economy

Texas Statewide Overview2020 Regional Report

This analysis predates the COVID-19 crisis and the economic impacts that followed. It is offered as an overview of the Texas economy and a resource for comparative purposes.

The Texas Comptroller’s office divides the 268,000 square miles of Texas into 12 economic regions, each with at least one Census-defined metropolitan statistical area (MSA), areas with relatively high population densities and close economic integration. Regions with multiple MSAs may have more than one highlighted to emphasize their economic significance as regional hubs (Exhibit 1).

Texas Comptroller Economic Regions and Metropolitan Statistical Areas

Region	Name	Region MSA(s)
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

Note: Bolded MSAs highlighted for particularly significant population and economic output.

---

This report examines statewide economic trends including population, household income, jobs and wages and education, as well as economic conditions unique to the state and its regions.

Population

Texas had an estimated total population of 29 million in 2019, more than half of it concentrated in the Dallas-Fort Worth-Arlington MSA (26 percent) and Houston-The Woodlands-Sugarland MSA (24.1 percent). From 2010 to 2019, the state’s population grew more than twice as fast as the nation’s, at 15.3 percent vs. 6.3 percent. While most Texas MSAs saw population increases, Austin-Round Rock and Midland outpaced all others (Exhibit 2).

Texas Population by MSA, 2010 vs. 2019Ranked by Percent Change

Texas MSA	Comptroller Economic Region	2010 Census	2019 (estimate)	Change 2010 to 2019	Percent Change
Austin-Round Rock MSA	Capital	1,716,289	2,227,083	510,794	29.80%
Midland MSA	West Texas	141,671	182,603	40,932	28.90%
Odessa MSA	West Texas	137,130	166,223	29,093	21.20%
Houston-The Woodlands-Sugar Land MSA	Gulf Coast	5,920,416	7,066,141	1,145,725	19.40%
San Antonio-New Braunfels MSA	Alamo	2,142,508	2,550,960	408,452	19.10%
Dallas-Fort Worth-Arlington MSA	Metroplex	6,366,542	7,573,136	1,206,594	19.00%
College Station-Bryan MSA	Central Texas	228,660	264,728	36,068	15.80%
Killeen-Temple MSA	Central Texas	405,300	460,303	55,003	13.60%
Sherman-Denison MSA	Metroplex	120,877	136,212	15,335	12.70%
McAllen-Edinburg-Mission MSA	South Texas	774,769	868,707	93,938	12.10%
Tyler MSA	Upper East	209,714	232,751	23,037	11.00%
Lubbock MSA	High Plains	290,805	322,257	31,452	10.80%
Laredo MSA	South Texas	250,304	276,652	26,348	10.50%
Waco MSA	Central Texas	252,772	273,920	21,148	8.40%
San Angelo MSA	West Texas	112,966	122,027	9,061	8.00%
Victoria MSA	Alamo	94,003	99,742	5,739	6.10%
Corpus Christi MSA	South Texas	405,027	429,024	23,997	5.90%
Amarillo MSA	High Plains	251,933	265,053	13,120	5.20%
El Paso MSA	Upper Rio Grande	804,123	844,124	40,001	5.00%
Brownsville-Harlingen MSA	South Texas	406,220	423,163	16,943	4.20%
Abilene MSA	Northwest	165,252	172,060	6,808	4.10%
Longview MSA	Upper East	280,000	286,657	6,657	2.40%
Beaumont-Port Arthur MSA	Southeast	388,745	392,563	3,818	1.00%
Wichita Falls MSA	Northwest	151,306	151,254	-52	0.00%
Texarkana MSA	Upper East	149,198	148,761	-437	-0.30%
TEXAS		25,145,561	28,995,881	3,850,320	15.30%

Source: U.S. Census Bureau

---

Population Composition

According to the U.S. Census Bureau’s American Community Survey, the Texas population had a median age of 34.2 years in 2018. Of the state’s 254 counties, 163 had a median age significantly above the state median; only 31 were significantly younger. Among the state’s most populous counties, most (Tarrant, Dallas, Harris, Travis and Bexar counties) had median ages on par with the state except for El Paso county, which was significantly younger. Texas’ MSAs were on par with the state median except for Laredo (28.3 years) and College Station-Bryan (26.8 years).

