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Texas employment growth slowed sharply in February, per a new report from the Federal Reserve Bank of Dallas. 

Why it matters: Lower immigration is constraining the state's labor supply, while higher productivity is leading to less demand for labor.

"Meanwhile, high oil prices are expected to boost state economic activity only if they are sustained," said Luis Torres, Dallas Fed senior business economist.

The big picture: Texas added 3,800 jobs in February, growing an annualized 0.3 percent. 

The Dallas Fed now expects Texas jobs will increase roughly 1% in 2026, Torres said.

Zoom out: Job losses in February were reported in multiple sectors, including trade and transportation, oil and gas, and construction, education and health services, which had been growing at a solid pace, per the report.

Other sectors, including professional and business services and manufacturing, posted job gains.

Zoom in: Dallas registered nearly flat employment growth in February at 0.1%. Fort Worth, Houston, Austin and San Antonio all posted job losses, per the report.

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Texas job growth slowed in February

Job losses in February were reported in multiple sectors.

Illustration of a tortoise with a shell made out of hundred dollar bills.

Texas employment growth slowed sharply in February, per a new report from the <a class="gtmContentClick" data-vars-link-text="Federal Reserve Bank of Dallas" data-vars-click-url="https://www.axios.com/local/dallas/2026/04/15/insurance-premiums-dallas-fed" data-vars-content-id="1bc659b4-82d1-43c1-a09e-6ffe51e65cee" data-vars-headline="Texas job growth slowed in February" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/dallas/2026/04/15/insurance-premiums-dallas-fed" target="_self">Federal Reserve Bank of Dallas</a>. Why it matters: <a class="gtmContentClick" data-vars-link-text="Lower immigration" data-vars-click-url="https://www.axios.com/local/dallas/2026/04/03/growth-slows-across-u-s" data-vars-content-id="1bc659b4-82d1-43c1-a09e-6ffe51e65cee" data-vars-headline="Texas job growth slowed in February" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/dallas/2026/04/03/growth-slows-across-u-s" target="_self">Lower immigration</a> is constraining the state&#x27;s labor supply, while higher productivity is leading to less demand for labor.

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Across Texas, we're keeping our eye on several big stories this year.

Every major statewide elected office is on the ballot this year. First up: the primary elections. Early voting starts in just over six weeks. 

The race for U.S. Senate features a marquee matchup on the Republican and Democratic sides that are attracting national attention — and money. 

Gov. Greg Abbott and Lt. Gov. Dan Patrick are seeking fourth terms. Their reelection would lock in conservative state leadership for another four years.

The big picture: State lawmakers redrew the state's congressional map to elect as many as five more Republicans to the U.S. House. Whether that happens will hinge on if Latinos continue to shift toward the GOP.

The $1 billion state program to provide public money for private school tuition is launching this year, with most participating families receiving roughly $10,000 a year per eligible student.

What we're watching: How many families apply for vouchers and how public and private schools will be affected.

A new state law aimed at restricting Texans' access to mail-order abortion medication will test shield laws in blue states, where doctors have prescribed abortion pills like mifepristone through the mail.

The Supreme Court could ultimately decide the fate of the Texas law. 

Another hot summer could test the Texas grid.

The state's population will continue to grow, and new energy-hungry data centers are expected to go online as the once-booming renewable energy industry slows with the end of federal subsidies. 

test whether Latinos continue their shift

What we're watching in Texas in 2026

From elections to school vouchers, here are the stories we're watching in 2026.

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Across Texas, we&#x27;re keeping our eye on several big stories this year.

Election

North Texas will host the World Cup defending champion Argentina and one of the biggest long shots, Jordan. 

Why it matters: Some of the best teams and players in soccer will be playing in Arlington over the next few weeks.

The big picture: Dallas Stadium (formerly AT&T Stadium) is hosting five group-stage matches, featuring eight teams. 

Four knockout round games will also be played at the stadium. 

