Expert says Texas workforce growth continues to show dominance

Editor’s Note: This is the latest in a series that looks in depth at the recent State of Workforce and Education Summit 2023.

Bryan Daniel, Chairman of the Texas Workforce Commission, did not mince words when it came to his opinion of where he works hailing Texas as the “greatest state in the nation.” In a speech delivered at the State of Workforce & Education Summit 2023, Daniel highlighted the state’s economic and workforce development achievements. The event, hosted by the San Marcos Area Chamber of Commerce and the Greater San Marcos Partnership, provided a platform for Daniel to share his insight and observations about the current state of the Texas economy and the challenges it faces.

“Texas absolutely is the greatest state in the nation, and not just for economic development and workforce development, but just because we’re Texas,” Daniel said. While acknowledging the likely disagreement from Californians, he stressed that even many transplants share his sentiment about the state’s prowess.

Daniel emphasized Texas’ consistent success in garnering Economic Development Awards, boasting 19 years in a row as the best state for business. He highlighted the state’s streak of 21 consecutive months of record-breaking employment figures, surpassing the 15 million mark in the civilian workforce with 14.4 currently working. Texas’ unemployment rate is 4.1%, which he said was one of the lowest it has been behind pre-pandemic numbers in the 3.5% range.

“So 3.4% is pretty much like full employment,” Daniel said. “4.1% tells us that there’s 600,000 people in the state that are not working right now but are telling us that they would like to have a job. They’re looking for a job, and they think they want to do that job in Texas. These numbers are good numbers.”

Texas outshone all other states in job creation, and Daniel attributed this success to the welcoming environment for employers seeking opportunities to flourish.

“We had 31,000 jobs in June alone and 50,000 the month before that,” Daniel said.

We’ve got to 500,000 jobs in the last 12 months. That would all indicate to me that those employers are deciding that Texas is the place.”

He addressed concerns regarding the sustainability of this growth, acknowledging that skeptics wonder how long employers can continue generating new jobs at such a rate.

Daniel acknowledged the challenges employers face in finding the right candidates amidst technological advancements and shifting workforce dynamics.

The heart of Daniel’s message revolved around the importance of skill development and training to help employers fill those new jobs. He said that approximately 56% of jobs in Texas do not necessitate a university degree, but they do require training beyond high school.

Daniel said that 27% of the Texas workforce lacks any training after high school, a significant factor in the existing skills gap.

The chairman urged employers and job seekers to embrace a new mindset, emphasizing that the traditional tools and tactics that once worked are becoming outdated rapidly due to the rapid pace of technological evolution.

Daniel highlighted that the key to addressing the skills gap lies in individuals continuously upgrading their skills to match the demands of the evolving job market.

He talked about trying to help create training opportunities to help pivot to these new jobs.

“I think sometimes there’s even more of an opportunity than that,” Daniels said. “Would it shock you to know that there are 1.2 million people actively engaged in the Texas Workforce that do not have a high school diploma? That shocked me. There’s 3 million adults in Texas that don’t have a high school diploma, 2 million are non institutionalized and of working age, so between 25 and 65, and 1.2 million of those are working and have no high school diploma whatsoever. What if they just leveled up? What if that 1.2 million people just leveled up?” We’ve got new people to train that want to be trained, that have opportunities. And we can build you a system that lets that be seamless in what you’re already doing.”

He also encouraged collaboration between businesses, educational institutions, and government agencies to build a comprehensive system that offers opportunities for workers to update their skills.

Employers were urged to step away from hiring strategies that poach talent from other companies and instead engage in partnerships that promote skill development and growth.

Daniel concluded by emphasizing the potential within the Texas economy.

“We’ve not yet begun to reach our potential,” he said.

He urged employers to recognize that the landscape of workforce development has changed and that the tools and tactics must change in response.