Texas is an ethnically diverse state; 43.4 percent of its population is white (not Hispanic), 38.6 percent is Hispanic, 11.6 percent is black (not Hispanic) and 6.3 percent is of “other” ethnicity (Exhibit 3).

---

Household Income

In 2018, Texans had a median household income of $59,570. Household income in Texas is generally distributed among five income levels. Of more than 9 million Texas households, 21 percent had annual incomes of less than $25,000 in 2018, while 17 percent had incomes above $125,000 (Exhibit 4). In every region in the state, nearly 18 percent of households had average incomes between $50,000 and $75,000.

Leading Texas Industries

In 2019 Texas contributed about $1.9 trillion or 8.8 percent of the U.S. gross domestic product (GDP) of $12.4 trillion.

The strength of Texas’ economy is due in part to the diversity of its major industries. Exhibit 5 lists the industries with the greatest statewide employment concentrations compared to the national average, as measured by location quotient (LQ). LQ represents an industry’s proportionate concentration in the region; an LQ greater than 1.0 means that industry employment is more concentrated in the region than nationally. A high LQ can identify industries that have a competitive advantage in the region, such as the ability to produce products more efficiently and of a higher quality.

In terms of LQ, Texas’ strongest industries are oil and gas extraction, support for mining activities and pipeline transportation industries, reflecting the state’s status as national leader in the energy sector.

Top 10 Texas Industries by Location Quotient

Industry	LQ	Employed	Average Annual Wages
Oil and Gas Extraction	6.22	77,812	$201,076
Support Activities for Mining	5.36	160,398	$102,211
Pipeline Transportation	4.38	19,396	$163,858
Petroleum and Coal Products Manufacturing	2.37	23,030	$141,632
Heavy and Civil Engineering Construction	1.97	210,241	$71,331
Space Research and Technology	1.97	2,932	$138,621
Leather and Allied Product Manufacturing	1.90	4,505	$37,570
Air Transportation	1.48	64,268	$98,439
Museums, Historical Sites and Similar Institutions	1.48	31,616	$30,245
Support Activities for Transportation	1.43	100,608	$63,212
Total - All Industries	0.99	12,575,053	$59,470

Note: Data are as of Q4 2019 except for wages, which represent covered employment in 2018.

Source: JobsEQ

---

U.S. Military Installation Impact

A unique aspect of the Texas economy is the contribution made by U.S. military installations located in the state. Texas has 14 of these installations within its borders. In 2019, they directly employed more than 226,000 and supported nearly 634,000 jobs in all. Based upon data provided through the Texas Military Preparedness Commission, the Comptroller’s office estimates that military installations contributed about $75.3 billion to the Texas GDP in 2019.

Learn more about the impact of U.S. military installations on the state’s economy.

Jobs and Wages

In 2019, more than 12.5 million persons were employed in Texas. The state’s job count rose by about 22.3 percent from 2009 to 2019, outperforming the national job growth rate during the period (Exhibit 6).

2019 Employment, Texas vs. U.S.

Area	Number of Jobs	Change in Jobs 2009 to 2019	Percent Change 2009 to 2019
Texas	12,531,100	2,284,407	22.3%
United States	147,886,638	17,768,373	13.7%

Note: Figures include private- and public-sector employees with the exception of active-duty military personnel, railroad employees, employees of religious institutions and the self-employed.

Sources: JobsEQ and U.S. Bureau of Labor Statistics

---

Occupations by Industry Concentration (LQ)

The following exhibits highlight high-growth and concentrated occupations in Texas. Exhibit 7 details the most common occupations by LQ. Extraction workers, such as earth drillers and mining machine operators, generally work in the oil and gas industry.