State of play: Three teams playing group-stage matches in North Texas are perennial powerhouses and hope to make deep runs in the tournament.

🇦🇷 Argentina, ranked No. 1 in the latest FIFA world ranking, play No. 24 Austria on June 22 and No. 63 Jordan on June 27.

🏴󠁧󠁢󠁥󠁮󠁧󠁿 England, ranked No. 4, play No. 11 Croatia on June 17. 

🇳🇱 The Netherlands, ranked No. 8, play No. 18 Japan on Sunday. 

The intrigue: Jordan's odds of winning the World Cup are 2,500-1, tied for the longest odds with Curaçao and Haiti. 

Zoom in: There are plenty of storylines coming into World Cup play at Dallas Stadium. Here are some players to watch.

The GOAT Lionel Messi has scored 117 goals for Argentina. He needs four more goals to become the highest-scoring player in World Cup history.

English captain Harry Kane is in peak form, having scored 36 goals for Bayern Munich in Bundesliga games this past season.

Croatia's Luka Modrić is considered one of the greatest midfielders of all time. He's also 40, making him among the oldest players at this World Cup.

How to watch the World Cup in Dallas-Fort Worth

What to know about the World Cup in Dallas

The World Cup games and players to watch in Dallas

Lionel Messi and Harry Kane are coming to Dallas Stadium.

Lionel Messi in his Argentina uniform celebrates on the soccer pitch. 

Lionel Messi of Argentina celebrates after scoring a goal during the friendly match between Argentina and Iceland on Thursday. Photo: Omar Vega/Getty Images

North Texas will host the World Cup defending champion Argentina and one of the biggest long shots, Jordan. Why it matters: Some of the best teams and players in soccer will be playing in Arlington over the next few weeks.

Sports

🧨 See the explosions, hear the boom. Ida Claire's annual Kaboomtown Block Party in Addison features a DJ, Fourth of July food and cocktails, yard games, and a front-row seat to the renowned fireworks show.

Friday, 7 -10:30pm. Tickets start at $15.

📚 Go old school. Dallas' official celebration will be at Klyde Warren Park with food trucks, live music from Emerald City Band and the grand finale lighting up the city skyline.

🎇 Feel patriotic. Catch more fireworks displays at these free events: 

🐕 Cheer on your pup. Enter your dog in pet contests at Paws and Stripes at Frisco Freedom Fest.

Friday, 6-10pm at Kaleidoscope Park. Entry $12 per event.

⚽️ Celebrate soccer. Head to the FIFA Fan Festival at Fair Park to watch live soccer matches on the big screens.

Watch fireworks Friday at the conclusion of the Colombia vs. Ghana match that begins at 8:30pm. Free with advanced registration.

🏅 Tap along to patriotic tunes. Celebrate America's 250th at Freedom Fest at the National Medal of Honor Museum in Arlington. 

Saturday and Sunday, culminating in a live performance by the 1st Cavalry Division Band on Sunday, 7:30-9pm, followed by a viewing party of Light Up Arlington fireworks show at 9:30pm. General admission tickets start at $30.

Plan your July Fourth weekend: Fireworks, music, pups

Illustration of the Axios "A" with a firework leaning against it. 

