Texas' Economic Surge: Balancing Job Growth With Housing and Infrastructure Strains

Texas is riding a wave of economic growth, with new data showing the state added 192,100 jobs from March 2024 to March 2025, outpacing every other state. The numbers tell a striking story: a labor force of 15.8 million, the largest in Texas history, and 15.1 million Texans working, including self-employed individuals. Total nonfarm jobs hit 14.3 million after a gain of 26,500 in March alone. These figures, released by state and federal labor agencies, paint a picture of a state capitalizing on its economic strengths.

Governor Greg Abbott has pointed to the state’s business-friendly environment and skilled workforce as key drivers. Businesses, from startups to global corporations, continue to flock to Texas, drawn by low taxes and a growing population. Yet, the rapid expansion brings challenges, like rising housing costs and strained infrastructure, which are starting to reshape the state’s urban and rural landscapes. For Texans curious about what this means for their communities, the job boom is both an opportunity and a balancing act.

At the heart of Texas’ economic success is its focus on workforce development. Programs like the Jobs and Education for Texans (JET) grant and the Skills Development Fund are equipping thousands of residents with skills for high-demand fields. In 2023, JET alone awarded $15 million to train over 8,000 students in areas like healthcare, welding, and advanced manufacturing. A recent $1.3 million grant to Collin County Community College District will support training in healthcare and accounting, among other fields.

Career and technical education (CTE) is also a cornerstone of this strategy. Texas has poured over $7 billion into CTE programs for the 2024-2025 budget cycle, with legislative moves like House Bill 120 tripling funding for tech-focused high schools. These programs boast a 96% graduation rate, and in 2023, 115,000 students earned industry certifications or associate degrees. For students and families, this means a direct path to well-paying jobs without the burden of heavy college debt.

Still, the push for workforce training isn’t without hurdles. The state faces a projected shortage of 6 million skilled workers by 2032. Rural areas, in particular, struggle to access the same resources as urban centers like Dallas or Houston. Policymakers are working to bridge this gap by expanding rural CTE funding, but the scale of the challenge underscores the need for sustained investment.

Texas has long been a magnet for businesses, and the past decade shows why. From 2010 to 2019, over 25,000 companies relocated to the state, bringing 281,000 jobs. The majority are small businesses, but high-profile moves by firms in tech, manufacturing, and finance grab headlines. No state income tax, affordable real estate, and lighter regulations make Texas a compelling choice, especially compared to high-cost states like California or New York.

While programs like the Texas Enterprise Fund offer incentives, research suggests economic fundamentals matter more. A growing population fuels demand, and a lower cost of living keeps workers and businesses happy. However, the influx isn’t all rosy. Housing prices in cities like Austin and Dallas have soared, and infrastructure like roads and public transit is feeling the strain. For everyday Texans, this can mean longer commutes and tougher budgets, even as job opportunities multiply.

Texas’ economic engine relies on an educated workforce, and public education funding is a critical piece of the puzzle. House Bill 2, passed in April 2025, boosts per-student funding to $6,555, a $395 increase, and allocates $3 billion for teacher pay raises. Special education also gets a $1.5 billion boost, aiming to better support students with disabilities. These steps mark a historic high in education spending, driven partly by the state’s Permanent School Fund, which generates hundreds of millions annually.

Yet, the funding picture isn’t all bright. When adjusted for inflation, per-student spending has lagged since 2021, and federal pandemic relief funds have dried up. School districts, grappling with rising costs, have cut staff and closed campuses. Advocates for public education argue that an additional $1,300 per student would be needed to restore pre-2019 purchasing power. The debate over school vouchers adds another layer, with estimates suggesting public schools could lose billions if even a small percentage of students shift to private options.

Texas’ job market and economic growth show no signs of slowing, but the path forward requires careful navigation. Investments in workforce training and education are laying a strong foundation, ensuring Texans can compete in a fast-changing economy. At the same time, the state must address the downsides of rapid growth, from housing affordability to infrastructure demands, to keep the boom sustainable.

For residents, the economic surge offers real opportunities: more jobs, better training, and pathways to prosperity. But it also raises questions about how growth will shape communities in the years ahead. As Texas continues to lead the nation, balancing opportunity with stability will be the key to keeping the state’s economic engine roaring.