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The January 2026 labor market data from the Texas Workforce Commission (TWC) confirms the impact of the Tyson Fresh Meats closure on our region. As anticipated, the regional unemployment rate saw an upward shift following the reduction of approximately 1,700 positions. Despite this, the Texas Panhandle continues to maintain a lower unemployment rate than both the state and national averages.
Regional Labor Market Analysis
Our regional unemployment rate rose to 3.5% in January 2026, up from 2.9% in December. While this represents a notable month-over-month increase, we remain a full percentage point below the Texas state average of 4.5% and well below the national rate of 4.7%.
On an annual basis, our region continues to show growth. Compared to January 2025, our civilian labor force expanded by 1,628 workers, and total employment increased by 1,219 jobs. While we are currently absorbing the immediate impact of major manufacturing layoffs, our long-term data indicates a larger available workforce than we had this time last year.
Amarillo (City) Labor Market Highlights
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Unemployment Rate: Increased to 3.3% in January 2026, up from 2.7% in December. Despite this shift, Amarillo continues to hold the #1 ranking among all Texas MSAs for the lowest unemployment rate.
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Labor Force: Reached 105,863, reflecting a year-over-year expansion of 1,089 workers.
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Employment: Total employment stood at 102,378, an increase of 859 jobs compared to January 2025.
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Market Context: A 3.3% rate remains historically tight. While the recent layoffs have increased the immediate pool of available labor, the city continues to operate in a highly competitive environment for specialized talent.
Panhandle WDA Labor Market Highlights
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Unemployment Rate: Rose to 3.5% in January 2026. This 0.6 percentage point increase from December (2.9%) aligns with the anticipated impact of regional manufacturing layoffs.
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Labor Force: Expanded to 215,159, adding 1,628 participants to the workforce since January 2025.
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Employment: Total regional employment reached 207,727, maintaining an annual gain of 1,219 jobs despite the monthly contraction.
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County Performance: Randall County maintained a low of 3.1%, while Potter County sat at 3.7%. The regional highs were recorded in Roberts (5.3%) and Hemphill (5.2%), while Armstrong, Castro, and Dallam shared the regional low of 2.9%.
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Claims Activity: Weekly unemployment claims saw a sharp climb, ending the month of January at 427 total claims for the WDA.
Texas Labor Market Highlights
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Unemployment Rate: Increased to 4.5% in January 2026, up from 3.9% in December. The state rate remains a full percentage point higher than the Panhandle regional average.
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Labor Force: The statewide labor force stands at 15,838,900, representing an annual expansion of 69,258 workers.
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Employment: Total state employment reached 15,126,189. While Texas added 16,726 jobs over the last year, it experienced a significant seasonal and monthly decrease of over 171,000 jobs from December to January.
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Growth Rankings: Despite the monthly dip, the Amarillo MSA maintained a competitive position. As of December 2025, we posted a 1.0% annual job growth rate, outperforming major metros like Austin (0.7%), Houston (0.4%), and Dallas-Fort Worth (0.3%). By January 2026, our annual growth rate climbed to 1.7%, ranking 6th in the state.
Area Wage Insights
Our regional wage structure is a primary driver in a competitive hiring environment. Based on the latest 2024 benchmarked data from the Occupational Employment and Wage Statistics (OEWS) program, the mean hourly wage across all occupations in the city of Amarillo is $25.82, while the regional Panhandle WDA mean is $25.68.
Amarillo (City) Top Occupational Wages
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Management: $52.07 mean / $24.85 entry
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Legal: $50.25 mean / $21.33 entry
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Healthcare Practitioners: $43.86 mean / $20.76 entry
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Architecture & Engineering: $43.82 mean / $25.07 entry
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Computer & Mathematical: $41.28 mean / $22.86 entry
Panhandle WDA Top Occupational Wages
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Management: $52.36 mean / $24.59 entry
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Legal: $47.94 mean / $20.16 entry
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Architecture & Engineering: $46.74 mean / $26.18 entry
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Healthcare Practitioners: $42.32 mean / $20.22 entry
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Computer & Mathematical: $42.00 mean / $22.55 entry
Contact the Business Services Team at businessservices@wspanhandle.com for occupation-specific wage data.
Industry Composition and Sector Strength
As of Q3 2025, our regional employment landscape remains anchored by two primary sectors that account for over 40% of our total workforce. These pillars provide the stability necessary to absorb fluctuations in other more volatile industries.
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Education and Health Services: This remains our largest employment sector, representing 21.3% of the total regional workforce (41,993 employees).
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Trade, Transportation, and Utilities: Our second-largest pillar, comprising 20.1% of all workers (39,674 employees).
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Manufacturing: Holds 14.3% of the workforce (28,209 employees). While currently facing headwinds with a -0.4% quarterly dip, it remains our third-largest employer.
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Natural Resources and Mining: Demonstrated the strongest annual resilience with a 4.6% annual increase in employment.
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Construction: Continued its upward trajectory with a 4.5% annual growth rate, reflecting ongoing regional development.
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Public Administration: Showed notable annual growth of 3.7%, bringing employment in this sector to 8,564.
Texas MSA Rankings - January 2026
According to the preliminary January 2026 rankings for Texas Metropolitan Statistical Areas (MSAs), Amarillo remains a top-tier performer in the state despite broader seasonal adjustments.
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Unemployment: Amarillo holds the #1 rank in Texas with a 3.3% unemployment rate.
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Statewide Comparison: We currently outperform Midland (3.4%), San Angelo (3.5%), and Austin (3.7%) in maintaining the lowest jobless rate in the state.
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Annual Job Growth: Amarillo ranks 6th in Texas for annual job growth at 1.7%, adding 2,200 jobs over the last year.
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Growth Benchmarks: This growth rate exceeds that of major hubs like Dallas (1.0%), Fort Worth (1.0%), and Houston (0.7%).
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Monthly Performance: While Amarillo experienced a seasonal monthly contraction of -0.9% (a loss of 1,200 jobs), we remained more resilient than Austin (-1.1%) or Dallas (-1.2%).
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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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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