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.

Texas’ Civilian Labor Force Sets New Record as Annual Growth Rate Continues to Outpace the Nation

By Workforce Solutions East Texas • July 18, 2025
Texas’ civilian labor force achieved another new record high of 15,850,100 after adding 10,800 people over the month and marking 60 of 62 months of growth. Over the year, Texas’ civilian labor force has added 237,800 people. Texas added 198,300 jobs over the year for an annual nonfarm growth rate of 1.4 percent, outpacing the national growth rate by 0.3 percentage points. The state had 14,329,200 total nonfarm jobs after decreasing by 1,900 positions over the month of June. The seasonally adjusted unemployment rate in Texas registered at 4.0 percent after decreasing by 0.1 percentage points over the month. “The increase in the civilian labor force and the drop in the unemployment rate highlight continued strength in the Texas economy,” said TWC Chairman Bryan Daniel. “TWC provides a number of tools for both job seekers and employers as we continue to grow the Texas labor force.” The Private Education and Health Services industry had the largest over-the-month increase in June after adding 6,900 jobs. Leisure and Hospitality added 3,000 jobs over the month while Information added 1,000. In addition, the Construction industry grew by 2.4 percent over the year in Texas and outperformed the industry’s growth rate nationally by 0.9 percentage points. “As Texas thrives, TWC is dedicated to empowering working Texans to share in that success," said TWC Commissioner Representing Labor Alberto Treviño III. "Through our strong partnerships and resources like WorkInTexas.com, targeted job fairs, and essential skills training, we're helping Texans capitalize on opportunities and achieve their career goals.” The Midland Metropolitan Statistical Area (MSA) had the lowest unemployment rate among Texas MSAs with a not seasonally adjusted rate of 3.0 percent in June, followed by the Amarillo and San Angelo MSAs at 3.1 percent. “TWC supports a business-friendly environment, which attracts employers to Texas, creates new career paths, and contributes to a more prosperous workforce,” said TWC Commissioner Representing Employers Joe Esparza. "Key sectors like Private Education and Health Services continue to add thousands of jobs and highlight the opportunities for Texas employers.” 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 15, 2025, at 9:00 a.m. (CT).

TWC Launches New Grant to Address Workforce Readiness Gaps

By Workforce Solution East Texas • June 24, 2025
 The Texas Workforce Commission (TWC) is now accepting applications for Skills for Success, a special initiative with Texas State Technical College (TSTC) designed to equip Texas workers with essential workforce readiness skills. “TWC is proud to partner with TSTC on Skills for Success, a program that directly aligns with our mission to connect Texans with rewarding careers,” said TWC Chairman Bryan Daniel. “We are committed to ensuring our state’s employers have access to a skilled and adaptable workforce.” Through the Skills for Success grant, TWC covers all costs of specific TSTC training courses for eligible employers to create customized training packages. Employers of any size can select courses to meet their business and staffing needs. Courses train on skills such as communication, organization, teamwork, problem-solving, critical thinking, digital literacy, conflict resolution, time management, and more. “Skills for Success isn’t just a training program; it’s a launchpad for Texan careers,” said Commissioner Representing Labor Alberto Treviño III. “By equipping individuals with essential soft skills, we’re empowering them to earn better wages, secure fulfilling jobs, and build stronger futures for their families and communities.” Funded through the state’s Skills Development Fund, Skills for Success is available to private employers with full-time employees working anywhere in Texas. By developing and emphasizing the importance of these foundational skills, this program aims to improve employee performance, increase retention rates, and foster a more adaptable workforce to meet the evolving needs of Texas employers. “Small, medium, and large employers across the state have expressed the need for motivated employees who demonstrate technical and workforce readiness skills, like flexibility, leadership, and attention to detail,” said TWC Commissioner Representing Employers Joe Esparza. “The Skills for Success program will bridge a skills gap and create a stronger workforce for Texas employers.” Texas businesses interested in participating in the Skills for Success grant are encouraged to visit www.twc.texas.gov/sfs for the application, course catalog, eligibility requirements, and contact information.

East Texas Job Fairs Expand Access to Opportunities Across the Region

By Workforce Solutions East Texas • June 23, 2025
Workforce Solutions East Texas continues to strengthen its mission of connecting talent with opportunity through two recent job fairs held in June 2025, each serving a unique purpose and community need. Windows of Opportunity Job Fair (June 12, 2025) Hosted across multiple Workforce Solutions East Texas offices, the quarterly Windows of Opportunity Job Fair drew 330 job seekers and 51 employers from industries such as healthcare, manufacturing, retail, and education. The event gave attendees a chance to meet directly with hiring managers, explore job openings, and participate in on-the-spot interviews. Employers praised the turnout and the quality of candidates, while job seekers appreciated the chance to connect in person without the formal barriers of traditional hiring processes. The next Windows of Opportunity Job Fair is planned for the last quarter of 2025. For updates, visit www.easttexasworkforce.org/hiring-events . Panola County Job Fair: A Local Partnership with Big Impact (June 17, 2025) Separately, Workforce Solutions East Texas partnered with the Panola County Chamber of Commerce to host the Panola County Job Fair, focusing on connecting local job seekers and employers in a rural setting. The event welcomed 44 job seekers and 7 local employers, highlighting the value of direct outreach in communities often underserved by broader economic development efforts. “Rural areas are the backbone of East Texas, but they are sometimes overshadowed by the needs and resources of larger cities,” said Deanna Alexander, Community Engagement Area Manager. “That’s why partnerships like the one we have with the Panola County Chamber of Commerce are so essential.”  The success of the Panola County event shows how strong rural partnerships can drive long-term economic development and workforce engagement.
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