TWC Sets Stable Employer Tax Rate to Promote Continued Business Recovery
Texas Workforce Commission • June 15, 2021
Unemployment Insurance Tax rate for 2021 set at pre-pandemic level,
protecting Trust Fund solvency while reducing tax burden on Texas businesses
The Texas Workforce Commission (TWC) used legislative authority to set unemployment insurance (UI) tax rates for 2021 at a stable level, consistent with 2020 rates, to avoid burdening Texas businesses with a significant increase of taxes resulting from pandemic-related closures outside of their control.
“Texas employers continue to overcome the challenges of the past year and contribute to a strengthening economy,” said TWC Chairman Bryan Daniel. “Today’s action on UI taxes enables businesses to better focus resources on innovating and expanding jobs available to Texas workers.”
Employer-paid UI taxes replenish the Texas Unemployment Compensation Trust Fund, which provides temporary income for workers who lose their jobs through no fault of their own. Each employer’s UI tax rate is unique, tied to unemployment benefits paid to former employees. Absent today’s Commission action, most Texas employers would have seen significant increases in their tax obligation for 2021.
“Texas workers are eager to get back to work and help move our economy forward,” said TWC Commissioner Representing Labor Julian Alvarez. “This decision to keep taxes low will encourage hiring, and expand opportunities for working Texans.”
The Commission set the state’s UI replenishment tax rate to 0.18 percent, and the deficit tax rate to 0.0 percent. The Obligation Assessment was set to 0.03 percent to cover any federal interest due on Title XII loans due on September 30, 2021. The combination of the replenishment tax and obligation assessment equals the 2020 replenishment tax rate of 0.21 percent.
“This decision gives stability and predictability to our UI tax structure,” said TWC Commissioner Representing Employers Aaron Demerson. “Texas employers and Business leaders look forward to that stability especially after a year of rampant uncertainty. This gives them the capacity they need to hire, expand and get Texas’ economy back on track.”
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).
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).
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).
