Texas’ labor market is entering a new phase of growth in 2026, offering job seekers clear signals on where opportunities are strongest. According to the Federal Reserve Bank of Dallas’ Texas Employment Forecast, jobs in the state are expected to increase 1.1 percent this year, adding roughly 154,600 positions and bringing total employment to 14.4 million by December 2026.
While last year saw employment nearly flat, with only 10,700 jobs added in 2025, certain industries continue to lead hiring.
Here’s a look at the sectors driving Texas’ employment growth in 2026:
Energy: A Sector Adapting and Expanding
Energy continues to shape Texas’ economy, even as the sector navigates volatility. In the 2026 Texas Economic Outlook, the Dallas Fed anticipates momentum from AI investment and data center construction and continued demand for skilled energy workers to help the industry recover.
Texas produces 42% of the nation’s total oil output and leads the country in wind energy generation. That mix of traditional and renewable energy keeps the sector relevant, especially for technical and engineering roles.
- What this means for job seekers:
Energy careers remain strong for workers open to innovation, from traditional oil and gas roles to renewable energy and technology-driven infrastructure projects.
Financial Services: Hiring Momentum Continues
In 2025, financial activities emerged as one of the few sectors experiencing job growth, and we anticipate this trend to persist. With easier financial conditions and deregulation expected to support growth this year, Texas’ financial services sector, including banking, investment, and corporate finance, remains a reliable source of career opportunities.
- What this means for job seekers:
Candidates with expertise in analytics, compliance, or financial technology can position themselves to benefit from steady growth in financial roles.
Construction: Rebounding After a Downturn
Construction employment saw gains in 2025 despite a downturn in residential housing earlier in the year. Population growth in Texas, combined with ongoing infrastructure projects, continues to make construction one of the fastest-growing sectors. The Dallas Fed notes that continued activity in data center construction and AI-related facilities will add momentum to the industry in 2026.
- What this means for job seekers:
Opportunities range from skilled trades to project management roles, with construction offering both stable employment and potential for advancement.
Other Key Industries
While energy, finance, and construction are leading the way, other sectors are also shaping Texas’ labor market.
- Healthcare and education continued to add jobs in 2025, supporting population growth and workforce needs.
- Trade and transportation remain steady employers, particularly as Texas retains its role as a logistics hub.
- Technology is stabilizing, with overall high-tech employment flat in 2025, but ongoing AI investments and data center expansion suggest selective hiring in the sector.
Texas’ 2026 Labor Market Outlook
The Dallas Fed forecasts 1.1% job growth in 2026, though labor supply constraints, low oil prices, housing market pressures, and potential USMCA renegotiations remain headwinds. On the positive side, fiscal policy, deregulation, and global events like the FIFA World Cup could provide boosts to the economy.
For job seekers, focusing on energy, financial services, and construction provides the clearest path to growth in Texas this year. Luis Torres, senior business economist at the Dallas Fed, points out that understanding these trends is key: “Employers were more cautious about hiring as a result of high policy uncertainty…job gains were observed in construction, education and health services, financial activities, and trade and transportation services.”
Those entering the workforce or considering a career move can gain an edge by aligning skills with the industries set to thrive in 2026.
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