Texas added more jobs than any other state during the 12 months ending in July 2026, gaining 165,600 nonfarm positions. For public pension trustees and administrators, the government-workforce trend in Texas also deserves attention. Government employment declined during the same period, according to an announcement from Gov. Greg Abbott, while detailed federal data show the decrease totaled 4,800 jobs.

Texas had nearly 14.47 million nonfarm jobs in July, an increase of 1.2% from July 2025. That growth rate was a full percentage point above the national rate, according to the U.S. Bureau of Labor Statistics’ July report.

Professional and business services, leisure and hospitality, and construction recorded the fastest annual growth rates in Texas, according to the Texas Workforce Commission.

Government employment moved in the opposite direction. Abbott’s announcement noted that government services declined during the 12-month period but did not quantify the change. Detailed Bureau of Labor Statistics industry data show that seasonally adjusted government employment in Texas declined from approximately 2.13 million jobs in July 2025 to 2.126 million in July 2026. That represents a decrease of 4,800 jobs, or about 0.2%.

Approximately 15.21 million Texans were employed in July, including the self-employed. Another estimated 708,400 were unemployed but remained in the labor force, generally meaning they were available for work and actively seeking employment. Together, those groups brought the state’s civilian labor force to nearly 15.92 million. Texas’ unemployment rate was 4.5%.

The nonfarm payroll and labor force totals measure different things. The payroll figure counts jobs reported by employers, while labor-force data count people based on where they live and include self-employed workers.

For public pension systems, changes in government staffing and covered payroll can affect active membership and contribution patterns. The statewide government-employment figure, however, includes a broad range of public employers and does not show what is happening within any individual municipality or retirement system.

Trustees and administrators may want to compare the statewide findings with changes in their own systems’ active membership, covered payroll, retirements, and employer vacancies. Those local measures provide a clearer picture of how workforce trends may affect a pension fund.

The Texas Workforce Commission and the U.S. Bureau of Labor Statistics released the July labor market data. Abbott highlighted the statewide findings, including the decline in government services, in an Aug. 21 announcement.

About the Author: Allen Jones is the director of communications and event marketing for TEXPERS, where he leads editorial strategy, member communications, conference marketing, and digital engagement initiatives for Texas public employee retirement systems. He began his journalism career in 1998 and has worked in journalism and communications for more than 25 years.