Midland, Texas Hits Lowest Unemployment in the State

While big Texas cities make headlines, a small West Texas town is quietly leading the state in getting people back to work.

Midland, Texas dropped its unemployment rate to 3.3% in August, earning the title of lowest jobless rate in the entire state. That's well below Texas' overall rate of 4.6% and better than powerhouse cities like Austin, Dallas, and Houston.

The numbers tell an even better story beneath the surface. Over the past year, Midland added 4,100 new jobs, a growth rate of 3.3% that's triple the state's 1.1% rate.

"We are not only seeing a low unemployment rate but we are also continuing to add people to the workforce and putting more people to work," said Cherie Gallardo, executive director at Workforce Solutions Permian Basin. The city's labor force grew by 2.4% while employed workers increased by 2.6%, meaning more people are finding work as more people enter the job market.

Mining, logging, and construction led the charge with 2,200 new positions over the year. The sector paid out $1.4 billion in wages during early 2026 alone. Healthcare, education, and government jobs followed with 800 new positions each.

Neighboring Odessa also saw improvements, dropping to 4% unemployment from 4.3% the previous month. San Angelo came in second statewide at 3.6%, while Abilene and Amarillo tied for third at 3.7%.

The Ripple Effect

Midland's job boom is creating momentum beyond just employment numbers. Wage growth in the region is projected to outpace the entire state's growth rate, according to the Perryman Group. That means families earning more, businesses thriving, and communities reinvesting in local infrastructure and services.

The city now employs 129,800 people across all sectors, with more workers joining the labor force each month. From August 2025 to August 2026, the number of employed residents jumped from 102,048 to 104,728.

While Texas as a whole added 159,400 jobs over the year, Midland's outsized contribution shows how regional economies can drive statewide progress. The city proves that strong sectors like energy and construction, when paired with growing healthcare and education jobs, create stable employment ecosystems.

For a metropolitan area of just over 108,000 workers, Midland is punching well above its weight, showing that economic opportunity isn't just for major metros anymore.