Brownsville still losing jobs, while McAllen ranks among Texas’ fastest-growing metros

The Rio Grande Valley’s labor market remains split between contraction and growth, according to new Texas Workforce Commission data that shows Brownsville continuing to lose jobs while McAllen posted enough gains to rank among the fastest-growing metro areas in Texas.

The Brownsville-Harlingen metro lost 2,300 jobs over the year in March, a 1.4% decline, while the McAllen-Edinburg-Mission metro added 3,100 jobs, or 1% annual growth.  

The Texas Workforce Commission specifically identified McAllen-Edinburg-Mission as one of the fastest-growing metropolitan areas in the state over the year in March.  

The latest report reinforces trends previously reported by the Rio Grande Valley Business Journal earlier this year, when January labor data showed Brownsville already slipping into annual job losses while McAllen’s growth had slowed significantly compared to previous years.

The updated figures suggest parts of the Valley economy are stabilizing, but major gaps remain between project announcements and broader labor market performance.

Brownsville remains in negative territory

The latest numbers show some improvement compared to January, when Brownsville-Harlingen was down 3,300 jobs year over year.

Still, the metro remains in contraction months after a series of major announcements tied to liquefied natural gas expansion, port activity, bridge infrastructure, and industrial development along the lower Texas coast.

The latest data indicates the metro lost 2,300 jobs over the year in March, a 1.4% annual decline, falling from 162,300 nonfarm jobs a year earlier to 160,000 jobs.

Brownsville-Harlingen’s labor market has also been dealing with manufacturing-related weakness tied to layoffs connected to First Brands Group’s bankruptcy and related impacts on both sides of the border.

The metro’s unemployment rate reached 6.4% in March — among the highest in Texas.  

McAllen posts stronger momentum

Meanwhile, McAllen-Edinburg-Mission showed stronger momentum than earlier this year.

The metro added 3,100 jobs over the year, compared to a gain of 1,700 jobs in January.

While growth remains modest compared to the scale of development activity taking place across the region, the latest report suggests McAllen’s labor market may be stabilizing after weaker gains earlier in the year.

The metro’s unemployment rate was 5.9% in March.  

The latest data comes as the upper Valley continues seeing healthcare expansions, hospitality projects, retail redevelopment, logistics activity, and manufacturing recruitment efforts.

The gap between announcements and jobs

The Valley economy continues operating in a transitional period where billion-dollar announcements tied to energy, manufacturing, logistics, hospitality, healthcare, and infrastructure have not yet fully translated into broad labor market strength.

That disconnect is becoming one of the defining economic dynamics across the region.

Texas overall added 46,800 nonfarm jobs in March, rebounding from a revised February decline and reaching a new statewide employment high of more than 14.4 million jobs.  

But unemployment across the Valley remains significantly above the statewide average.

Only Eagle Pass posted a higher unemployment rate than Brownsville-Harlingen among Texas metropolitan areas.  

Manufacturing remains soft statewide

The latest report also showed continued softness in manufacturing statewide.

Texas manufacturing added 600 jobs in March following gains in February, but the industry remained down 8,500 jobs year over year, a 0.9% decline statewide.  

The slowdown comes as South Texas economic development groups continue aggressively marketing nearshoring opportunities tied to Mexico, automotive suppliers, logistics, advanced manufacturing, and semiconductor growth.

Professional and business services posted the largest statewide monthly increase in March, adding 14,900 jobs, while trade, transportation, and utilities added 13,500 jobs statewide.  

Texas’ unemployment rate remained at 4.3% in March, matching the national unemployment rate.