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2018 Texas Regional Report Compiled from an analysis of the 12 Comptroller Economic Regions
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The Texas Comptroller’s office has divided the 268,000 square miles of Texas into 12 economic regions, each with at least one Census-defined metropolitan statistical area (MSA) considered to be an economic center or “focus” for that region (Exhibit 1).
This report examines regional economic trends including population, personal income, jobs and wages, and education, as well as economic conditions unique to the state and its regions.
| Region | Name | Region MSAs* |
|---|---|---|
| 1 | High Plains | Amarillo MSA Lubbock MSA |
| 2 | Northwest | Abilene MSA Wichita Falls MSA |
| 3 | Metroplex | Dallas-Fort Worth-Arlington MSA - Fort Worth-Arlington Metro Division - Dallas-Plano-Irving Metro Division Sherman-Denison MSA |
| 4 | Upper East | Longview MSA Texarkana, TX-AR Metro Area Tyler MSA |
| 5 | Southeast | Beaumont-Port Arthur MSA |
| 6 | Gulf Coast | Houston-The Woodlands-Sugar Land MSA |
| 7 | Central Texas | College Station-Bryan MSA Killeen-Temple MSA Waco MSA |
| 8 | Capital | Austin-Round Rock MSA |
| 9 | Alamo | San Antonio-New Braunfels MSA Victoria MSA |
| 10 | South Texas | Brownsville-Harlingen MSA Corpus Christi MSA Laredo MSA McAllen-Edinburg-Mission MSA |
| 11 | West Texas | Midland MSA Odessa MSA San Angelo MSA |
| 12 | Upper Rio Grande | El Paso MSA |
* Bolded MSAs provide an economic “focus” for their regions.
Source: U.S. Census Bureau
Population
Texas had an estimated total population of 28.3 million in 2017, 12.6 percent or 3 million more than in the 2010 census. More than half of the state’s population is concentrated in the Dallas-Fort Worth-Arlington MSA (26.1 percent) and the Houston-The Woodlands-Sugarland MSA (24.4 percent).
From 2007 to 2017, the state’s population grew more than twice as fast as that of the nation as a whole, at 12.6 percent vs. 5.5 percent. While most Texas MSAs saw population increases, Austin-Round Rock outpaced all others, growing by more than 23 percent (Exhibit 2).
| Texas MSAs* | Comptroller Economic Region | 2010 Census | 2017 (estimate) | Change (2010 to 2017) |
|---|---|---|---|---|
| Austin-Round Rock MSA | Capital | 1,716,289 | 2,115,827 | 23.3% |
| Midland MSA | West Texas | 141,671 | 170,675 | 20.5% |
| Houston-The Woodlands-Sugar Land MSA | Gulf Coast | 5,920,416 | 6,892,427 | 16.4% |
| San Antonio-New Braunfels MSA | Alamo | 2,142,508 | 2,473,974 | 15.5% |
| Dallas-Fort Worth-Arlington MSA | Metroplex | 6,426,214 | 7,399,662 | 15.2% |
| Odessa MSA | West Texas | 137,130 | 157,087 | 14.6% |
| College Station-Bryan MSA | Central Texas | 228,660 | 258,044 | 12.9% |
| McAllen-Edinburg-Mission MSA | South Texas | 774,769 | 860,661 | 11.1% |
| Laredo MSA | South Texas | 250,304 | 274,794 | 9.8% |
| Killeen-Temple MSA | Central Texas | 405,300 | 443,773 | 9.5% |
| Lubbock MSA | High Plains | 290,805 | 316,983 | 9.0% |
| Tyler MSA | Upper East | 209,714 | 227,727 | 8.6% |
| Sherman-Denison MSA | Metroplex | 120,877 | 131,140 | 8.5% |
| San Angelo MSA | West Texas | 111,823 | 119,535 | 6.9% |
| Waco MSA | Central Texas | 252,772 | 268,696 | 6.3% |
| Corpus Christi MSA | South Texas | 428,185 | 454,008 | 6.0% |
| Victoria MSA | Alamo | 94,003 | 99,646 | 6.0% |
| Amarillo MSA | High Plains | 251,933 | 264,925 | 5.2% |
| El Paso MSA | Upper Rio Grande | 804,123 | 844,818 | 5.1% |
| Brownsville-Harlingen MSA | South Texas | 406,220 | 423,725 | 4.3% |
| Abilene MSA | Northwest | 165,252 | 170,219 | 3.0% |
| Beaumont-Port Arthur MSA | Southeast | 403,190 | 412,437 | 2.3% |
| Longview MSA | Upper East | 214,369 | 217,481 | 1.5% |
| Texarkana MSA | Upper East | 149,198 | 150,355 | 0.8% |
| Wichita Falls MSA | Northwest | 151,306 | 151,230 | -0.1% |
* Bolded MSAs provide an economic “focus” for their regions.
