This analysis predates the COVID-19 crisis and the economic impacts that followed. It is offered as an overview of the West Texas regional economy and a resource for comparative purposes.
The 30-county West Texas region covers about 39,800 square miles in western Texas, stretching from the cities of Mason and Brady on the east to the Rio Grande just south of Dryden and north to the city of Seminole.
The West Texas region contains three metropolitan statistical areas (MSAs): The Midland MSA, comprising the counties of Martin and Midland; the Odessa MSA, comprising Ector County; and the San Angelo MSA, comprising Irion and Tom Green counties. Counties in the region not associated with an MSA include Andrews, Borden, Coke, Concho, Crane, Crockett, Dawson, Gaines, Glasscock, Howard, Kimble, Loving, Mason, McCulloch, Menard, Pecos, Reagan, Reeves, Schleicher, Sterling, Sutton, Terrell, Upton, Ward and Winkler counties. The West Texas region’s two largest economic centers are the cities of Midland (in Midland County) and Odessa (in Ector County).
This report examines regional economic trends including population, household income, jobs and wages and education, as well as economic conditions unique to the West Texas region.
The West Texas region’s estimated total population in 2019 was approximately 660,000, or about 2.3 percent of the state’s total population. This represented an increase of almost 16 percent (more than 90,000 people) since the 2010 Census. An estimated 25 percent of the region’s population lives in Ector County; 27 percent lives in Midland County.
From 2010 to 2019, the region’s population growth was on par with that of the state (Exhibit 1). Midland County, the region’s most populous, grew by 29 percent, almost twice as fast as the state.
County | 2010 Census | Estimate (as of July 2019) |
Change 2010 to 2019 | Percent Change |
---|---|---|---|---|
Andrews | 14,786 | 18,705 | 3,919 | 26.5% |
Borden | 641 | 654 | 13 | 2.0% |
Coke | 3,320 | 3,387 | 67 | 2.0% |
Concho | 4,087 | 2,726 | -1,361 | -33.3% |
Crane | 4,375 | 4,797 | 422 | 9.6% |
Crockett | 3,719 | 3,464 | -255 | -6.9% |
Dawson | 13,833 | 12,728 | -1,105 | -8.0% |
Ector | 137,130 | 166,223 | 29,093 | 21.2% |
Gaines | 17,526 | 21,492 | 3,966 | 22.6% |
Glasscock | 1,226 | 1,409 | 183 | 14.9% |
Howard | 35,012 | 36,664 | 1,652 | 4.7% |
Irion | 1,599 | 1,536 | -63 | -3.9% |
Kimble | 4,607 | 4,337 | -270 | -5.9% |
Loving | 82 | 169 | 87 | 106.1% |
Martin | 4,799 | 5,771 | 972 | 20.3% |
Mason | 4,012 | 4,274 | 262 | 6.5% |
McCulloch | 8,283 | 7,984 | -299 | -3.6% |
Menard | 2,242 | 2,138 | -104 | -4.6% |
Midland | 136,872 | 176,832 | 39,960 | 29.2% |
Pecos | 15,507 | 15,823 | 316 | 2.0% |
Reagan | 3,367 | 3,849 | 482 | 14.3% |
Reeves | 13,783 | 15,976 | 2,193 | 15.9% |
Schleicher | 3,461 | 2,793 | -668 | -19.3% |
Sterling | 1,143 | 1,291 | 148 | 12.9% |
Sutton | 4,128 | 3,776 | -352 | -8.5% |
Terrell | 984 | 776 | -208 | -21.1% |
Tom Green | 110,224 | 119,200 | 8,976 | 8.1% |
Upton | 3,355 | 3,657 | 302 | 9.0% |
Ward | 10,658 | 11,998 | 1,340 | 12.6% |
Winkler | 7,110 | 8,010 | 900 | 12.7% |
Midland MSA | 141,671 | 182,603 | 40,932 | 28.9% |
Odessa MSA | 137,130 | 166,223 | 29,093 | 21.2% |
West Texas Region Total | 571,871 | 662,439 | 90,568 | 15.8% |
Texas Total | 25,145,561 | 28,995,881 | 3,850,320 | 15.3% |
Source: U.S. Census Bureau
According to the U.S. Census Bureau’s 2018 American Community Survey, the median age of the West Texas region’s counties is slightly lower than that of the state. Five of the region’s 30 counties had median ages significantly lower than the state’s 2018 median age of 34.2 years. Two of the region’s counties — Kimble (54.5 years) and Loving (58.2 years) — had among the “oldest” populations in the state, while Gaines County, at 28.4 years, was one of the “youngest.” But the region’s most populous counties had median ages roughly at or below the state’s; the Midland and Odessa MSAs also had median ages significantly lower than the state median.