🧨 See the explosions, hear the boom. Ida Claire&#x27;s annual Kaboomtown Block Party in Addison features a DJ, Fourth of July food and cocktails, yard games, and a front-row seat to the renowned fireworks show.<ul><li>Friday, 7 -10:30pm. <a class="gtmContentClick" data-vars-link-text="Tickets" data-vars-click-url="https://ida-claire.com/whats-goin-on/addison-tx/celebrate-kaboomtown-with-ida" data-vars-content-id="b1274146-6383-4420-91ce-2886192d133a" data-vars-headline="Plan your July Fourth weekend: Fireworks, music, pups" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://ida-claire.com/whats-goin-on/addison-tx/celebrate-kaboomtown-with-ida" target="_blank">Tickets</a> start at $15.</li></ul>📚 Go old school. Dallas&#x27; official celebration will be at <a class="gtmContentClick" data-vars-link-text="Klyde Warren Park" data-vars-click-url="https://www.klydewarrenpark.org/events-programming/idc2025-sbnc2" data-vars-content-id="b1274146-6383-4420-91ce-2886192d133a" data-vars-headline="Plan your July Fourth weekend: Fireworks, music, pups" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.klydewarrenpark.org/events-programming/idc2025-sbnc2" target="_blank">Klyde Warren Park</a> with food trucks, live music from Emerald City Band and the grand finale lighting up the city skyline.<ul><li>Saturday, 7-9:30pm. Free.</li></ul>🎇 Feel patriotic. Catch more fireworks displays at these free events: <a class="gtmContentClick" data-vars-link-text="Irving" data-vars-click-url="https://www.irvingtexas.com/event/sparks-%26-stripes-2026%3A-fireworks-%26-drone-show/40262/" data-vars-content-id="b1274146-6383-4420-91ce-2886192d133a" data-vars-headline="Plan your July Fourth weekend: Fireworks, music, pups" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.irvingtexas.com/event/sparks-%26-stripes-2026%3A-fireworks-%26-drone-show/40262/" target="_blank">Irving</a>, 7pm Friday. <a class="gtmContentClick" data-vars-link-text="Grandscape" data-vars-click-url="https://www.grandscape.com/event/red-white-and-blue/2026-07-03/" data-vars-content-id="b1274146-6383-4420-91ce-2886192d133a" data-vars-headline="Plan your July Fourth weekend: Fireworks, music, pups" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.grandscape.com/event/red-white-and-blue/2026-07-03/" target="_blank">Grandscape</a> in The Colony, 7:30pm Friday.<a class="gtmContentClick" data-vars-link-text="Fort Worth" data-vars-click-url="https://fortworthsfourth.com/" data-vars-content-id="b1274146-6383-4420-91ce-2886192d133a" data-vars-headline="Plan your July Fourth weekend: Fireworks, music, pups" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://fortworthsfourth.com/" target="_blank">Fort Worth</a>, 5pm Saturday. <a class="gtmContentClick" data-vars-link-text="Grapevine" data-vars-click-url="https://www.grapevinetexasusa.com/summertime-in-grapevine/events/july-fourth-fireworks/" data-vars-content-id="b1274146-6383-4420-91ce-2886192d133a" data-vars-headline="Plan your July Fourth weekend: Fireworks, music, pups" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.grapevinetexasusa.com/summertime-in-grapevine/events/july-fourth-fireworks/" target="_blank">Grapevine</a>, 9:30pm Saturday🐕 Cheer on your pup. Enter your dog in pet contests at <a class="gtmContentClick" data-vars-link-text="Paws and Stripes" data-vars-click-url="https://www.friscofreedomfest.org/160/Paws-Stripes" data-vars-content-id="b1274146-6383-4420-91ce-2886192d133a" data-vars-headline="Plan your July Fourth weekend: Fireworks, music, pups" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.friscofreedomfest.org/160/Paws-Stripes" target="_blank">Paws and Stripes</a> at Frisco Freedom Fest.<ul><li>Friday, 6-10pm at Kaleidoscope Park. <a class="gtmContentClick" data-vars-link-text="Entry" data-vars-click-url="https://www.squadup.com/events/paws--stripes-contests?legacy=0" data-vars-content-id="b1274146-6383-4420-91ce-2886192d133a" data-vars-headline="Plan your July Fourth weekend: Fireworks, music, pups" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.squadup.com/events/paws--stripes-contests?legacy=0" target="_blank">Entry</a> $12 per event.</li></ul>⚽️ Celebrate soccer. Head to the <a class="gtmContentClick" data-vars-link-text="FIFA Fan Festival" data-vars-click-url="https://www.fairparkdallas.com/events/detail/celebrate-independence-day-at-fair-park" data-vars-content-id="b1274146-6383-4420-91ce-2886192d133a" data-vars-headline="Plan your July Fourth weekend: Fireworks, music, pups" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.fairparkdallas.com/events/detail/celebrate-independence-day-at-fair-park" target="_blank">FIFA Fan Festival</a> at Fair Park to watch live soccer matches on the big screens.<ul><li>Watch fireworks Friday at the conclusion of the Colombia vs. Ghana match that begins at 8:30pm. Free with <a class="gtmContentClick" data-vars-link-text="advanced registration" data-vars-click-url="https://dallasfwcfanfestivaltickets.vivenushop.com/event/fan-festival-dallas-7wgit2" data-vars-content-id="b1274146-6383-4420-91ce-2886192d133a" data-vars-headline="Plan your July Fourth weekend: Fireworks, music, pups" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://dallasfwcfanfestivaltickets.vivenushop.com/event/fan-festival-dallas-7wgit2" target="_blank">advanced registration</a>.</li></ul>🏅 Tap along to patriotic tunes. Celebrate America&#x27;s 250th at <a class="gtmContentClick" data-vars-link-text="Freedom Fest" data-vars-click-url="https://mohmuseum.org/exhibits-and-events/events/freedom-fest-2026" data-vars-content-id="b1274146-6383-4420-91ce-2886192d133a" data-vars-headline="Plan your July Fourth weekend: Fireworks, music, pups" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://mohmuseum.org/exhibits-and-events/events/freedom-fest-2026" target="_blank">Freedom Fest</a> at the National Medal of Honor Museum in Arlington. <ul><li>Saturday and Sunday, culminating in a live performance by the 1st Cavalry Division Band on Sunday, 7:30-9pm, followed by a viewing party of Light Up Arlington fireworks show at 9:30pm. General admission tickets start at $30.</li></ul>