Five Top Texas Occupations, by Location Quotient, 2019

Occupation	Employment	Average Annual Wages, 2018	LQ
Extraction Workers	79,055	$45,200	4.04
Plant and System Operators	39,617	$59,000	1.47
Supervisors of Construction and Extraction Workers	84,104	$68,900	1.46
Air Transportation Workers	33,501	$112,600	1.38
Helpers, Construction Trades	28,191	$32,200	1.34

Note: Data are as of Q4 2019 except wage data, which represent covered employment in 2018.

Source: JobsEQ

---

Exhibit 8 shows occupations with the largest numeric growth in Texas during the last five years. Most of the fastest-growing occupations are in service industries; the largest occupation category in the top 10 (and seventh fastest-growing) includes relatively high-paying computer occupations.

Texas Employment Growth 2014 to 2019

Occupation	2019 Employment	Average Annual Wages, 2018	LQ	Five-year Employment Change, 2014 to 2019	Percent Growth	Annual Employment Growth, 2018 to 2019	Percent Growth
Personal Care and Service Workers (Other)	315,623	$22,300	0.94	84,188	6.4%	9,822	3.1%
Animal Care and Service Workers	18,324	$24,200	0.92	4,852	6.3%	454	2.5%
Sales Representatives, Services	205,744	$65,700	1.14	53,117	6.2%	3,309	1.6%
Supervisors of Personal Care and Service Workers	15,072	$42,800	0.65	3,822	6.0%	287	1.9%
Mathematical Science Occupations	14,417	$85,700	0.97	3,589	5.9%	482	3.3%
Healthcare Practitioners and Technical Occupations (Other)	19,081	$68,500	1.29	3,835	4.6%	293	1.5%
Computer Occupations	372,699	$91,500	0.99	72,922	4.5%	8,030	2.2%
Top Executives	214,795	$131,500	0.96	39,157	4.1%	3,266	1.5%
Personal Appearance Workers	39,277	$26,300	0.77	7,178	4.1%	750	1.9%
Air Transportation Workers	33,332	$112,600	1.38	6,075	4.1%	492	1.5%

Note: Data are as of Q4 2019 except wage data, which are for covered employment in 2018.

Source: JobsEQ

---

Education

A strong educational foundation provides a cornerstone for growth and competitiveness in the global economy, offering opportunities for workplace advancement and business expansion.

Post-secondary education delivers a good return on investments of time and tuition. Texas workers with some college or associate degrees and with stable jobs (defined as those held with the same firm throughout a calendar quarter) earn an average of $8,393 more annually than those with a high school degree, while those with at least a bachelor’s degree earn an average of $43,681 more (Exhibit 9).

Average Annual Earnings by Educational Attainment, Texas, 2019

Educational Attainment	Employed	Percent of Texas	Average Annual Earnings
Less than High School	2,065,483	17.1%	$42,808
High School or Equivalent, No College	2,765,759	22.9%	$52,035
Some College or Associate Degree	3,245,675	26.9%	$60,428
Bachelor’s Degree or Advanced Degree	2,454,975	20.3%	$95,716
Educational Attainment Data Unavailable	1,544,282	12.8%	$22,087
Total	12,076,174		$58,787

Sources: U.S. Census Bureau and JobsEQ

---

During the 2017-18 school year, 90 percent of Texas’ high school seniors graduated a steady rise from the 84.3 percent graduation rate during the 2009-10 school year (Exhibit 10).

Texas Public High School Graduation Rates, 2009-10 to 2017-18 School Year

Region	2010	2011	2012	2013	2014	2015	2016	2017	2018
Texas	84.3%	85.9%	87.7%	88.0%	88.3%	89.0%	89.1%	89.7%	90.0%

Source: Texas Education Agency

---

Many of Texas’ high school graduates enroll in postsecondary education, which offers greater job prospects and the possibility of higher wages. Each of the Comptroller’s economic regions offer a variety of higher education options (Exhibit 11).

