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Introduction
Regional Labor Market Analysis
We saw a solid win for our economy in March 2026, as our regional unemployment rate dropped to 3.4%. This is a notable improvement from the 3.7% we reported in February and keeps us well ahead of the broader trend lines. To put our performance in perspective, our jobless rate is currently 0.7 percentage points lower than the Texas average of 4.1%.
While we are celebrating this move toward full employment, we are keeping a close eye on a labor force dip. Our regional labor force moved from 217,442 in February down to 213,013 in March. While March typically kicks off a seasonal expansion for us, this year’s data reflects a recalibration of 4,429 participants in our local labor pool.
 This means that while more of our neighbors are finding work, our total pool of available job seekers is currently leaner than it was this time last year. Our numbers show that we remain incredibly resilient, though we are currently in a "job-rich, worker-lean" phase. For our local employers, this reinforces that the focus for 2026 should stay on retention and internal development while we navigate this tightening of our talent pool.
Amarillo (City) Labor Market Highlights
Looking at our backyard, the Amarillo city limits saw an even sharper improvement in the unemployment rate, dropping to 3.5% in March from 3.8% in February. While this is a win, we are following the regional trend of a tightening labor pool.
Our city's labor force dipped by 1,106 participants this month, bringing our total active count to 105,287. Because the labor force contracted while employment remained relatively steady, we now have 373 fewer unemployed neighbors looking for work than we did in February.
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Unemployment Rate: Decreased to 3.5% in March 2026, down from 3.8% in February.
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Labor Force: Stood at 105,287, reflecting a slight year-over-year contraction of 116 workers.
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Employment: Total city employment reached 101,640, a decrease of 530 jobs compared to March 2025.
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Market Context: While the 3.5% rate is higher than last year's 3.1%, the recent dip in participation indicates the local market is becoming highly competitive again. Success for city employers now depends on connecting with the specific talent still active in our local pool.
Panhandle WDA Labor Market Highlights
Across our broader region, the Panhandle WDA mirrored the positive movement we saw in the city. Our regional unemployment rate fell to 3.4% in March, down from 3.7% in February. This drop shows our local economy remains exceptionally healthy, especially as we continue to outperform both the state and national averages.
The primary driver behind this lower rate was a labor force dip. Our regional labor force decreased by 4,429 participants over the last month, bringing our total active count to 213,013. While we typically see more people entering the workforce this time of year, this recalibration means we have 853 fewer unemployed neighbors actively looking for work than we did in February.
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Unemployment Rate: Decreased to 3.4% in March 2026, down from 3.7% in February.
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Labor Force: Settled at 213,013, reflecting a year-over-year contraction of 968 workers.
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Employment: Total regional employment stood at 205,795, a decrease of 1,430 jobs compared to March 2025.
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Market Context: Our 3.4% rate is a strong indicator of regional stability, though it is slightly up from the 3.2% we saw last March. The current tightening of the labor force underscores that our regional market is becoming more competitive, shifting the focus toward maximizing our existing talent pool and connecting available workers with the right opportunities.
Texas Labor Market Highlights
The broader state numbers followed a similar downward trend, with the Texas unemployment rate dropping to 4.1% in March, down from 4.4% in February. This performance keeps the state in a strong position, though our local region continues to outpace the statewide average by a significant margin.
Mirroring our local experience, the state saw a reduction in the labor force of 50,825 participants. However, even with this shift, Texas managed to grow its total employment by 2,068 jobs over the month. This combination of steady hiring and a leaner labor pool led to a decrease of 52,893 unemployed individuals across the state.
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Unemployment Rate: Decreased to 4.1% in March 2026, down from 4.4% in February.
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Labor Force: Stood at 15,852,300, representing a year-over-year expansion of 11,331 workers.
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Employment: Total state employment reached 15,203,256, an increase of 3,658 jobs compared to March 2025.
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Market Context: While the state as a whole is seeing a slight year-over-year increase in the unemployment rate, up from 4.0% in March 2025, the current 4.1% remains historically healthy. The statewide data confirms that the shifts we are feeling locally are part of a larger, state-level recalibration as we move through the year.
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
Contact the Business Services Team at businessservices@wspanhandle.com for occupation-specific wage data.
 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
Our regional economy remains anchored by a diverse industry mix that balances goods production with steady service sector growth. While total nonfarm employment sits at 130,200, the strength of our service industries continues to provide a reliable buffer against seasonal shifts.
Sector Performance Highlights
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Trade, Transportation, and Utilities: This remains our largest sector with 27,800 jobs, showing steady annual growth.
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Education and Health Services: A cornerstone of local employment, this industry maintains a stable base of 25,600 jobs.
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Mining, Logging, and Construction: This sector continues to show the strongest momentum, growing 5.9% over the past year.
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Manufacturing: Despite a recent monthly dip, this industry provides 13,100 essential jobs to our industrial base.
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Leisure and Hospitality: This sector added 400 jobs annually, reflecting a consistent 2.6% expansion.
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Professional and Business Services: Continued business confidence is evident here, with 10,700 jobs and a 1.9% annual increase.
Texas MSA Rankings - March 2026
Our region continues to stand out on the state stage, maintaining its reputation as one of the most stable economies in Texas. In the latest rankings of all 27 Metropolitan Statistical Areas (MSAs), Amarillo remains a top-tier performer for low unemployment.
We currently hold the #6 spot in the state for the lowest unemployment rate at 3.4%. This puts us in elite company, tied with Austin-Round Rock-San Marcos and sitting just behind other strong markets like Midland, Abilene, and Lubbock. Being ranked in the top ten across the entire state is a testament to the consistency of our local business community.
Ranking Performance
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Unemployment Rate: Ranked #6 in Texas at 3.4%.
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Monthly Job Growth: Ranked #26 with a rate of -0.4%, representing a seasonal adjustment of 500 jobs.
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Annual Job Growth: Ranked #17 in the state, maintaining a positive growth rate of 0.1% and adding 100 jobs over the past year.
While we saw a temporary dip in monthly job growth, a common occurrence during the transition from winter into the busier spring months, our annual growth remains in positive territory. Even with a leaner labor force, we are maintaining our position as a leader in employment stability, outperforming much larger metropolitan areas like Dallas, Houston, and San Antonio in our jobless rate.
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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 8th.
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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