The West Texas region’s Hispanic population made up 47.6 percent of the region total in 2018 — 9 percentage points higher than the state’s 38.6 percent Hispanic population share (Exhibit 2). The region’s 4.2 percent black (not Hispanic) population was more than 7 percentage points lower than the state’s black (non-Hispanic) population share of 11.6 percent.
The West Texas region had a median household income of $62,171 in 2018. Texas’ household income is generally distributed among five income levels (Exhibit 3). Of more than 9 million Texas households, 21 percent had incomes less than $25,000 in 2018, while 17 percent had incomes greater than $125,000. In every region in the state, nearly 18 percent of households had average incomes between $50,000 and $75,000. The West Texas region’s 2018 household income was on par with the state in all income categories.
Ethnicity | West Texas Region | State Total |
---|---|---|
Hispanic | 47.6% | 38.6% |
Black (not Hispanic) | 4.2% | 11.6% |
White (not Hispanic) | 45.6% | 43.4% |
Other | 2.6% | 6.3% |
Source: U.S. Census Bureau
Income Level | West Texas Region | State Total |
---|---|---|
less than $25,000 | 19.4% | 21.1% |
$25,000 to $50,000 | 23.5% | 23.0% |
$50,000 to $75,000 | 18.1% | 17.9% |
$75,000 to $125,000 | 22.2% | 20.6% |
more than $125,000 | 16.8% | 17.4% |
Source: U.S. Census Bureau
In 2019, the West Texas region accounted for about 2.5 percent of the state’s total employment. Exhibit 4 lists the industries with the greatest regional 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.
Based on location quotients, the West Texas region is a leader in support activities for mining, oil and gas extraction and pipeline transportation, making its employment heavily reliant on the energy sector.
Occupation | LQ | Number Employed | Average Annual Wages |
---|---|---|---|
Support Activities for Mining | 60.71 | 45,640 | $94,157 |
Oil and Gas Extraction | 41.99 | 13,207 | $153,349 |
Pipeline Transportation | 12.54 | 1,395 | $130,558 |
Heavy and Civil Engineering Construction | 4.08 | 10,962 | $76,283 |
Mining (Except Oil and Gas) | 3.65 | 1,513 | $79,978 |
Rental and Leasing Services | 3.56 | 4,455 | $85,990 |
Truck Transportation | 2.99 | 9,886 | $74,228 |
Gasoline Stations | 2.20 | 4,475 | $35,410 |
Fishing, Hunting and Trapping | 2.13 | 40 | $30,503 |
Lessors of Nonfinancial Intangible Assets (Except Copyrighted Works) | 2.11 | 106 | $85,717 |
Total - All Industries | 0.99 | 317,595 | $65,301 |
Data are as of Q4 2019 except wage data, which are for covered employment in 2018.
Source: JobsEQ
Texas has 14 U.S. military installations within its borders. In 2019, these bases directly employed more than 226,000 and supported nearly 634,000 jobs in all. In addition, the U.S. military installations in Texas contributed an estimated $75.3 billion annually to the state’s gross domestic product (GDP). Goodfellow Air Force Base, the only military installation within the West Texas region, had a significant positive impact on the Texas economy, supporting an estimated 21,000 jobs in 2019 and contributing about $2.7 billion to the state’s GDP (Exhibit 5).
Region | Total Jobs Supported | Contribution to State GDP |
---|---|---|
West Texas | 21,410 | $2.7 billion |
State of Texas | 633,892 | $75.3 billion |
Sources: Texas Comptroller of Public Accounts, Texas Military Preparedness Commission and REMI
Learn more about the impact of U.S. military installations on the state’s economy.
The West Texas region’s employment rose by almost 36 percent from 2009 to 2019, far exceeding employment growth in the state. Employment in the Midland MSA rose by nearly 62 percent over the same period, while the Odessa MSA grew by more than 37 percent (Exhibit 6). During this decade, the Midland MSA had the state’s fastest-growing job market. More than 34 percent of the region’s jobs were in the Midland MSA; nearly 26 percent were in the Odessa MSA.
`Area | Number of Jobs (2019) | Actual Change (2009 to 2019) | Percent Change (2009 to 2019) |
---|---|---|---|
Midland MSA | 110,271 | 42,177 | 61.9% |
Odessa MSA | 81,933 | 22,196 | 37.2% |
West Texas Region | 317,112 | 83,515 | 35.8% |
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, religious institution employees and the self-employed.
Sources: JobsEQ and U.S. Bureau of Labor Statistics
The West Texas region’s most significant occupations are shown in Exhibits 7 and 8, first by location quotient and second by numeric growth during the last five years.
