TWC Lowers Taxes for Texas Employers in 2023

Texas Workforce Commission • January 11, 2023

The Texas Workforce Commission (TWC) announced the average unemployment insurance (UI) tax rate for all employers will be 1.16% for calendar year (CY) 2023. Last year, the average tax rate was 1.35%.

The minimum tax rate is paid by more than 370,000 employers, which represents 61.5% of experience-rated employers. The minimum UI tax rate paid by Texas employers in CY 2023 will be 0.23%, which is 0.08 percentage points lower than 0.31% in CY 2022. These employer-paid UI taxes replenish the Texas Unemployment Compensation Trust Fund, which provides temporary income for Texas workers who lose their jobs through no fault of their own.

An experience rating is determined by the amount of an employer’s taxable wages and the amount of UI benefits that have been paid to former employees and charged to the employer’s account for the last three years. An employer paying the standard minimum tax will pay $20.70 per employee in CY 2023 on the first $9,000 in wages per employee compared with $27.90 per employee in CY 2022. The average tax rate for experience-rated employers is 0.89%. The maximum UI tax rate, paid by 4.2% of Texas employers, will be 6.23%, down 0.08 percentage points from CY 2022 at 6.31%.

TWC is dedicated to finding ways to lower the financial impact of UI taxes on Texas employers. TWC and the state’s 28 local workforce boards are also committed to helping UI claimants return to work as soon as possible. Because the Texas Unemployment Compensation Trust Fund has risen above its statutory minimum required balance, TWC will not charge employers any deficit tax in 2023. More information about the components of the tax rate are on TWC’s website.


Wages often can be the largest portion of expenses for a business. As Texas business owners begin staffing plans for the next year, TWC invites businesses to access data from its annual Occupational Wage Survey, which can provide valuable insights on competitive wages for all types of positions for any area in Texas. Information gathered in the survey is confidential and is reported from Texas employers who participate in the survey. For more information or to participate and assist in making Texas more competitive in the labor marketplace, please contact us by emailing oesinfo@twc.texas.gov or by calling (800) 252-3616.

Over 26,000 Jobs Added as Texas Labor Market Continues Growth Streak

By Workforce Solutions East Texas • April 21, 2025
Texas' economy continued its strong performance in March, with the labor market achieving record highs in both total jobs and the size of the civilian labor force. Texas added 26,500 positions over the month to reach a total of 14,282,600 nonfarm jobs. The state added 192,100 jobs over the year, bringing the annual nonfarm growth rate to 1.4 percent which outpaced the national growth rate by 0.2 percentage points. Texas’ civilian labor force achieved another new record high of 15,778,500 after adding 8,400 people over the month, marking 57 of 59 months of growth. Over the year, Texas’ civilian labor force has added 301,400 people. The seasonally adjusted unemployment rate in Texas registered at 4.1 percent. “Texas continues to lead the nation and break records for economic growth,” said TWC Chairman Bryan Daniel. “With 26,500 positions added in March, TWC continues to connect job seekers and employers to keep Texas working.” The Private Education and Health Services industry had the largest over-the-month increase in March after adding 9,500 jobs. Construction added 8,500 jobs over the month, and Trade, Transportation, and Utilities added 6,100. In addition, the Construction industry grew by 3.4 percent over the year in Texas and outperformed the industry’s growth rate nationally by 1.6 percentage points. “The robust Texas economy continues to create opportunities for our workforce, as evidenced by over 544,000 job postings in March, despite record employment,” noted TWC Commissioner Representing Labor Alberto Treviño III. “TWC is committed to ensuring Texans can capitalize on this economic momentum by providing services like career counseling, job search assistance, and skills training, helping them develop a clear path to career success.” The Midland Metropolitan Statistical Area (MSA) had the lowest unemployment rate among Texas MSAs with a not seasonally adjusted rate of 2.9 percent in March, followed by the Amarillo MSA at 3.1 percent and the San Angelo MSA at 3.1 percent. “Texas is outpacing the nation in various industries, reinforcing the state’s reputation across the world as the best for doing business,” said TWC Commissioner Representing Employers Joe Esparza. “TWC is committed to investing in innovative programs and partnerships that ensure Texas employers have the workforce to grow in today’s evolving market.” Employment estimates released by TWC are produced in cooperation with the U.S. Department of Labor’s Bureau of Labor Statistics. * All estimates are subject to revision. To access this and more employment data, visit TexasLMI.com . The Texas Labor Market Information Data for April is scheduled to be released on Friday, May 16, 2025, at 9:00 a.m. (CT).

