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.

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Resilient Texas Job Market Shows Industry-Specific Growth as Unemployment Remains Stable

April 22, 2026

The total number of nonfarm jobs in Texas registered at 14,354,600 after decreasing by 8,500 positions in February. Over the year, the state added 73,800 jobs for an annual nonfarm growth rate of 0.5 percent, outpacing the national growth rate by 0.4 percentage points. Texas’ civilian labor force registered at 15,941,800 after decreasing by 13,400 over the month. Over the year, Texas’ civilian labor force has added 121,200 people. The seasonally adjusted unemployment rate in Texas remained stable at 4.3 percent. “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,” said TWC Chairman Joe Esparza. “The Texas Workforce Commission is investing strategically in programs that foster long-term economic prosperity across all regions of our state.” The Professional and Business Services industry had the largest private sector over-the-month increase in February after adding 6,300 jobs. In addition, Manufacturing added 2,500 jobs over the month while Information added 200. Construction posted the highest annual growth rate of any major industry for the 19th month in a row at 2.7 percent in February. “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,” said TWC Commissioner Representing Labor Alberto Treviño III. “The Texas workforce system is addressing the needs of today while anticipating those of tomorrow through initiatives like Texas Intern Network, which connects young Texans with employers.” The Midland metropolitan statistical area (MSA) had the lowest unemployment rate with a not seasonally adjusted rate of 3.3 percent in February. It was followed by the San Angelo MSA at 3.5 percent and the Abilene MSA at 3.6 percent. “The foundations of the Texas economy are strong, and our employers and workers are resilient and adaptable,” said TWC Commissioner Representing the Public Brent Connett. “It’s encouraging to see robust growth surging across key industries like Construction and Professional and Business Services, signaling that there is ample cause for optimism.” 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 March is scheduled to be released on Friday, May 1, 2026, at 9:00 a.m. (CT).

TWC Announces Funding Opportunity for Adult Diploma Workforce Program

April 22, 2026

The Texas Workforce Commission (TWC) is now accepting applications for its Workforce Diploma Pilot Program. This funding opportunity is intended to support programs that help adult learners in Texas obtain a high-school diploma, earn industry-recognized credentials, and develop employability skills. The Workforce Diploma Pilot Program is designed to create new career pathways for adult learners. The program connects adults who have not completed high school with education providers that offer a combination of academic instruction, career training, and supportive coaching. Eligible applicants must be authorized to grant a high school diploma in Texas or partner with an accredited entity that is authorized. Applicants are also required to have at least two years of experience in dropout reengagement services for adult students. This includes experience in academic assessments, proactive coaching, employability skills training, and preparation for industry-recognized credentials. Interested organizations must submit their completed responses by May 5, 2026. The complete request for qualifications (RFQ), including all requirements and submission documents, can be found online at: https://www.txsmartbuy.gov/esbd/3202600137 . Organizations must use this portal to submit their response. All questions regarding this RFQ should be emailed to vendorproposals@twc.texas.gov .