Things to Do

U.S. Rep. Jasmine Crockett (D-Dallas) leads state Rep. James Talarico (D-Austin) for the Democratic nomination for U.S. Senate, according to a small survey of 350 registered voters taken before Talarico's viral interview with late-night host Stephen Colbert. 

Why it matters: The Democratic race features two rising stars in the party with contrasting styles and messages. The winner will set the tone for the party in a Texas midterm election with nearly every statewide office on the ballot.

Zoom in: Crockett was the choice for 56% of Democrats surveyed while Talarico was favored by 44%, per the University of Texas/Texas Politics Project poll released Wednesday. That question had a margin of error of ±5.1 percentage points, meaning the gap between the candidates could be wider or narrower than indicated, but Crockett's lead at that time would hold. 

Crockett gained national attention for her sharp criticism of President Trump. Even though she entered the race just before the filing deadline in December, just 18% of respondents said they didn't have an opinion of her. 

By contrast, 34% said they didn't have an opinion about Talarico, who has used his Christian faith as a framework to criticize Republicans. 

How it works: The poll was conducted Feb. 2–16, before early voting began. 

Flashback: Talarico's Feb. 16 interview with Colbert never aired because Colbert said CBS warned him against it, citing a federal directive. 

But Colbert posted it on YouTube, where it's been seen 8.9 million times.

The big picture: The race is garnering national attention as a barometer of the backlash against Trump in a red state. So far, more ballots have been cast in the Democratic primary in Texas than in the Republican primary, a gauge of voter enthusiasm that could continue into November.

The other side: The poll suggests that Texas Attorney General Ken Paxton and U.S. Sen. John Cornyn might be headed for a runoff in the Republican primary. 

Paxton was favored by 36% of respondents, Cornyn by 34% and U.S. Rep. Wesley Hunt (R-Houston) by 26%. That question had a sample size of 350 and a margin of error of ±5.24 percentage points, meaning Cornyn and Paxton are statistically tied.

