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.

January 20, 2026
When Latavia Harris unexpectedly lost her job, she found herself facing a moment of uncertainty. The disruption was more than financial—her plans for the future were suddenly placed on pause. Yet even in that difficult moment, Latavia chose resilience. She made the same decision thousands of East Texans make each year when navigating job loss: she applied for unemployment. That simple step became the bridge to something much bigger. Through the unemployment process, Latavia was connected to the RESEA (Reemployment Services and Eligibility Assessment) program at Workforce Solutions East Texas. RESEA provides structured guidance and support to job seekers receiving unemployment, equipping them with the tools to navigate the job search process and overcome barriers that may prevent them from returning to the workforce. In the program, staff helped Latavia refresh her resume, strengthen her interview skills, and explore new career pathways. As she gained encouragement and direction, she began to rebuild her job prospects. That journey led her somewhere she never expected—to a role within the very organization that had helped her rebuild. Today, Latavia serves as a Career Navigator for the WIOA Youth program at Workforce Solutions East Texas, joining the ranks of a team she once turned to for support. In her new role, Latavia feels a special connection with the young adults she serves. Having recently been in a similar position herself, she understands their fears, their doubts, and the courage it takes to begin again. This lived experience fuels her commitment to help them succeed, so they too can experience how Workforce programs can change a person’s future for the better. “All of the programs in Workforce do our community well,” Latavia shares. “It helps us be able to do the work and get back to work.” Latavia speaks openly about the difference her future coworkers made during her time as a participant. Their backing, encouragement, and support played a major role in helping her pursue a new and exciting career path—and find stability after a difficult season. Her transition into the workforce felt different this time, she explains: “One of the things I could tell was different in coming to Workforce from like ten years ago to when I had to come back this summer, was it was very open, very welcoming. You knew that they wanted to help you get back to work.” Being met with genuine care reshaped how she viewed workforce development—and her own goals. “It was like, wow— I want to be part of a team that is happy about what they are here doing, is happy to impact lives,” she reflects. “They wanted to genuinely help me and were happy to help me. So, I was like when I am back to work, this is the type of team I want to work with.” Latavia’s journey serves as a powerful reminder of the long-term impact of workforce development. Its value extends far beyond reemployment—it fosters confidence, builds futures, strengthens families, and contributes to the stability of communities across East Texas. What began as a setback became a calling. Latavia now helps others take their next steps forward, carrying with her a lived understanding that the right support at the right time can transform a moment of crisis into a story of resilience, renewal, and purpose.
January 13, 2026
Texas added 7,300 nonfarm jobs in November to reach a total of 14,321,000 positions. Over the year, the state added 146,300 jobs for an annual nonfarm growth rate of 1.0 percent, outpacing the national growth rate by 0.4 percentage points. Texas’ civilian labor force registered at 15,938,500 after adding 59,500 people since September 2025 and reaching a new record high level for the series. Over the year, Texas’ civilian labor force has added 206,800 people. The seasonally adjusted unemployment rate in Texas registered at 4.2 percent. “As Texas employers add thousands of jobs, TWC programs can help them grow, develop, and retain a skilled workforce,” said TWC Chairman Joe Esparza. “Initiatives like Skills for Small Business and the Skills Development Fund are training Texans for in-demand jobs that will cement Texas’ reputation as the best state in the nation for doing business.” The Private Education and Health Services industry had the largest private sector over-the-month increase in November after adding 5,700 jobs. Professional and Business Services added 3,900 jobs over the month while Manufacturing added 2,300. In addition, the Construction industry posted an annual growth rate of 2.8 percent in November, which was the highest of any major industry. “Texas' increasing job numbers are encouraging, and it's vital that these are good jobs that provide family-sustaining wages and benefits for Texas workers. We must continue to prioritize investments in skills training and development to ensure that all Texans can access these opportunities and share in the state's prosperity,” said TWC Commissioner Representing Labor Alberto Treviño III. “As we celebrate this growth, let's also remain committed to fair labor practices and worker protections to ensure a thriving workforce for years to come.” The Amarillo metropolitan statistical area (MSA) had the lowest unemployment rate with a not seasonally adjusted rate of 3.1 percent in November, followed by the Midland MSA at 3.2 percent. The College Station-Bryan and San Angelo MSAs both registered at 3.3 percent. “Texas’ job growth in November not only highlights the benefits of our diverse and growing economy but also underscores the importance of making sure Texans can thrive in their communities,” said TWC Commissioner Representing the Public Brent Connett. “TWC and our statewide network of local partners are able to continue strengthening the Texas economy and the foundations of our communities.” 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.
December 16, 2025
When Princess Tyeskie first walked into Workforce Solutions East Texas, she carried a deep determination to build a better life for herself and her children. As a single mother with experience in fast food and retail, she was ready for something more—something stable, meaningful, and aligned with the future she dreamed of.  Through the Workforce Innovation and Opportunity Act (WIOA) Program, Princess was placed at Dr. Willis Longview Footcare Clinic. It was a new environment, but she stepped into it with courage and purpose. Her professionalism, reliability, and warm spirit quickly stood out, and she soon became a trusted part of the team. By the end of her work experience, Princess had gained more than new skills—she had earned a direct hire with the clinic as a Medical Administrative Assistant. It was a life-changing moment that reflected her determination and the power of the opportunities WIOA provides. When asked about her experience, Princess shared: “Through the Workforce Solutions East Texas Youth Program, I was given the opportunity to gain hands-on experience in the medical field—the area I aspire to specialize in.” During her Work Experience at Dr. Willis Longview Footcare Clinic, Princess quickly demonstrated the professionalism, compassion, and determination that WSET staff always knew she had. She simply needed the opportunity to show it. The WIOA Work Experience program opened that door. “My dedication and ability to adapt to the clinic’s environment led to me being directly hired after completing my work experience. This achievement reflects my commitment, my work ethic, and my passion for providing quality medical care,” Princess states. Today, Princess stands in a career she once only dreamed about—one that brings stability, pride, and a renewed sense of purpose. Her success is more than a job; it’s a foundation for her children to look up to and build upon. More than that, it’s an invitation—an invitation for others to dream bigger, take the first step, and trust that transformation begins with opportunity. Princess’s journey serves as a reminder that even when life feels heavy, adjusting your crown and moving forward can lead to powerful new beginnings.
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