Lufkin’s Job Market Struggles Amid Statewide Growth

While Texas continues to add jobs in 2025, Lufkin is feeling the weight of an economic slowdown. Despite the Texas Employment Forecast predicting a 1.6% job increase statewide, Lufkin’s local economy tells a different story one of shrinking opportunities and rising unemployment.  

By November 2024, Lufkin’s unemployment rate climbed to 4.8%, up from 4.7% the previous month and a notable jump from 3.7% the year before. This upward trend signals that while larger cities thrive, smaller communities like Lufkin are struggling to keep up.  

So, what’s behind the decline?  

Manufacturing & Energy Downturns: Lufkin has long depended on these industries, but shifts in global markets and automation have put local jobs at risk.  

Small Business Struggles: Across Texas, small and mid-sized businesses are having a hard time hiring. In Lufkin, this challenge is even greater, leading to fewer job openings and tougher competition.  

Urban Migration:  Bigger cities promise better wages and more opportunities, pulling talent away from towns like Lufkin and shrinking the local workforce.  

For Lufkin residents, this means fewer job prospects and tougher times ahead. The path forward may require investment in new industries, workforce retraining programs, and incentives to bring businesses back to the area. Without change, Lufkin risks falling further behind in Texas’ otherwise booming economy.