The intrigue: In a potentially positive sign for Democrats, 46% of respondents said they had an unfavorable opinion of the party, the lowest  among 21 Texas Politics Project polls taken over more than 10 years.

45% said they had an unfavorable opinion of the Republican Party. That figure has fluctuated between 58% and 41% over the past decade, even as the party has dominated state politics.

What's next: Early voting ends Friday. Election day is Tuesday.

National

Crockett leads Talarico in Democratic Senate primary, per new poll

On the Republican side, Paxton and Cornyn lead Hunt, but no candidate has enough support to avoid a runoff.

U.S. Rep. Jasmine Crockett holds a microphone while campaigning. Next to her is a different image of Texas Rep. James Talarico, also holding a microphone while at a campaign event

U.S. Rep. Jasmine Crockett and state Rep. James Talarico. Photos: Joel Angel Juarez and Alberto Silva Fernandez/Getty Images 

U.S. Rep. <a class="gtmContentClick" data-vars-link-text="Jasmine Crockett" data-vars-click-url="https://www.axios.com/2025/12/08/jasmine-crockett-texas-senate-2026-democratic-primary" data-vars-content-id="b7fff818-df4e-41be-a57b-c7677c64d750" data-vars-headline="Crockett leads Talarico in Democratic Senate primary, per new poll" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2025/12/08/jasmine-crockett-texas-senate-2026-democratic-primary" target="_self">Jasmine Crockett</a> (D-Dallas) leads state Rep. <a class="gtmContentClick" data-vars-link-text="James Talarico" data-vars-click-url="https://www.axios.com/local/dallas/2026/02/11/talarico-crockett-us-senate-texas-advertising" data-vars-content-id="b7fff818-df4e-41be-a57b-c7677c64d750" data-vars-headline="Crockett leads Talarico in Democratic Senate primary, per new poll" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/dallas/2026/02/11/talarico-crockett-us-senate-texas-advertising" target="_self">James Talarico</a> (D-Austin) for the Democratic nomination for U.S. Senate, according to a small survey of 350 registered voters taken before Talarico&#x27;s viral interview with late-night host <a class="gtmContentClick" data-vars-link-text="Stephen Colbert" data-vars-click-url="https://www.axios.com/2026/02/17/colbert-cbs-talarico-interview-fcc-trump-carr" data-vars-content-id="b7fff818-df4e-41be-a57b-c7677c64d750" data-vars-headline="Crockett leads Talarico in Democratic Senate primary, per new poll" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2026/02/17/colbert-cbs-talarico-interview-fcc-trump-carr" target="_self">Stephen Colbert</a>. Why it matters: The <a class="gtmContentClick" data-vars-link-text="Democratic race" data-vars-click-url="https://www.axios.com/2026/02/10/texas-senate-talarico-crockett-race-identity" data-vars-content-id="b7fff818-df4e-41be-a57b-c7677c64d750" data-vars-headline="Crockett leads Talarico in Democratic Senate primary, per new poll" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2026/02/10/texas-senate-talarico-crockett-race-identity" target="_self">Democratic race</a> features two rising stars in the party with contrasting styles and messages. The winner will set the tone for the party in a <a class="gtmContentClick" data-vars-link-text="Texas midterm election" data-vars-click-url="https://www.axios.com/local/dallas/2026/02/24/texas-democrat-primary-turnout-high" data-vars-content-id="b7fff818-df4e-41be-a57b-c7677c64d750" data-vars-headline="Crockett leads Talarico in Democratic Senate primary, per new poll" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/dallas/2026/02/24/texas-democrat-primary-turnout-high" target="_self">Texas midterm election</a> with nearly every statewide office on the ballot.

2024 will be an election year like no other, as President Biden seeks re-election amid economic uncertainty, two wars and questions about his age. His likely foe, former President Trump, faces felony charges and vows revenge on his political enemies. Meanwhile, Americans generally are dissatisfied with those choices and are divided over immigration, race, education and more.

Bob Gee

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