Texas continues to outperform the rest of the nation in job creation, according to the Real Estate Center's (Texas A&M University) latest Monthly Review of the Texas Economy.

The state gained 271,400 nonfarm jobs from August 2010 to August 2011, an annual growth rate of 2.6 percent, compared with 1 percent for the United States. Texas jobs created during that period accounted for 21.1 percent of nonfarm jobs created in the nation.

The state's private sector grew by 284,200 jobs (3.3 percent), compared with 1.6 percent for the U.S. private sector.

Texas' seasonally adjusted unemployment rate increased to 8.5 percent in August 2011 from 8.3 a year earlier. The nation's rate decreased from 9.5 percent to 9.1 percent.

All Texas industries except the information industry and the state's government sector had more jobs in August 2011 than in August 2010. The state's mining and logging industry ranked first in job creation followed by the construction, professional and business services, and leisure and hospitality industries.

The mining industry posted an annual employment growth rate of 17.4 percent from August 2010 to August 2011. The average number of active rotary rigs increased from 708 to 875.8 during the period, according to Hughes Tool co.

The state's construction industry ranked second in job creation, adding 31,500 during the period, a 5.5 percent increase. Jobs gained consisted of 7,100 in construction of buildings, 10,600 in heavy and civil engineering construction, and 13,800 in specialty trade contractors.

Also, the state's professional and business services industry gained 54,800 from August 2010 to August 2011, an annual growth rate of 4.3 percent. Jobs gained consisted of 45,400 jobs in the state's administrative and support services industry, 9,200 jobs in the professional, scientific and technical services industry, and 200 in the state's management of companies and enterprises industry.

The state leisure and hospitality industry (arts, entertainment, recreation, accommodations and food services), gained 36,100 jobs during the period, an annual growth rate of 3.5 percent.

The report showed that the state's government sector lost 12,800 jobs during the period, an annual decline rate of 0.7 percent. Job losses consisted of 800 in state government, 8,700 in the state's federal government, and 3,300 in the state's local government.

All Texas metro areas except Abilene and Texarkana had more jobs in August 2011 than a year earlier. Victoria ranked first in job creation, followed by Odessa, Lubbock, McAllen-Edinburg-Mission and Midland. The Wichita Falls employment growth rate was 0.3 percent.

The state's actual unemployment rate in August was 8.5 percent. Midland had the lowest at 4.8 percent, followed by Amarillo, 5.9 percent; Odessa, 6.5 percent; Lubbock, 6.6 percent; San Angelo, 6.8 percent; and College Station-Bryan, 6.9 percent. Wichita Falls had a 7.6 percent rate, followed by San Antonio-New Braunfels at 7.8 percent.

The report was written by research economist Dr. Ali Anari and chief economist Dr. Mark Dotzour. The complete report can be viewed online at www.recenter.tamu.edu.