(The Center Square) – The private sector continues to fuel job growth in Texas as the state continues to outpace the national job growth rate. 

Texas’ unemployment rate remains higher than the national rate and Texas’ oil and natural gas industry continues to report job losses.

Texas added 1,600 nonfarm jobs in July to reach a total of 14,468,000 positions, according to new labor data released by the Texas Workforce Commission. Over the year, the state added 165,600 jobs for an annual growth rate of 1.2%, outpacing the national rate by one point.

 

Texas’ civilian labor force totaled 15,915,600 after adding 10,800 people over the month. Over the year, it added 17,800 people, according to the data.

 

“The hard work of Texans powers America’s most dynamic economy,” Gov. Greg Abbott said in a statement. “Our skilled workforce and best-in-the-nation business climate gives innovative job creators the confidence to invest in Texas. That is why Texas leads every state in annual job gains and sets the pace for business expansion.”

“The addition of more than 165,000 jobs over the last year highlights the growth of the Texas economy and the employers who drive it,” TWC Chairman Joe Esparza said. “By offering resources like our ASCEND grant and Skills for Success program, TWC is ensuring Texas’ workforce development efforts evolve in stride with the needs of our private sector partners.”

 

The Private Education and Health Services industry reported the largest private sector over-the-month increase in July after adding 5,900 jobs, the TWC notes. Professional and Business Services added 3,600 jobs over the month followed by Leisure and Hospitality’s additional 3,400.

 

“With our labor force expanding by 10,800 people in July, it is evident that the volume of opportunities in Texas is a powerful draw for the American workforce,” TWC Commissioner Representing Labor Alberto Treviño III said. “To sustain this momentum, TWC is committed to investing in the success of all workers, utilizing programs like Project Search to provide the vocational rehabilitation and training necessary for Texans of all abilities to thrive.”

The outlier was the Texas oil and gas industry, which reported 1,200 job losses over the month. This includes 300 jobs lost in extraction and 900 in the service sector, according to the data. 

Texas’ upstream employment was higher last month than it was in January but the two most recent months point to a weakening trend. 

The upstream sector includes oil and natural gas extraction and related support activities. It excludes refining, petrochemicals, pipelines, and equipment manufacturing, which support hundreds of thousands of additional jobs in Texas.

In recent months, the industry reported gaining jobs in the service sector and losing hundreds of jobs each month in the upstream sector, The Center Square reported. In April, the upstream sector reported the most job losses this year of 1,300, The Center Square reported. 

In June, the industry reported 900 job losses in extraction, The Center Square reported. 

Texas’ not seasonally adjusted unemployment rate of 4.8% remained higher than the national rate of 4.4%.

The same metropolitan statistical areas (MSA) reported the lowest and highest unemployment rates as in previous months. 

The Midland MSA reported the lowest not seasonally adjusted unemployment rate of 3.4%. Abilene and San Angelo MSAs were 3.9% and 3.8%, respectively, according to the data.

The MSAs reporting the highest unemployment rates were again Eagle Pass (8.3%), Brownsville-Harlingen (7%) and McAllen-Edinburg-Mission’s 6.8%.  

Texas has gained more than 2.6 million jobs since Abbott’s been in office since 2015. Texas is now home to 57 Fortune 500 headquarters, leading the country with the most headquarters. The Texas Stock Exchange also launched this month. Texas is also home to more than 3.5 million small businesses. 

Since Abbott’s been in office, the Texas economy has expanded from the 12th-largest to the eighth-largest economy compared to the economies of other countries.