Texas' Job Boom Exposes Inequality: Workers Suffer as Corporations Thrive Under Abbott

Texas is basking in the glow of its own economic narrative. Governor Greg Abbott recently heralded the state’s record-breaking job creation, with 192,100 nonfarm jobs added from March 2024 to March 2025, outpacing every other state. The numbers are dazzling: a labor force of 15.8 million, 15.1 million Texans employed, and 14.3 million nonfarm jobs. It’s a story of triumph, one that paints Texas as a magnet for businesses and a haven for workers. But beneath this polished surface lies a troubling reality. The jobs fueling this boom often pay wages that can’t keep up with the state’s soaring cost of living, and the education system tasked with preparing the next generation is buckling under chronic underfunding.

For workers, the promise of a “booming economy” rings hollow when paychecks barely cover rent. Many of the new jobs, particularly in sectors like leisure and hospitality, offer median wages below $40,000 a year, while housing costs in cities like Dallas and Houston have surged by double digits since 2020. The influx of businesses, celebrated as a driver of growth, has inflated property values, pricing out the very workers the state claims to champion. This isn’t prosperity; it’s a treadmill where workers run faster to stay in place.

The governor’s rhetoric leans heavily on career and technical education as a solution, pointing to $1.3 million in job training grants and legislative pushes like House Bill 120 to expand programs. These efforts are commendable on paper, but they sidestep a deeper issue: the state’s public education system, the backbone of any skilled workforce, is fraying. Schools are closing, class sizes are ballooning, and teachers are fleeing for better pay elsewhere. If Texas is serious about sustaining its economic edge, it needs to prioritize the people behind the numbers, not just the numbers themselves.

This disconnect between the state’s boasts and its workers’ struggles demands a closer look. The narrative of Texas as an economic powerhouse is only half the story. The other half is a tale of inequality, strained schools, and a workforce stretched thin by policies that favor corporate interests over human needs.

Texas’ job growth is undeniable, with sectors like trade, transportation, and utilities adding thousands of jobs monthly. Yet, the quality of these jobs tells a different story. Data from the Bureau of Labor Statistics shows that many of the state’s fastest-growing industries, such as leisure and hospitality, offer median annual wages of $36,000, far below the $60,000 needed for a family of four to live comfortably in urban areas like Houston. Meanwhile, the state’s refusal to raise the minimum wage above the federal $7.25 an hour traps workers in a cycle of poverty, even as corporate tax breaks and incentive programs lure businesses with promises of profit.

Advocates for workers’ rights have long argued that economic growth without wage growth is a hollow victory. The Texas AFL-CIO has pointed out that while businesses benefit from no state income tax and lax regulations, workers face stagnant pay and rising costs. The state’s own data confirms this: despite adding 281,000 jobs through business relocations from 2010 to 2019, income inequality has worsened, with the top 1% of earners capturing a disproportionate share of economic gains. This isn’t a rising tide lifting all boats; it’s a wave that buoys the wealthy while leaving workers to tread water.

Some might argue that Texas’ low taxes and business-friendly climate create jobs that wouldn’t otherwise exist. But this perspective ignores the human cost. When workers can’t afford housing or healthcare, the state’s economic model starts to look less like a success and more like a subsidy for corporations at the expense of its people. Job training grants, like the $15 million Jobs and Education for Texans program, are a step forward, but they’re a bandage on a wound that requires structural change, like a living wage and stronger labor protections.

If Texas’ economy depends on a skilled workforce, its public schools are the engine that powers it. Yet, the state’s education system is in crisis. House Bill 2, passed in April 2025, boosts per-student funding to $6,555 and allocates $3 billion for teacher raises, but these measures fall short of what’s needed. Adjusted for inflation, per-student funding has declined since 2021, forcing districts to adopt deficit budgets, cut staff, and close schools. The Texas State Teachers Association estimates that a $1,300 per-student increase is necessary to restore pre-2019 purchasing power, a goal the state has yet to meet.

The push for career and technical education, while valuable, can’t compensate for a crumbling foundation. With 96% of CTE students graduating, programs like Pathways in Technology Early College High Schools show promise. But when schools lack resources for basic instruction, advanced training becomes a privilege, not a standard. Special education, too, is underfunded, with $1.5 billion in new funding barely addressing the needs of 600,000 students with disabilities. The looming threat of school vouchers, which could divert billions from public schools, only deepens the crisis.

Supporters of the current approach might claim that record funding levels prove the state’s commitment to education. But numbers without context mislead. Temporary federal relief funds propped up budgets, and their expiration has left schools scrambling. Texas’ failure to fully fund its schools undermines the very workforce it celebrates, leaving students unprepared for the high-skill jobs the state touts.

Texas stands at a crossroads. Its economic growth is real, but its benefits are unevenly distributed. To build a future where workers thrive, the state must invest in people, not just profits. Raising the minimum wage to a living standard, strengthening labor protections, and ensuring affordable housing are critical steps. These policies would empower workers to share in the prosperity they create, rather than watching it flow to corporate boardrooms.

Education, too, demands bold action. Fully funding public schools, not just with headline-grabbing sums but with inflation-adjusted dollars, is non-negotiable. Teachers deserve salaries that reflect their value, and students deserve schools that can prepare them for a changing economy. By prioritizing people over tax breaks, Texas can create an economy that works for everyone, not just the few.

The story of Texas’ job boom is one of potential, but also of missed opportunities. Workers and students deserve more than applause for their resilience; they deserve policies that match the state’s ambition with real-world impact. Only then will Texas’ economic miracle live up to its promise.