The job market in Texas is a little softer than last year, according to the annual employment forecast from the Federal Reserve Bank of Dallas.

In 2025, the Dallas Fed expects about 225,000 new jobs to be added, slightly less than the 244,000 added in 2024.

The forecasted growth would mean there were roughly 14.5 million people employed in the state by the end of the year.

Economists said jobs in oil and gas, financial services, and construction were large contributors last year, while job growth in trade, transportation, leisure, hospitality, and government slowed notably.

The forecast crowned El Paso as the leading metropolitan area in employment expansion in 2024, with growth of 2.1%. Among smaller metros, Beaumont–Port Arthur took the lead with 4.9% job growth.

The Dallas Fed has more about the Texas Employment Forecast and additional information on seasonally adjusted and benchmarked Texas jobs data and metro unemployment rates.