Texas Job Growth Continues in February, More Than 20,000 Jobs Added

By Workforce Solutions East Texas • March 31, 2025
The Texas labor market continued to achieve record highs for both jobs and the civilian labor force in February. The state added 20,100 positions over the month to reach a total of 14,254,200 nonfarm jobs. Texas added 182,300 jobs from February 2024 to February 2025, bringing the annual nonfarm growth rate to 1.3 percent and outpacing the national growth rate by 0.1 percentage points. February marks 56 of 58 months of growth for Texas’ civilian labor force, which achieved another new record high of 15,770,300 after adding 19,500 people over the month. Over the year, Texas’ civilian labor force has added 334,800 people. The seasonally adjusted unemployment rate in Texas registered at 4.1 percent. “With more than 20,000 jobs added the past month, Texas continues to see solid economic growth including the labor force,” said TWC Chairman Bryan Daniel. “TWC supports this growth with strategic training programs designed to address the needs of employers and connect workers to successful career pathways.” The Trade, Transportation, and Utilities industry had the largest over-the-month increase in February after adding 7,400 jobs. In addition, Leisure and Hospitality added 6,000 jobs over the month and Construction added 5,200. The Financial Activities industry grew by 2.6 percent over the year in Texas and outperformed the industry’s growth rate nationally by 1.7 percentage points. “Continued labor market growth through February is fueling economic expansion across Texas, creating more opportunities for Texans to find meaningful employment and improve their quality of life,” said TWC Commissioner Representing Labor Alberto Treviño III. “To ensure all segments of the Texas workforce can benefit from this growth, TWC remains committed to investing in essential resources like career training, vocational rehabilitation, child care, and adult education, empowering individuals to capitalize on these new opportunities and contribute to our state's continued prosperity.” The Midland Metropolitan Statistical Area (MSA) had the lowest unemployment rate among Texas MSAs with a not seasonally adjusted rate of 3.2 percent in February, followed by the Amarillo MSA at 3.3 percent and the San Angelo MSA at 3.4 percent. “Texas led all states with more than 182,000 jobs added over the year because Texas employers continue to generate new opportunities,” said TWC Commissioner Representing Employers Joe Esparza. “More Texans are working than at any point in the state’s history, and TWC can support employers by providing resources and an upskilled workforce to power their momentum.” Employment estimates released by TWC are produced in cooperation with the U.S. Department of Labor’s Bureau of Labor Statistics. *All estimates are subject to revision. To access this and more employment data, visit TexasLMI.com. The Texas Labor Market Information Data for March is scheduled to be released on Friday, April 18, 2025, at 9:00 a.m. (CT).

Texas Labor Market Expansion Continues into 2025

By Lindsay Vanderbilt • March 17, 2025
The Texas labor market achieved new record highs for both jobs and the civilian labor force in January. The state added 27,900 positions over the month, reaching a total of 14,236,400 nonfarm jobs. Texas added 187,700 jobs from January 2024 to January 2025, bringing the annual nonfarm growth rate to 1.3 percent. January marks 55 of 57 months of growth for Texas’ civilian labor force, which achieved another new record high of 15,750,800 after adding 23,100 people over the month. Over the year, Texas’ civilian labor force has added 351,200 people. The seasonally adjusted unemployment rate in Texas registered at 4.1 percent. “With more than 187,000 jobs added over the year, Texas’ continued growth shows the strength of the Texas economy,” said TWC Chairman Bryan Daniel. “Our commitment to a skilled workforce is essential to the state’s continued economic success.” The Private Education and Health Services industry had the largest over-the-month increase in January after adding 9,700 jobs. In addition, Professional and Business Services added 3,700 jobs over the month and Mining and Logging added 2,300. “New opportunities are emerging every day in Texas, and we must be prepared to seize them as a pathway to long-term growth,” said TWC Commissioner Representing Labor, Alberto Treviño III. “TWC recognizes that the needs of job seekers are diverse, and we offer a variety of programs to help Texans achieve their career goals.” The Midland Metropolitan Statistical Area (MSA) had the lowest unemployment rate among Texas MSAs with a not seasonally adjusted rate of 3.0 percent in January, followed by the Amarillo MSA at 3.1 percent and the San Angelo MSA at 3.3 percent. “Texas continues to attract new and expanding businesses across a wide range of industries,” said TWC Commissioner Representing Employers Joe Esparza. “We encourage employers to explore TWC programs like the Skills Development Fund, so they can develop their workforce to compete in a global market.” Employment estimates released by TWC are produced in cooperation with the U.S. Department of Labor’s Bureau of Labor Statistics. * All estimates are subject to revision. To access this and more employment data, visit TexasLMI.com . The Texas Labor Market Information Data for February is scheduled to be released on Friday, March 28, 2025, at 9:00 a.m. (CT).
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