Occupation | Number Employed | Average Annual Wages | LQ | Unemployment Rate | Five-Year Employment Change |
---|---|---|---|---|---|
Extraction Workers | 19,185 | $45,700 | 38.86 | 3.3% | 3,581 |
Supervisors of Construction and Extraction Workers | 5,173 | $79,600 | 3.58 | 2.0% | 1,388 |
Plant and System Operators | 1,889 | $62,600 | 2.79 | 0.5% | -36 |
Other Healthcare Practitioners and Technical Occupations | 1,045 | $68,700 | 2.64 | 1.6% | 379 |
Physical Scientists | 1,211 | $144,800 | 2.15 | 1.4% | 72 |
Note: Data are as of Q4 2019 except wage data, which are for covered employment in 2018.
Source: JobsEQ
Occupation | Number Employed | Average Annual Wages | LQ | Unemployment Rate | Five-Year Employment Change |
---|---|---|---|---|---|
Construction Trades Workers | 19,761 | $42,600 | 1.60 | 3.9% | 4,389 |
Motor Vehicle Operators | 16,432 | $43,500 | 1.65 | 2.0% | 3,760 |
Extraction Workers | 19,185 | $45,700 | 38.86 | 3.3% | 3,581 |
Food and Beverage Serving Workers | 16,717 | $21,300 | 1.00 | 4.2% | 2,333 |
Material Moving Workers | 11,566 | $37,100 | 1.05 | 3.8% | 1,610 |
Note: Data are as of Q4 2019 except wage data, which are for covered employment in 2018.
Source: JobsEQ
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. In 2018, West Texas region workers with some college or associate degrees and with stable jobs — defined as those employed with the same firm throughout a calendar quarter — earned an average of $3,331 more annually than those with a high school degree, while those with at least a bachelor’s degree earned an average of $18,321 more (Exhibit 9).
Educational Attainment | Number Employed, Region | Percent of Region | Average Annual Earnings, Region | Number Employed, Texas | Percent of Texas | Average Annual Earnings, Texas |
---|---|---|---|---|---|---|
Less than High School | 58,851 | 20.7% | $46,649 | 2,065,483 | 17.1% | $42,808 |
High School or Equivalent, No College | 72,493 | 25.5% | $54,196 | 2,765,759 | 22.9% | $52,035 |
Some College or Associate Degree | 76,276 | 26.9% | $57,527 | 3,245,675 | 26.9% | $60,428 |
Bachelor’s Degree or Advanced Degree | 39,251 | 13.8% | $72,517 | 2,454,975 | 20.3% | $95,716 |
Educational Attainment Unavailable | 36,963 | 13.0% | $30,065 | 1,544,282 | 12.8% | $22,087 |
Total | 283,835 | $54,379 | 12,076,174 | $58,787 |
Sources: U.S. Census Bureau and JobsEQ
The West Texas region’s high school graduation rate has risen steadily since 2010. During the 2017-18 school year, 88.4 percent of the region’s class of public senior high school students graduated, lower than the state’s rate of 90 percent (Exhibit 10).
Region | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 |
---|---|---|---|---|---|---|---|---|---|
West Texas | 80.8% | 81.7% | 83.9% | 83.0% | 84.7% | 85.8% | 87.4% | 88.6% | 88.4% |
Texas | 84.3% | 85.9% | 87.7% | 88.0% | 88.3% | 89.0% | 89.1% | 89.7% | 90.0% |
Source: Texas Education Agency
Many high school graduates enroll in postsecondary programs, which offer greater job prospects and the possibility of higher wages. Residents of the West Texas region have several options for higher educational achievement (Exhibit 11).
The West Texas region’s three community college districts provided technical and academic coursework for more than 16,000 students in the 2017-18 school year (Exhibit 12).
Community College District | Enrollment | Awards | Average Tuition and Fees | Academic Share of Students Enrolled | Technical Share of Students Enrolled | Enrolled or Employed, Academic* | Enrolled or Employed, Technical* |
---|---|---|---|---|---|---|---|
Howard County Junior College District | 4,565 | 628 | $2,560 | 59.6% | 40.4% | 84.0% | 89.5% |
Midland College | 5,259 | 863 | $2,670 | 70.7% | 29.3% | 89.9% | 91.6% |
Odessa College | 6,571 | 1,245 | $2,730 | 68.3% | 31.7% | 90.0% | 92.0% |
*The percentage of academic or technical graduates employed in the fourth quarter of the calendar year after graduation and/or enrolled in a Texas two- or four-year institution in the following fall after graduation, as specified.
Source: Texas Higher Education Coordinating Board
Community colleges in the West Texas region awarded more than 1,200 certificates and associate degrees in general studies and liberal arts in the 2017-18 school year; the next most common awards were for health professions, business administration and marketing (Exhibit 13).
