Texas Has the Largest Skilled Worker Shortage in the U.S., Study Shows

According to a December 2025 report on workforce shortages across the US, Texas faces the biggest deficit of skilled workers in the country. The study by Affordable Contractors Insurance examined the labor market in all 50 states to reveal where companies struggle most to fill positions.

• Texas faces the worst skilled worker shortage in America, with nearly 310K residents lacking basic digital skills needed for modern work.

• Companies in California have over 640K vacant positions, but 73% of these openings demand skills the local workforce cannot offer.

• Filling jobs takes longer in Massachusetts than in almost any other region, with the state showing the worst 1.69 score on the time-to-employment index. 

The research tracked key labor market factors, including the number of people lacking basic digital skills, the number of unfilled jobs, and the percentage of openings that require abilities workers don't have. It also looked at how strict licensing rules are for changing jobs, education levels, and the times required for filling positions. Each state received a Skilled Worker Shortage Score from 1 to 99, where higher numbers reflect greater difficulty in finding qualified employees.

Here's a look at the top 10 states facing the biggest skilled worker shortages:

State	Number of People Lacking Foundational Digital Skills	Number of Estimated Job Openings	% of Job Openings Requiring Unmet Skills	State Occupational Licensing Index	% of Population with Bachelors or Higher Degree	Time-to-Employment Index	Final Score
Texas	309,818	583,209	76.0	4	33.1	6.72	99
California	502,487	642,170	73.1	1	36.5	3.52	97
New York	224,985	359,136	77.3	4	39.6	2.99	93
Massachusetts	66,448	185,385	79.8	5	46.6	1.69	83
Colorado	65,918	136,119	77.2	4	44.7	3.53	79
Pennsylvania	133,409	318,264	76.0	3	34.5	3.08	77
Ohio	116,912	250,536	76.3	2	30.9	2.47	75
Connecticut	40,980	76,485	78.0	4	41.9	4.18	72
Minnesota	44,075	110,300	77.6	2	38.8	2.55	71
Arizona	87,619	145,885	75.3	4	32.6	2.97	65

You can access the complete research findings here.

1.  Texas

2. People lacking digital skills: 309,818

3. Job openings: 583,209

4. Job openings requiring unmet skills: 76%

5. Population with bachelor's degree: 33.1%

6. Time-to-employment index: 6.72

Texas faces the country's most severe skilled worker shortage. More than half a million jobs remain vacant here, while around 76% of residents lack the skills to fill these positions. The state's strict occupational licensing rules make things harder, scoring 4 out of 5 for regulatory barriers that stop workers from freely moving into new careers. The result is a 6.72 time-to-employment index, one of the worst in the country, meaning finding employees in Texas takes longer than elsewhere.

2.  California

   
   

California has the second-worst workforce deficit in America. Right now, there are more than 640K open jobs across the state, but 73% of them are asking for skills that the locals don’t possess. More than half a million Californians also report missing digital skills that modern-day work requires. So, despite having 36.5% of residents with bachelor's degrees, it seems the state's economy needs far more qualified workers than it can produce.

3.  New York

   
   

Next comes New York with close to 360K unfilled positions across local companies. The state sees 77% of its job openings require skills that locals don’t develop, meaning employers have to reject three out of every four applicants. About 225K residents here also lack the digital abilities to sit at desks and do work on laptops or personal computers. Like in Texas, the hard licensing requirements (4 out of 5 for restrictiveness) create further barriers for employees to change careers. 

4.  Massachusetts

   
   

Massachusetts has the worst skills gap rate in the country at nearly 80%. This means out of 185K current open positions, most employers won’t find applicants who can actually do the work. Part of the problem is that around 66K residents don't know how to use digital devices. On top of that, the state enforces America's toughest licensing requirements, scoring 5 out of 5, which stops workers from moving into fields where they could learn on the job.

5.  Colorado

   
   

Colorado takes fifth place, facing worker shortages even though 44.7% of residents hold bachelor's degrees. There are more than 130K vacant positions in the state currently, but 77% of them list requirements that the local workforce doesn’t meet. As a result, Colorado scores 3.53 points on the time-to-employment index, meaning companies here may have to wait for months to fill openings. 

Sean O'Keefe, CEO & Founder of Affordable Contractors Insurance, commented on the study: 

"The biggest problem is how many people lack basic digital skills. Most of these are likely older workers who relied on manual labor throughout their careers. But automation keeps taking away those hands-on jobs that used to be available. In a few years, this will become a much bigger issue. These workers won't just struggle to find employment; there simply won't be jobs left that don't require using computers or software."