Source: U.S. Census Bureau
Population Composition
According to a recent Census analysis, Texas has a median age of 34.2 years. Of the state’s 254 counties, 163 have a median age significantly older than the state median and only 31 are significantly younger. Of the state’s most populous counties, most (Tarrant, Dallas, Harris, Travis and Bexar) had median ages on par with the state’s except for El Paso County, which is significantly younger. MSAs in Texas are on par with the state median except for Laredo (28.3 years) and College Station-Bryan (26.8 years).
Texas household income is more or less evenly distributed among five income levels. Of the more than 9 million households in the state, 22 percent have family incomes of less than $25,000 and 16 percent have incomes of more than $125,000 (Exhibit 3). Within every region of the state, nearly 18 percent of households have an average household income between $50,000 and $75,000.
Texas is an ethnically diverse state; 38.6 percent of its total population is Hispanic, 11.6 percent is black (not Hispanic) and 6.3 percent is of “other” minority ethnicity (Exhibit 4).
| Income Level | State Total |
|---|---|
| less than $25,000 | 22.2% |
| $25,000 to $50,000 | 23.6% |
| $50,000 to $75,000 | 17.8% |
| $75,000 to $125,000 | 20.2% |
| more than $125,000 | 16.1% |
Source: U.S. Census Bureau
| Race and Ethnicity | State Total |
|---|---|
| Hispanic | 38.6% |
| Black (not Hispanic) | 11.6% |
| White (not hispanic) | 43.4% |
| Other | 6.3% |
Source: U.S. Census Bureau
Jobs and Wages
In 2017, Texas provided more than 12 million jobs. The state’s job count rose by about 17.4 percent from 2007 to 2017, almost three times the rise seen in the U.S. (Exhibit 5).
| Area | Number of Jobs, 2017 | Change in Jobs from 2007 | Percent Change |
|---|---|---|---|
| Texas | 12,011,078 | 1,779,177 | 17.4% |
| United States | 143,860,846 | 8,495,037 | 6.3% |
Note: Figures include private and public sector employees with the exception of active duty military personnel, railroad employees, religious institution employees and the self-employed.
Sources: JobsEQ and Bureau of Labor Statistics
Nearly 30 percent of Texas’ jobs are in the Metroplex Region, followed by the Gulf Coast Region with about 25 percent of the total. The Capital Region, however, saw the highest job growth between 2007 and 2017, with employment increasing by 30 percent.
The average Texas wage was $55,801 in 2017, about even with the nation’s; from 2007 to 2017, however, the state’s individual wage growth slightly outpaced that of the nation (Exhibit 6). Texas’ inflation-adjusted wages rose by more than 5.6 percent during this period.
| Area | Average Wage, 2017 | Change in Wages from 2007 | Nominal Rate of Change, 2007 to 2017 | Real Rate of Change,* 2007 to 2017 |
|---|---|---|---|---|
| Texas | $55,801 | $11,106 | 24.9% | 5.6% |
| United States | $55,375 | $10,917 | 24.6% | 5.4% |
* The constant or “real” rate adjusts average wages for the effects of inflation in the value of a particular base year. According to the Bureau of Labor Statistics, prices in 2017 are 18.22 percent higher than prices in 2007.
Sources: JobsEQ and Bureau of Labor Statistics
Industry Concentration
Exhibit 7 lists the Texas industry subsectors most highly concentrated according to location quotient (LQ) — a measure of how concentrated an industry is in the region relative to the nation — and by share of total state jobs in each subsector. Industries are described according to the federal government’s North American Industry Classification System (NAICS), which is used by federal statistical agencies to classify business establishments.
