TWC Sets Stable Employer Tax Rate to Promote Continued Business Recovery

Texas Workforce Commission • June 15, 2021

Unemployment Insurance Tax rate for 2021 set at pre-pandemic level,
protecting Trust Fund solvency while reducing tax burden on Texas businesses

The Texas Workforce Commission (TWC) used legislative authority to set unemployment insurance (UI) tax rates for 2021 at a stable level, consistent with 2020 rates, to avoid burdening Texas businesses with a significant increase of taxes resulting from pandemic-related closures outside of their control. 


“Texas employers continue to overcome the challenges of the past year and contribute to a strengthening economy,” said TWC Chairman Bryan Daniel. “Today’s action on UI taxes enables businesses to better focus resources on innovating and expanding jobs available to Texas workers.”


Employer-paid UI taxes replenish the Texas Unemployment Compensation Trust Fund, which provides temporary income for workers who lose their jobs through no fault of their own. Each employer’s UI tax rate is unique, tied to unemployment benefits paid to former employees. Absent today’s Commission action, most Texas employers would have seen significant increases in their tax obligation for 2021. 


“Texas workers are eager to get back to work and help move our economy forward,” said TWC Commissioner Representing Labor Julian Alvarez. “This decision to keep taxes low will encourage hiring, and expand opportunities for working Texans.”


The Commission set the state’s UI replenishment tax rate to 0.18 percent, and the deficit tax rate to 0.0 percent. The Obligation Assessment was set to 0.03 percent to cover any federal interest due on Title XII loans due on September 30, 2021. The combination of the replenishment tax and obligation assessment equals the 2020 replenishment tax rate of 0.21 percent.


“This decision gives stability and predictability to our UI tax structure,” said TWC Commissioner Representing Employers Aaron Demerson. “Texas employers and Business leaders look forward to that stability especially after a year of rampant uncertainty. This gives them the capacity they need to hire, expand and get Texas’ economy back on track.”

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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