Hiring in Texas and the South Central states
Texas, Oklahoma and Louisiana: energy, LNG, semiconductors, fast population growth, talent, wages and employment rules.
The regional economy
Texas, Oklahoma and Louisiana produce more than a tenth of U.S. GDP. The economy rests on oil, gas, LNG and petrochemicals along the Gulf Coast, with fast growth in semiconductors and software (Austin), finance and headquarters (Dallas-Fort Worth), aerospace and health care.
The region also includes Arkansas, home to Walmart’s headquarters and a large logistics, food and retail supply sector; the figures and rules below focus on Texas, Oklahoma and Louisiana.
European companies employed about 501,000 people here in 2023, drawn by energy demand, population growth, low taxes and lighter employment regulation.
Main industries and clusters
Oil and gas
Texas produces more than 40% of U.S. crude oil and about a third of U.S. refining capacity.
LNG and petrochemicals
The Gulf Coast terminals made the U.S. the world’s largest LNG exporter; Louisiana’s exports to Europe are mostly energy products.
Semiconductors and technology
Major fab investments around Austin and Taylor; Austin pays the region’s highest tech and engineering wages.
Health care and life sciences
Houston’s Texas Medical Center is the largest medical complex in the world, with more than 120,000 employees.
Aerospace and defense
Houston, Fort Worth and Oklahoma City host aerospace, space and military-maintenance activity.
Energy equipment manufacturing
Italian-linked groups are present, such as Tenaris with its seamless-pipe mill near Houston.
Talent, wages and competition
- A large, growing labor market: Texas has a labor force of about 16 million and led the U.S. in job growth over the past year.
- Engineers in Houston earn above the national average, while construction trades cost about 13% less.
- Austin has the highest tech wages in the region; Dallas-Fort Worth is close to the national level; Houston is about 3% below it overall.
- Low union membership (about 5% in Texas and Louisiana).
- Most contested profiles: process and chemical engineers, LNG and plant operators, Gulf Coast craft trades and semiconductor technicians.
What differs from state to state
Texas
- Minimum wage is the federal $7.25; no state pay-transparency or paid-sick-leave law.
- No personal or corporate income tax; a franchise (margin) tax applies.
- Workers’ compensation is optional for private employers, but opting out brings notice duties and greater exposure to injury lawsuits.
- Non-competes enforceable if reasonable and tied to an otherwise enforceable agreement.
Oklahoma and Louisiana
- Oklahoma: employee non-competes are void (non-solicits allowed); top income tax rate 4.5% in 2026.
- Louisiana: non-competes allowed for up to two years and must list the parishes covered; corporate tax 5.5%.
- Both apply the federal $7.25 minimum wage in practice.
Summary for orientation only, current as of October 2026; not legal advice. See also our guide to rules by state.
Italian and European companies in the region
The UK, France and Germany are the largest European employers in Texas, where jobs at European-owned companies grew 35% between 2012 and 2023. The Italy-America Chamber of Commerce of Texas, founded in Houston in 1992, covers Texas, Louisiana, Oklahoma and Arkansas; Italy also has a Consulate General and an Italian Trade Agency office in Houston.
Cost of doing business
- Price levels (U.S. = 100): Houston 98.6, Austin 98.1, Dallas-Fort Worth 103.1, Oklahoma City 90.4 (BEA, 2024).
- Lower payroll costs: no state income tax in Texas, no state paid-leave premium and optional workers’ compensation.
- Overall wages in Houston are about 3% below the national average.
Questions employers ask
Do we need to publish salary ranges or offer paid sick leave in Texas?
No state law requires either in Texas, Oklahoma or Louisiana. Employers recruiting remotely may still be covered by other states’ posting rules.
Is workers’ compensation insurance mandatory?
Not in Texas for private employers, but non-subscribers must notify employees and the state and accept greater litigation exposure, so most employers keep coverage.
Which city suits which function?
Houston for energy, LNG, petrochemicals and engineering; Austin for semiconductors and software; Dallas-Fort Worth for headquarters, finance and logistics; Oklahoma City, Tulsa and Baton Rouge for lower-cost energy and industrial operations.
Explore the U.S. regions
Data sources
BLS state unemployment · BEA state GDP (FRED) · Census QuickFacts Texas · BLS OEWS Houston, May 2025 · EIA Texas profile · Transatlantic Economy 2026 (AmCham EU) · Texas DWC non-subscribers · Italy-America Chamber of Commerce of Texas
Figures are the latest available as of October 2026 (state unemployment: August 2026, preliminary; GDP: 2025; wages: BLS OEWS May 2025; foreign-affiliate jobs: BEA 2023). Regional totals are sums of state figures.
Hiring in Texas and the South?
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