Texas’ most highly concentrated industries primarily concern the extraction and transportation of natural resources as well as construction services. The air transportation subsector saw some of the highest annual wage increases from 2007 to 2017.
| Industry Description (NAICS Code)1 | Location Quotient2 | Number of Jobs | Change 2007 to 2017 | Average Wage | Nominal Rate of Change3 | Real Rate of Change,3 2007 to 2017 |
|---|---|---|---|---|---|---|
| Oil and Gas Extraction (211) | 6.23 | 75,697 | -0.2% | $188,968 | 20.7% | 2.1% |
| Support Activities for Mining (213) | 5.36 | 133,439 | 11.8% | $96,713 | 16.3% | -1.6% |
| Pipeline Transportation (486) | 4.48 | 19,066 | 36.8% | $158,441 | 17.3% | -0.8% |
| Petroleum and Coal Products Manufacturing (324) | 2.43 | 23,142 | -5.2% | $133,019 | 12.3% | -5.0% |
| Space Research and Technology (927) | 2.02 | 2,959 | -9.7% | $127,161 | 20.3% | 1.7% |
| Heavy and Civil Engineering Construction (237) | 1.81 | 176,419 | 10.2% | $67,188 | 36.6% | 15.5% |
| Leather and Allied Product Manufacturing (316) | 1.80 | 4,272 | -2.0% | $37,225 | 29.4% | 9.4% |
| Air Transportation (481) | 1.50 | 62,580 | -4.1% | $94,622 | 45.5% | 23.0% |
| Museums, Historical Sites and Similar Institutions (712) | 1.46 | 30,566 | 26.0% | $28,669 | 16.3% | -1.6% |
| Support Activities for Transportation (488) | 1.44 | 92,593 | 18.6% | $59,260 | 25.2% | 5.9% |
| Texas Total | - | 12,011,078 | 17.4% | $55,801 | 24.8% | 5.6% |
Note: The figures above include private and public sector employees with the exception of active duty military personnel, railroad employees, religious institution employees and the self-employed.
- NAICS codes are the standard used by federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing and publishing statistical data related to the U.S. business economy.
- The higher the location quotient, the more concentrated the industry subsector is in the region compared to nation.
- The constant or “real” rate adjusts average wages for the effects of inflation in the value of a particular base year. According to the Bureau of Labor Statistics, prices in 2017 were 18.22 percent higher than prices in 2007.
Sources: JobsEQ and Bureau of Labor Statistics
Education
A strong educational foundation is the cornerstone for growth and competitiveness in the global economy. As the Texas economy diversifies, becoming more knowledge based, a well-educated workforce offers possibilities for workplace advancement and prospects for business expansion.
In 2016, 89.1 percent of the Texas' class of public high school students graduated, slightly higher than the state’s rate of 89.1 percent (Exhibit 8).The Texas high school graduation rate has risen by almost 5 percent since 2010.
Many high school graduates enroll in postsecondary programs, offering greater job prospects and the possibility to of earning higher wages. Texas residents enjoy a variety of options for higher education (Exhibit 9); each of the Comptroller’s economic regions offers opportunities.
| Year | Texas |
|---|---|
| 2010 | 84.3% |
| 2011 | 85.9% |
| 2012 | 87.7% |
| 2013 | 88.0% |
| 2014 | 88.3% |
| 2015 | 89.0% |
| 2016 | 89.1% |
Source: Texas Education Agency
| Region | Universities | Junior and Community Colleges | Health Science Schools |
|---|---|---|---|
| High Plains | 4 | 4 | 1 |
| Northwest | 5 | 6 | 0 |
| Metroplex | 18 | 21 | 2 |
| Upper East | 7 | 9 | 1 |
| Southwest | 3 | 4 | 0 |
| Gulf Coast | 10 | 22 | 4 |
| Central Texas | 4 | 6 | 1 |
| Capital | 6 | 1 | 1 |
| Alamo | 9 | 7 | 1 |
| South Texas | 6 | 7 | 1 |
| West Texas | 2 | 3 | 0 |
| Upper Rio Grande | 2 | 1 | 1 |
| Texas Total | 76 | 91 | 13 |
For a list of institutions of higher education within a specific economic regions, see that region’s individual report.
