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.”


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).
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.
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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