Texas employers had 159,400 more payroll jobs in August than a year earlier, the largest numerical increase of any state, while the state unemployment rate stood at 4.4%, according to federal estimates released Friday. The two measures describe an economy that is still adding jobs but has not produced the same improvement in unemployment for every worker.

Total nonfarm employment reached 14.47 million in August, up 1.1% over the year and 5,600 from July, the Bureau of Labor Statistics' Texas profile shows. The annual payroll increase was statistically significant; the smaller monthly change was not among the four state increases that BLS identified as statistically significant.

The unemployment rate edged down from 4.5% in July to 4.4% in August, but BLS did not classify that one-month move as statistically significant. Compared with August 2025, the rate was 0.2 percentage point higher, a statistically significant increase. The national unemployment rate was 4.1% in August. On the agency's state unemployment-rate ranking, Texas was tied at rank 37 when states were ordered from lowest rate to highest.

Those figures come from two separate federal surveys. The unemployment rate is derived from a survey of households and includes people who are working or actively seeking work. Payroll employment comes from a survey of employers and counts jobs rather than individual workers. Because the series have different sources and are revised on different schedules, a strong annual payroll gain can coexist with a higher unemployment rate.

Texas' labor force grew by an estimated 17,100 people in August to 15.93 million. Employment in the household survey rose by about 17,900, while the number of unemployed residents fell by roughly 900 to 707,500, according to the state data table. Those monthly estimates are seasonally adjusted and can change when BLS incorporates additional information.

The industry detail shows growth was uneven. Professional and business services had 67,000 more jobs than a year earlier, a 3.1% increase. Leisure and hospitality added 34,400, or 2.2%, while construction added 17,000, or 1.9%. Education and health services increased by 26,100. Information employment, however, was down 11,800, or 5.3%, and financial activities were down 1,500.

The latest month also carried mixed signals. Government payrolls increased by 5,900 and leisure and hospitality added 4,900 jobs from July. Professional and business services gained 4,500. Other services fell by 7,700, trade, transportation and utilities declined by 2,800, and both information and education and health services shed 1,700, according to the seasonally adjusted industry estimates. Individual monthly sector changes are subject to sampling error and later revision.

For workers and employers, the practical takeaway is that statewide job growth remains positive, but the headline total masks substantial differences by industry and does not by itself show whether residents are finding work quickly. The next state employment report, covering September, is scheduled for October 20 under the federal release calendar.