TWC Lowers Taxes for Texas Employers in 2023

Texas Workforce Commission • January 11, 2023

The Texas Workforce Commission (TWC) announced the average unemployment insurance (UI) tax rate for all employers will be 1.16% for calendar year (CY) 2023. Last year, the average tax rate was 1.35%.

The minimum tax rate is paid by more than 370,000 employers, which represents 61.5% of experience-rated employers. The minimum UI tax rate paid by Texas employers in CY 2023 will be 0.23%, which is 0.08 percentage points lower than 0.31% in CY 2022. These employer-paid UI taxes replenish the Texas Unemployment Compensation Trust Fund, which provides temporary income for Texas workers who lose their jobs through no fault of their own.

An experience rating is determined by the amount of an employer’s taxable wages and the amount of UI benefits that have been paid to former employees and charged to the employer’s account for the last three years. An employer paying the standard minimum tax will pay $20.70 per employee in CY 2023 on the first $9,000 in wages per employee compared with $27.90 per employee in CY 2022. The average tax rate for experience-rated employers is 0.89%. The maximum UI tax rate, paid by 4.2% of Texas employers, will be 6.23%, down 0.08 percentage points from CY 2022 at 6.31%.

TWC is dedicated to finding ways to lower the financial impact of UI taxes on Texas employers. TWC and the state’s 28 local workforce boards are also committed to helping UI claimants return to work as soon as possible. Because the Texas Unemployment Compensation Trust Fund has risen above its statutory minimum required balance, TWC will not charge employers any deficit tax in 2023. More information about the components of the tax rate are on TWC’s website.


Wages often can be the largest portion of expenses for a business. As Texas business owners begin staffing plans for the next year, TWC invites businesses to access data from its annual Occupational Wage Survey, which can provide valuable insights on competitive wages for all types of positions for any area in Texas. Information gathered in the survey is confidential and is reported from Texas employers who participate in the survey. For more information or to participate and assist in making Texas more competitive in the labor marketplace, please contact us by emailing oesinfo@twc.texas.gov or by calling (800) 252-3616.

August 4th Regionwide Job Fair Employers List

July 28, 2026
Tuesday, August 4 | Athens, Longview, Marshall, Palestine, and Tyler

Texas Job Market Grows by More Than 177,000 Positions Over the Year

July 20, 2026
Texas added 43,400 nonfarm jobs in June to reach a total of 14,469,600 positions. Over the year, the state added 177,900 jobs for an annual growth rate of 1.2 percent, outpacing the national growth rate by 0.9 percentage points. Texas’ civilian labor force registered at 15,904,900 after adding 3,400 people over the month. Over the year, Texas’ civilian labor force has added 29,700 people. The seasonally adjusted unemployment rate in Texas registered at 4.4 percent. “Texas’ continued job growth is a testament to the strength of our employers and robust workforce development system,” said TWC Chairman Joe Esparza. “The addition of more than 177,000 jobs over the year reinforces Texas’ reputation among employers as the best place to start and grow a business.” The Professional and Business Services industry had the largest private sector over-the-month increase in June after adding 25,500 jobs. Leisure and Hospitality added 10,300 jobs over the month while Trade, Transportation, and Utilities added 6,400. “The growth of the Texas labor market highlights the incredible talent and dedication of our state’s workforce,” said TWC Commissioner Representing Labor Alberto Treviño III. “The Texas Workforce Commission is committed to ensuring every Texan has the support they need to thrive, whether through training opportunities to gain new skills or specialized programs that help our foster youth transition into successful careers.” The Midland metropolitan statistical area (MSA) had the lowest unemployment rate with a not seasonally adjusted rate of 3.6 percent in June. It was followed by the San Angelo MSA at 3.9 percent and the Abilene MSA at 4.0 percent. “With an annual growth rate of 1.2 percent, Texas continues to outpace the national average and demonstrate economic resilience,” said TWC Commissioner Representing the Public Brent Connett. “Both job seekers and employers can seek customized career services and recruitment assistance by visiting our TWC website or their local Workforce Solutions office.” Employment estimates released by TWC are produced in cooperation with the U.S. Department of Labor’s Bureau of Labor Statistics. * All estimates are subject to revision. To access this and more employment data, visit TexasLMI.com . The Texas Labor Market Information Data for July is scheduled to be released on Friday, August 21, 2026, at 9:00 a.m. (CT).

Building Connections, Strengthening Child Care

July 20, 2026
Workforce Solutions East Texas Child Care Services is proud to partner with the Panola County Chamber of Commerce to support child care leaders across the region. Through this partnership, the Chamber provides a welcoming meeting space for Directors Connect training designed to help early learning program owners and directors connect, learn, and grow together. The partnership was made possible through the support of Keri Perot-Vance, Executive Director of the Panola County Chamber of Commerce, whose commitment to community collaboration helped create a space where child care leaders can come together to share ideas, discuss challenges, and strengthen their leadership skills. The partnership began in 2025 in response to daycare owners expressing a need for accessible training opportunities. Recognizing this need, Panola County Chamber of Commerce graciously offered to host the Directors Connect training in its beautiful historic building. This collaboration provides child care professionals with the opportunity to earn professional development hours required to remain in compliance with Child Care Regulation and Texas Rising Star. Tonia Crawford and Aerial Jones, Business Industry Specialists for Child Care Services and facilitators of Directors Connect, say the program has evolved into so much more than a training opportunity. It has become a space for meaningful conversations, professional connections, and shared solutions. Through these gatherings, directors are strengthening their businesses, growing as leaders, and ultimately enhancing the quality of care provided to children and families throughout East Texas. Workforce Solutions East Texas Child Care Services is grateful for the Panola County Chamber of Commerce's ongoing support and looks forward to continuing this impactful partnership for years to come. Together, we are investing in stronger leaders, stronger child care programs, and stronger communities.
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