Source: Texas Higher Education Coordinating Board
Regional Economics
The Comptroller's office has analyzed data pertaining to each of the 12 regional economies, examining their dynamics and competitiveness.
Sales Tax Revenue
Sales receipts subject to Texas state sales tax trended upward in the past decade (Exhibit 10), with a significant climb following the 2009 recession. While the trend leveled off somewhat from 2014 to 2016, receipts from 2017 match the long-term trend line.
A review of two-digit NAICS codes allows for a broad analysis of industry sectors within the state. The retail trade and food services and accommodation sectors clearly contribute most to taxable sales, with the two combining for more than 49 percent of the state’s reported sales tax contributions. Three other industries of note are wholesale trade, manufacturing and information, combining for 25 percent of the state’s reported sales tax contributions.
| Year | Subject to Texas Sales Tax |
|---|---|
| 2007 | $330,278,179,769 |
| 2008 | $349,714,254,911 |
| 2009 | $315,364,296,469 |
| 2010 | $326,089,404,510 |
| 2011 | $361,942,118,931 |
| 2012 | $398,649,894,316 |
| 2013 | $421,844,060,026 |
| 2014 | $456,217,805,889 |
| 2015 | $457,879,905,244 |
| 2016 | $453,636,195,871 |
| 2017 | $483,135,308,754 |
Source: Texas Comptroller of Public Accounts
U.S. Military Installation Impact
Texas has 13 U.S. military installations within its borders. In 2017, these bases directly employed more than 224,000 and supported nearly 625,000 jobs in all. Based upon 2017 data provided through the Texas Military Preparedness Commission (TMPC), the Comptroller estimates that U.S. military installations in Texas contribute about $62.3 billion annually to the state’s gross domestic product (GDP).
Texas vs. the U.S.
Based on data from the World Bank and the U.S. Bureau of Economic Analysis, if Texas were a nation, it would rank as the world’s 10th largest economy in terms of GDP. Exhibit 11 shows how the region rates with other states and the nation on a number of demographic and economic measures. The Alamo Region would be the 42nd largest state in terms of land mass (square miles) and have the 36th largest population. The region would also have the 30th highest per capita income and would have the 16th lowest unemployment rate in 2017.
| Measure | Texas | State Rank | U.S. |
|---|---|---|---|
| Population | 28,304,596 | 2 | 325,719,178 |
| Age 25+ with at least a High School Diploma | 82.4% | 49 | 87.0% |
| Age 25+ with Bachelor's Degree or Higher | 28.1% | 29 | 30.3% |
| Population Under 18 Years | 26.0% | 2 | 22.6% |
| Population 65 Years and Over | 12.3% | 48 | 15.7% |
| Age Dependency Ratio* | 62.1% | 20 | 61.9% |
| Per Capita Income | $46,204 | 25 | $49,204 |
| Unemployment Rate | 4.3% | 26 | 4.4% |
The age dependency ratio is the share of dependent-age persons compared to the working-age population minus the sum of those under 18 years and 65 and older divided by the population age 18 to 64. In other words, for every 100 working-age people in Texas there are about 62 dependent-age people.
Sources: U.S. Census Bureau, U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis
Conclusion
Texas is both urban and rural, with a vibrant and diverse economy. Each of the 12 economic regions may emphasize a few specific industries, but the fact that the economy is as diverse as it is insulated Texas from the full effect of the 2009 recession and helped mitigate the results of the oil price plunge in 2014.
Since the last decennial Census in 2010, Texas has added more than 3 million people. Almost all Texas MSAs saw their population increase, with the Austin-Round Rock MSA leading growth at 23.3 percent. Interestingly, while the state’s most populous counties, as well as all MSAs, have median ages on par with or younger than the state’s median of 34.2 years, 163 of Texas’ 254 counties have median ages significantly above the state’s.
The Texas economy as a whole has been led by consistent growth from the Capital and Metroplex regions. While the U.S. military and supporting industries have had a positive economic impact on all regions, construction services as well as air transport have a large footprint as well. Businesses supporting the extraction and transportation of natural resources are highly concentrated in the state and help make the Texas economy unique among states.
Questions?
If you have any questions or concerns regarding the material on this page, please contact the Comptroller’s Data Analysis and Transparency Division.