(The Center Square) – The Texas economy expanded to $2.9 trillion in 2025, faster than the growth of the national economy when adjusted for inflation.
Texas again reported job losses in February, the second month in a row after posting losses in January for the first time in recent history, The Center Square reported.
According to U.S. Bureau of Economic Analysis data, the Texas economy expanded to $2.9 trillion in 2025, based on Texas’ 2025 current-dollar gross domestic product. Texas’ economy also grew faster than the national economy in 2025 at a rate of 2.5% when adjusted for inflation, according to the data.
Gov. Greg Abbott attributed the economic expansion “to the productivity of our skilled workforce and the entrepreneurs and businesses investing here with confidence,” he said. “With the Best Business Climate in America and unmatched pro-growth policies, Texas is the premier destination for job creators from across the country and world. We will keep attracting world-class investment, create jobs, and expand opportunity for Texans for generations to come.”
If Texas were a country, it has the eighth-largest economy in the world based on preliminary International Monetary Fund 2025 current-dollar national GDP estimates, Abbott’s office says. According to this data, Texas’ economy grew at a faster rate than eight of the top 10 countries, it says.
Since Abbott’s been in office, the Texas economy has grown from $1.585 trillion in 2015 to $2.9 trillion in 2025. When adjusted for inflation, the state’s economy grew by 46% in 11 years, according to the data.
Abbott is running for his fourth term and is expected to be reelected in November. Once reelected, he will be the longest serving governor in state history.
In February, Texas again posted job losses. The state’s total number of nonfarm jobs totaled 14,354,600 after decreasing by 8,500 jobs in February, according to Texas Workforce Commission data. Over the year, Texas saw growth, adding 73,800 jobs. Texas’ annual nonfarm job growth rate was 0.5 percent, barely surpassing the national growth rate by 0.4%, according to U.S. Department of Labor data.
Texas’ civilian labor force totaled 15,941,800 in February after losing 13,400 jobs over the month. Over the year, Texas’ civilian labor force added 121,200 people.
“Texas’ over-the-year growth trajectory remains strong because we have cultivated a pro-business climate that helps employers grow and generate new opportunities for working Texans,” TWC Chairman Joe Esparza said. “The Texas Workforce Commission is investing strategically in programs that foster long-term economic prosperity across all regions of our state.”
Industries reporting the most growth were the Professional and Business Services industry (6,300 jobs added), Manufacturing (2,500 jobs added), Information (200 jobs added).
“The addition of more than 121,000 people to the labor force over the year reinforces the need to make sure all Texans can participate in – and benefit from – our evolving economy,” TWC Commissioner Representing Labor Alberto Treviño III said.
TWC Commissioner Representing the Public Brent Connett added that “The foundations of the Texas economy are strong, and our employers and workers are resilient and adaptable” and it was “encouraging to see robust growth surging across key industries like Construction and Professional and Business Services, signaling that there is ample cause for optimism.”
Texas’ not seasonally adjusted unemployment rate was 4.4% in February, lower than the national rate of 4.7%.
Metropolitan Statistical Areas that posted the highest unemployment rates in February were led by Eagle Pass (9.7%), followed by Brownsville-Harlingen (7%), McAllen-Edinburg-Mission (6.4%) and Beaumont-Port Arthur (5.5%). MSAs with the lowest unemployment rates were Midland (3.3%) and San Angelo (3.5%). Of Texas’ 28 MSAs, only seven had unemployment rates under 4%.
Employment data is being released one month late due to the federal government shutdown late last year.
