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Businesses leaving California for Texas, report says

From 2010 to 2019, more than 25,000 businesses and 281,000 jobs came to Texas, compared to the around 18,000 businesses and 179,000 jobs that left the state.
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TEXAS, USA — A new report from the Federal Reserve Bank of Dallas says Texas is the premiere relocation state for out-of-state jobs.

From 2010 to 2019, more than 25,000 businesses and 281,000 jobs came to Texas, compared to the around 18,000 businesses and 179,000 jobs that left the state.

While Florida outpaced Texas in the net number of businesses being added to each state, Texas was ranked No. 1 for the net job gains from those business relocations from 2010 to 2019, according to the report. 

Where are those jobs coming from? 

The report said California was the state businesses were departing from the most.

More than 44,400 jobs came to Texas from California between the years of 2010 and 2019, accounting for around 16% of all jobs that came from out of state. There were some businesses going against that trend. More than 14,700 jobs left Texas for California in that timeframe, according to the report.

Some of the other top locations Texas took jobs from include Oklahoma, New Jersey and Louisiana. The report cited difference in economic conditions and business climates as reasons for the job migrations, along with proximity to the state.

Where in Texas are the jobs going?

As for where in Texas businesses are moving, the top two destinations are Dallas followed by Houston. These two cities accounted for around 60% of jobs moving from other states. Fort Worth, Austin and San Antonio were the next three top destinations, in order.   

What kind of jobs are coming to Texas?

The report broke down the type of jobs coming to the state into various supersectors.

At the top of that list was professional and business services, accounting for more than 12,600 businesses and 83,800 jobs coming into the state while more than 9,100 businesses and 52,300 jobs left in that sector.

The second supersector on the list, manufacturing, accounted for more than 1,600 businesses and 49,758 jobs coming into the state while more than 1,000 businesses and 30,300 jobs left the state.

Some of the other top industries include trade, transportation and utilities, leisure and hospitality, and construction.

The industry that saw the least movement was agriculture, where 389 businesses and 1,197 jobs came to Texas while 261 businesses and 615 jobs left the state.

How big are the businesses coming to Texas?

According to the report, around 90% of all businesses that came to Texas from out of state were small businesses from 2010 to 2019, but only accounted for around half of the jobs that came to the state. Around 80% of the businesses had fewer than 5 employees.

Businesses with fewer than 500 employees accounted for around 75% of jobs that came to the state while businesses with 1,000 or more employees accounted for around 15% of the jobs.

Why are businesses moving to Texas?

The report said Texas offers a range of incentives for businesses moving to the state, including the Texas Enterprise Fund, which gives cash grants to large companies that choose Texas over other states.

Since the fund was established, it has taken part in 201 projects from 2004 to 2022 for $830 million, according to the report. One of the high-profile companies enticed by the Texas Enterprise Fund includes Samsung, which was awarded $27 million for a semiconductor plant near Austin.

The report also cited Texas' tax incentives as a reason that businesses may want to move to the state.

For more details, click here to read the full report.

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