Texas Institutions of Higher Education by Comptroller Region

Region	Number of Universities	Number of Junior and Community Colleges	Number of Health Science Schools
Alamo	9	7	1
Capital	6	1	1
Central Texas	4	7	1
Gulf Coast	10	22	6
High Plains	4	4	1
Metroplex	18	20	2
Northwest	5	6	0
South Texas	6	7	1
Southeast	3	4	0
Upper East	7	9	1
Upper Rio Grande	2	1	1
West Texas	2	3	0
Texas Total	76	91	15

Note: See our individual regional reports for a more on higher education institutions within each region.

Source: Texas Higher Education Coordinating Board

---

Statewide Economic Indicators

The health of the Texas economy can be measured in part through an analysis of sales tax collections. Sales taxes are inherently volatile in the short term but over time can provide a useful gauge of the state’s economic condition.

Sales Tax Revenue

Sales receipts subject to Texas state sales tax trended upward in the past decade, with a significant climb following the 2009 recession (Exhibit 12). While sales receipts leveled off somewhat from 2014 to 2016, 2019 receipts exceeded the long-term linear trend line.

Revenue Subject to Texas Sales Tax, 2007 to 2019

Year	Texas Revenue
2007	330.3 billion dollars
2008	349.7 billion dollars
2009	315.4 billion dollars
2010	326.1 billion dollars
2011	361.9 billion dollars
2012	398.6 billion dollars
2013	421.8 billion dollars
2014	456.2 billion dollars
2015	457.9 billion dollars
2016	453.6 billion dollars
2017	483.1 billion dollars
2018	526.2 billion dollars
2019	556.7 billion dollars
Total	4.88 trillion dollars

Source: Texas Comptroller of Public Accounts

---

In 1997, the U.S., Canada and Mexico jointly released the North American Industry Classification System (NAICS), which classifies all business enterprises for the purpose of collecting, analyzing and publishing economic statistics. A review of two-digit NAICS codes allows for a broad analysis of industry sectors.

In 2019, Texas’ retail trade and food services sector contributed most to taxable sales, contributing 36.8 percent of all reported taxable sales. Two other industries of note, the accommodation and the information sectors, together contributed about 20 percent of reported taxable sales.

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 9th largest economy in terms of GDP. Exhibit 13 shows how Texas ranks among other states and the nation on several demographic and economic measures.

Texas Compared to the U.S.

Measure	Texas	State Rank	U.S.
Square Miles	268,597	2	3,531,905
Population, 2019	28,995,881	2	328,239,523
Population with at Least a High School Diploma, 2018	83.2%	49	87.7%
Population with Bachelor’s Degree or Higher, 2018	29.3%	28	31.5%
Population Under 18 Years, 2018	25.8%	2	22.4%
Population 65 Years and Above, 2018	12.6%	48	16.0%
Population Percent Change, 2010 to 2019	15.3%	2	6.3%
Per Capita Income, 2018	$50,355	26	$54,446
Unemployment Rate, 2019	3.5%	27	3.9%

Sources: U.S. Census Bureau, U.S. Bureau of Labor Statistics and U.S. Bureau of Economic Analysis

---

Statewide Summary

With several of the nation’s most populous cities, Texas’ urban and suburban areas offer significant economic opportunity. The state also has some of the nation’s least-populous counties, including some of the nation’s most productive agricultural land. This urban-rural interdependence creates sustainable cycles of economic activity. Each of Texas’ 12 economic regions feature dominant industries unique to each, contributing to an economic diversity that helped the state navigate previous economic downturns.

Since the 2010 Census, Texas’ population has risen by more than 3.8 million. Most Texas MSAs grew in the last decade, with the Austin-Round Rock and Midland MSAs leading the state in population growth. The state’s most populous counties, and all MSAs, have median ages on par with or younger than the state’s median of 34.2 years. Texas’ rural and less-populated counties have older populations; 163 of Texas’ 254 counties have median ages significantly above that of the state as a whole.

The Texas economy has seen consistent growth in the last decade. The military and its supporting industries have had a positive impact on all of the state’s economic regions. Businesses supporting energy extraction and transportation are highly concentrated in Texas, making its 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.