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The labor market data for December 2025 does not reflect the recent Tyson Fresh Meats layoff, which affected approximately 1,700 employees. The impact of this layoff is expected to be reflected in the Texas Workforce Commission’s next LMI release in March 2026.
Strength in a Competitive Labor Market
The Panhandle Workforce Development Area continued to demonstrate a strong labor market at the close of the year. The regional unemployment rate declined from 3.2% in November to 2.9% in December, remaining a full percentage point below the Texas average of 3.9%. While total employment dipped slightly with a decrease of 1,760 jobs, this modest monthly fluctuation is outweighed by solid annual gains. Compared to December 2024, regional employment increased by 4,408 jobs, reflecting sustained growth and long-term stability across the workforce.
These trends point to a resilient regional economy that continues to support both workers and employers. Low unemployment indicates strong labor demand, signaling business confidence and ongoing economic activity throughout the Texas Panhandle. For employers, the tight labor market emphasizes the importance of talent attraction, retention, and workforce development strategies, while also reflecting healthy consumer activity and expanding opportunities. Overall, the Panhandle’s employment gains and below-average unemployment rate position the region well for continued economic momentum and strategic growth in the coming year.
Amarillo (City) Labor Market Highlights
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Unemployment Rate: Decreased from 3.1% in November 2025 to 2.7% in December, signaling a tightening labor market.
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Labor Force: Increased by 1,495 workers over the year, reaching 106,866 in December 2025, indicating continued workforce participation and population engagement.
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Employment: Grew by 1,312 jobs, rising from 102,621 in December 2024 to 103,933 in December 2025, reflecting steady job creation.
What this means to Employers: Employers are operating in a highly competitive hiring environment with low unemployment and sustained job growth. While the expanding labor force offers some relief, attracting and retaining talent will remain a priority, making competitive wages, workplace culture, and training opportunities increasingly important.
Panhandle WDA at a Glance
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Unemployment Rate: Declined to 2.9% in December 2025, remaining well below the Texas average of 3.9% and signaling strong labor demand.
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Labor Force: Expanded by 4,793 workers over the year, reaching 216,527 in December 2025, reflecting continued population and workforce growth across the region.
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Employment: Increased by 4,408 jobs year over year, rising from 205,831 in December 2024 to 210,239 in December 2025, indicating sustained job creation.
What this means to Employers: Employers across the WDA are benefiting from a growing labor force, but the low unemployment rate keeps competition for talent high. Strategic recruitment, retention, and partnerships with workforce and training providers will be key to maintaining momentum and supporting continued economic growth.
Texas Labor Market Snapshot
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Unemployment Rate: Increased from 3.7% in December 2024 to 3.9% in December 2025, though it declined by 0.3 percentage points from November, suggesting short-term improvement within a slightly higher year-over-year rate.
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Labor Force: Expanded by 193,819 workers over the year, reaching 15,931,415 in December 2025, reflecting continued population growth and strong labor force participation statewide.
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Employment: Increased by 153,358 jobs from last year, rising to 15,307,152, demonstrating ongoing job creation across Texas.
Big Picture: Texas continues to add workers and jobs at scale, signaling a resilient and growing statewide economy. While the unemployment rate has edged up year over year, recent monthly improvement and strong labor force growth suggest the state is absorbing new workers and maintaining economic momentum across diverse industries.
Area Wage Insights
Wages in Amarillo and the Panhandle WDA reflect a competitive job market. Using Q2 2025 data, we’ve outlined hourly and yearly earnings to guide your compensation strategies.
Amarillo (City) Wage Highlights
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Average Hourly Wage: $25.97
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Average Yearly Wage: $54,008
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Total Wages Paid: $1,8162,040,164 for 124,510 employees across 7,077 establishments
Panhandle WDA Wage Highlights
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Average Hourly Wage: $25.53
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Average Yearly Wage: $53,102
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Total Wages Paid: $2,884,192,877 for 197,581 employees across 12,367 establishments
Competitive wages are critical in a low-unemployment environment (3.2% in Amarillo, 3.4% in WDA). Contact the Business Services Team at businessservices@wspanhandle.com for occupation-specific wage data.
Amarillo MSA Job Growth
The Amarillo MSA posted a strong 1.0% annual job growth rate in December 2025, outperforming the Texas average of 0.8% as well as neighboring MSAs such as Lubbock (0.5%) and Abilene (0.3%). This above-average performance highlights Amarillo’s continued economic momentum and regional competitiveness. Employment gains were led by healthcare, education, manufacturing, and hospitality, reflecting both population-driven demand and sustained activity in core industries that support the local economy.
Looking ahead, employers should prioritize workforce planning strategies that support growth in these high-demand sectors. Emphasis on talent attraction, retention, and upskilling will be increasingly important, particularly as labor markets remain tight. Strengthening partnerships with education and training providers, investing in employee development, and remaining competitive in wages and benefits will help employers meet staffing needs and maintain long-term stability.
For a deeper look at which industries are driving growth, our Business Services Unit can provide occupation-specific data tailored to your needs. Reach out to our Business Services Team for more information.
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Amarillo MSA Job Growth Rankings
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Unemployment Rate Ranking: Amarillo once again takes 1st place among Texas MSAs at 2.8%, ahead of Midland and San Angelo (both 2.9%) and College Station–Bryan, Abilene, and Lubbock (tied at 3.1%).
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Monthly Job Growth Ranking: Amarillo rose in the rankings to 5th place in a 10-way tie with a 0.2% increase, adding 300 jobs over the month.
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Annual Job Growth Ranking: Amarillo climbed to 10th place, tied with Laredo, with a 1.0% annual growth rate, adding approximately 1,300 jobs.
WorkInTexas.com
Looking for a better way to find your next hire? WorkInTexas.com is here for you. This free tool connects you with qualified job seekers in your area. Posting jobs is easy, and our Employment Services team is ready to assist you every step of the way. Give us a call at (806) 372-5521 to get started today!
Resources for Employers
Take advantage of our recruitment and training services to address staffing needs. Learn more about hiring incentives, upskilling programs, and other workforce resources by visiting our website.
For more information or assistance, contact Workforce Solutions Panhandle today.
Dear Texas Panhandle Employer,
The We Hire Vets program recognizes Texas employers who demonstrate a strong commitment to hiring veterans.
Does your company employ veterans? If at least 10% of your employees are veterans, your business is eligible to receive a We Hire Vets storefront decal and a digital badge for your website.
If you have previously received this recognition, please re-enroll for 2025 to maintain your participation.
Sign up today and be recognized at the Texas Workforce Commission’s Texas Conference for Employers on Friday, May 9th.
To get started, contact Anthony at 806-282-1146 or email him at anthony.torres@twc.texas.gov. Provide the following details:
- Nominator Name
- Email Address
- Phone Number
- Cell Number
- Employer Name
- Address
- TWC Tax Account Number
- Total number of employees in Texas
- Total number of employees in Texas who are veterans
- Percentage of veterans working for the employer in Texas
- Point of Contact Name
- Point of Contact Email Address
- Point of Contact Phone Number
Explore the list of other participating employers here:
We Hire Vets Participants.
We appreciate your support and look forward to recognizing your organization’s commitment to hiring veterans.
Thank you,
Workforce Solutions Panhandle
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Questions? Contact Us
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Shannon L. Rowell
Business Services Representative
Workforce Solutions Panhandle
(806) 350-1660
srowell@wspanhandle.com
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