How to Navigate Texas’ Job Market After a Slower Jobs Report

If you’ve been following recent employment trends in Texas, you may have noticed that job growth has shown signs of slowing down this year. The June labor market report revealed the first statewide job decline in a year, spurring questions and concerns among job seekers about the right strategies for landing a new position. However, understanding the details behind these numbers and adopting a focused job search approach can help you rise above market uncertainty.

Key Takeaways from Recent Jobs Data

While Texas is still forecasted to add jobs in 2025, growth is slightly below the long-term trend. Analysts project the state will increase employment by about 1.7%, translating to more than 244,000 new jobs for the year. Despite this positive overall trajectory, June saw a loss of roughly 15,500 positions—marking an annualized decline and broadly affecting most sectors. Oil and gas, along with professional business services, experienced the most significant reductions, while positives were seen in information services, education and health, and government. Notably, employment fell in every major metropolitan area except San Antonio.

Despite the recent slowdown, Texas’ civilian labor force reached a new record high and its annual nonfarm job growth continues to outpace national averages. Compared to the national level, Texas added more jobs over the past year and posted a slightly lower unemployment rate at around 4%. Certain sectors, like education, health services, construction, and leisure and hospitality, continue to show robust hiring activity. Austin remains a standout city, ranking in the Top 10 among large U.S. metros for year-over-year job growth and maintaining below-average unemployment.

What This Means for Job Seekers

The weakened jobs report shouldn’t deter you from pursuing new opportunities. Instead, it helps to shift your approach and focus on strategies that align with current hiring patterns:

• Target resilient sectors. With information services, education, health, government, and leisure/hospitality still adding jobs, consider exploring openings in these fields. Healthcare and education in particular have consistently demonstrated strong growth and stability.
• Stay informed about local trends. Job growth and opportunities can be highly regional. For example, Austin and San Antonio have outperformed other parts of Texas in both job creation and unemployment rates, making these cities attractive targets for job seekers.
• Update your skills. The job market is evolving, and employers value adaptability. Identify the most in-demand skills—such as digital literacy, healthcare certifications, or bilingual capabilities—and invest time in professional development.
• Use state resources. The Texas Workforce Commission offers a range of tools and programs to help connect job seekers with employers, including job boards, resume workshops, and retraining opportunities.
• Network strategically. Reach out to industry professionals, attend virtual or in-person networking events, and engage with professional associations in your targeted field.

Adjusting Expectations and Maintaining Flexibility

Uncertainty remains a fixture of economic forecasts, partly due to ongoing global factors such as trade tariffs, supply chain disruptions, and fluctuating oil prices. Employers may respond to these headwinds by slowing hiring temporarily, but they are also adapting in search of qualified candidates. Demonstrating flexibility—such as being open to contract work, gig positions, or remote roles—can expand your options and provide valuable experience during periods of market softness.

Looking Forward: Is the Labor Market Still Strong?

While the pace of job growth has cooled relative to previous years, Texas’ economic fundamentals remain sound. Experts believe growth may rebound slightly in the second half of the year, particularly if key sectors like government and health services continue to expand. Job seekers willing to diversify their search and upskill can still find success, even in a less robust market.

Practical Tips for Texas Job Seekers Now:

• Research industry-specific trends to target hiring sectors.
• Tailor your resume and applications to reflect the latest skill demands.
• Leverage state and local employment agencies for job leads and resources.
• Network consistently with professionals in thriving industries.
• Stay flexible about work arrangements, locations, and contract types.

The Texas job market may have cooled, but opportunities continue to exist—especially for those who are proactive, informed, and adaptable. By positioning yourself in growth sectors, staying connected, and continually updating your skills, you’ll be well-equipped to navigate the current labor landscape and emerge successful, even after a weaker jobs report.