brooks (up to 3,000) and Celestica in Fort Worth (1,700 plus).
Is workers compensation required in Texas?
No. Texas is the only state where private employers may opt out. Nonsubscribers must file with the Division of Workers' Compensation, post notices and report injuries with more than one day of lost time. In a staffing arrangement, ask whether the staffing firm subscribes and whether your contract carries an alternate employer endorsement naming your company. Source: Texas Department of Insurance, Division of Workers' Compensation.
Does Texas require E Verify for private employers?
No. Texas Government Code Chapter 673 requires E Verify for state agencies and their contractors only. There is no private employer mandate; the federal Form I 9 applies. Verify the statute wording before relying on it.
What is the Texas minimum wage in 2026?
$7.25 an hour. Texas adopts the federal rate by reference and no change is scheduled. Market rates run far above the floor: the BLS median for laborers and material movers in Texas was $18.05 an hour in May 2025, and the Dallas Fed reports Texas wages growing 3.9 percent over the year against 3.3 percent nationally.
Which Texas metro has the most available industrial labor?
Houston, on the July 2026 numbers. Its unemployment rate of 5.1 percent was the highest of the four big Texas metros, against 4.6 percent in Dallas Fort Worth, 4.7 in San Antonio and 4.0 in Austin, and Port Houston container volumes cooled 6 percent in July. Houston construction employment was still up 5.2 percent over the year.
Where does C3 Workforce staff in Texas?
Our recruiters and sales team cover Texas from the C3 Workforce headquarters in Livonia, Michigan: Dallas Fort Worth, Houston and the Gulf Coast, San Antonio and Seguin, and Austin along I 35. C3 is active in multiple markets across the country and does business in all 50 states. Call (734) 552-5731 or email info@c3workforce.com.
Dallas Fort Worth to the Gulf, and every exit on I 35.
Our recruiters and sales team cover Texas from the Livonia headquarters: Dallas Fort Worth, Houston, San Antonio and Austin. Tell us the role, the shift and the zip code. Quotes go out within 24 hours and every message gets a reply within one business day.
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Aerospace assembly and maintenance, electronics assembly and test, automotive and heavy equipment suppliers, switchgear and electrical manufacturing, distribution centers and food plants. The same screening and accountability as every other C3 market, with a national team behind it.
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