Certificates and Degrees | Number Awarded |
---|---|
Liberal Arts and Sciences, General Studies and Humanities | 1,215 |
Health Professions and Related Clinical Sciences | 509 |
Business, Management, Marketing and Related Support Services | 275 |
Personal and Culinary Services | 171 |
Security and Protective Services | 162 |
Engineering Technologies/Technicians | 158 |
Mechanic and Repair Technologies/Technicians | 148 |
Computer and Information Sciences and Support Services | 118 |
Education | 83 |
Precision Production | 69 |
Source: JobsEQ
The health of the West Texas region’s economy can be measured by its sales tax revenue and by comparisons with other areas on education, population, per capita income and unemployment rate. Together, these data are good indicators of the region’s economic dynamics and competitiveness.
Sales taxes are inherently volatile in the short term but when reviewed over time can provide a useful indication of the state’s economic condition.
Sales receipts subject to state sales tax directly attributable to the West Texas region trended upward in the past decade. This region’s taxable sales revenue has been the state’s most volatile since the 2009 recession, with sales rising by almost 150 percent from 2009 to 2014. This high was followed by a significant two-year decline (Exhibit 14). In 2018, the region saw a rise in taxable sales exceeding 2014’s and this rise continued into 2019. For 2019, receipts subject to state sales tax directly attributed to businesses in the West Texas region approached $21 billion, contributing 3.7 percent of the state’s total taxable sales. The Midland MSA directly accounted for $8.9 billion of this total.
.
Year | Revenue West Texas Region |
---|---|
2007 | 8.0 billion dollars |
2008 | 9.4 billion dollars |
2009 | 7.1 billion dollars |
2010 | 8.4 billion dollars |
2011 | 11.0 billion dollars |
2012 | 13.5 billion dollars |
2013 | 14.4 billion dollars |
2014 | 17.7 billion dollars |
2015 | 13.5 billion dollars |
2016 | 11.1 billion dollars |
2017 | 15.2 billion dollars |
2018 | 20.3 billion dollars |
2019 | 20.7 billion dollars |
Note: Numbers shown are for reported revenue subject to sales tax and directly attributed to the region.
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.
The West Texas region’s retail trade and mining sectors contributed most to taxable sales in 2019, accounting for a combined 49.5 percent of the region’s taxable sales. Two other industries of note were the wholesale trade and the manufacturing sectors, together generating about 22 percent of the region’s taxable sales.
Exhibit 15 illustrates how the West Texas region compares among other states and the nation on a number of demographic and economic measures. If it were a state, the West Texas region would be the 38th largest in terms of land area (just behind Kentucky) and have the 49th largest population. In 2018, the region had the fifth-highest per capita income.
Measure | West Texas Region | Rank if Region were a State | Texas | State Rank | U.S. |
---|---|---|---|---|---|
Square Miles | 39,828 | 38 | 268,597 | 2 | 3,531,905 |
Population, 2019 | 662,439 | 49 | 28,995,881 | 2 | 328,239,523 |
Population with at Least a High School Diploma, 2018 | 79.3% | 51 | 83.2% | 49 | 87.7% |
Population with Bachelor’s Degree or Higher, 2018 | 19.5% | 51 | 29.3% | 28 | 31.5% |
Population Under 18 Years, 2018 | 27.3% | 2 | 25.8% | 2 | 22.4% |
Population 65 Years and Above, 2018 | 12.3% | 49 | 12.6% | 48 | 16.0% |
Population Percent Change, 2010 to 2019 | 15.8% | 2 | 15.3% | 2 | 6.3% |
Per Capita Income, 2018 | $66,206 | 5 | $50,355 | 26 | $54,446 |
Unemployment Rate, 2019 | 2.6% | 4 | 3.5% | 27 | 3.7% |
Sources: U.S. Census Bureau, U.S. Bureau of Labor Statistics and U.S. Bureau of Economic Analysis.
The West Texas region and its 30 counties have many unique economic conditions and challenges. Midland County, with the city of Midland and Ector County, anchored by Odessa, are the region’s economic centers.
In all, the 2018 median age of the region’s residents was slightly younger than the state. Loving County, however, had the state’s oldest average population; it is also one of least populated. Hispanic and non-Hispanic whites split 93 percent of the region’s population almost evenly. While the region’s population growth has kept pace with the rest of the state, Midland County’s population rose almost twice as fast as did the state’s from 2010 through 2019.
This region had the state’s most volatile local economies in the past 10 years. It saw significant job growth; the Midland MSA’s employment rise nearly tripled the state rate. If the region were a state, it would have the fifth highest per capita income in the nation. The high concentration of extraction and transportation of natural resources industries differentiate the West Texas region from others in Texas.
If you have any questions or concerns regarding the material on this page, please contact the Comptroller’s Data Analysis and Transparency Division.