Texas upstream oil and natural gas employment declined modestly in September, even as the state's broader economy continued to outperform the nation in annual job growth, according to newly released employment data.
The Texas Workforce Commission reported approximately 196,400 salaried jobs in the upstream oil and natural gas sector in September 2026, a decline of about 500 positions from August. Despite the monthly dip, employment remained 2,400 jobs higher than in September 2025.
The latest figures reflect a relatively stable employment picture for an industry that remains a major contributor to Texas' economy. Since September 2020, upstream oil and natural gas employment has increased by approximately 39,400 jobs, a gain of more than 25%, according to the Texas Oil & Gas Association (TXOGA).
The September employment numbers come as Texas continues to record annual job growth above the national rate. Statewide nonagricultural employment totaled approximately 14.46 million jobs in September, down 11,100 from August but up 154,300, or 1.1%, from a year earlier. Texas' annual employment growth rate exceeded the national rate by 0.8 percentage points.
The state's civilian labor force also expanded, adding 15,800 people during September to reach approximately 15.95 million. Texas' seasonally adjusted unemployment rate stood at 4.4%.
While the statewide figures point to continued annual economic growth, employment trends varied across industries. Manufacturing led private-sector job gains in September, adding 4,700 positions. Professional and business services added 1,600 jobs, while the mining and logging category, which includes oil and gas-related employment, shed 700 jobs.
Despite the September decline, the industry's longer-term employment growth remains notable. Upstream jobs support an estimated 232,000 additional indirect jobs through the supply chain and another 421,000 induced jobs through household spending. Together with direct employment, the sector supports approximately 849,000 jobs across the Texas economy, according to TXOGA.
TXOGA President Todd Staples commented, “Month-to-month, job numbers will move. Texas oil and natural gas exploration and production employment is up from a year ago and has grown by more than 25 percent since 2020. With global tensions weighing on industries worldwide, Texas producers keep delivering the energy Americans rely on every day while nearing historic production highs. To keep this momentum going, it is imperative that pro-reliable energy policies are prioritized to ensure our industry can grow the workforce and move product to market.”
The figures underscore the importance of the energy industry to the state's workforce. With upstream employment still above year-ago levels and Texas maintaining a stronger annual job growth rate than the nation, the September data suggest a modest slowdown rather than a broader reversal in the state's energy employment picture.