The state of Texas continues to demonstrate its resolute economic viability and attractiveness, particularly to its native residents. Recent analysis by the Federal Reserve Bank of Dallas highlights Texas as the “stickiest” state in the nation—a term signifying the high retention rate of its native populace. This phenomenon underscores a critical advantage rooted in economic stability, diversified industry, and advantageous fiscal policies.
Census Bureau migration data reveals that 82% of Texans born in the state remained there in 2021, a compelling statistic affirming Texas’s ability to retain its citizens. This high retention rate contrasts starkly with states like Wyoming, North Dakota, Alaska, Rhode Island, and South Dakota, which experience considerable outmigration. The economic implications of such trends are significant. A stable or growing population and workforce are essential to sustained economic growth and prosperity. Without sufficient employment opportunities and economic stability, residents may be compelled to relocate in search of better prospects, a challenge less prevalent in the Lone Star State.
Texas’s low outmigration rate is another testament to its strong economic health. Factors contributing to the state’s allure include the absence of a state income tax and a low cost of living—ranked 15th lowest in the country—coupled with a climate conducive to year-round activity and robust urban centers that foster a strong state identity. Governor Greg Abbott has also emphasized the economic dynamism of Texas, noting that the state continues to attract new residents due to its high-paying jobs and lower living costs. Texas’s booming job market has set record highs in employment and labor force participation, indicative of a thriving economic landscape.
April of 2023 saw Texas experience job growth rates triple those of the national average, with continuous positive annual job growth observed for 37 consecutive months. Notably, in March, the Houston area alone added the second-largest number of nonfarm jobs in the country. These metrics are further bolstered by Texas’s consistent ranking as the best state for business, a title it has held for two decades. This pro-business environment is facilitated by the state’s lack of corporate and personal income taxes, young and skilled workforce, and robust infrastructure.
The state’s achievements do not stop at private-sector performance; Texas’s semiconductor manufacturing and the oil and natural gas industries have also seen significant victories. The latter broke multiple records in 2023, demonstrating unprecedented levels of production, exports, and tax contributions. The oil and natural gas sector’s performance underscores Texas’s critical role in the national energy economy.
Texas’s economic vitality is further demonstrated by its population trends. The state experienced the highest influx of new residents in 2023 compared to any other state. Census data attributes this trend to Texas’s formidable job growth and economic expansion, which serve as a magnet for individuals and businesses alike. This influx is not merely anecdotal; it is reflected in the designation of several Texas counties as economic powerhouses and numerous Texas cities being recognized for strong career growth opportunities.
Governor Abbott articulates a vision where Texas stands as a paragon of economic freedom and opportunity. Entrepreneurs and business leaders are continually drawn to the competitive advantages that Texas presents, leading to an environment ripe for business relocation and expansion. With its strategic investments in education, workforce development, and infrastructure, Texas maintains its position as a leading state for business and economic growth.
In summary, the characteristically “sticky” nature of Texas, complemented by its robust economic policies, attractive fiscal environment, and strategic focus on development, sets it apart as an exemplary state in the union. The story of Texas is one of sustained growth and opportunity, making it a focal point for those seeking prosperity and stability.
