Texas Has the Largest Skilled Worker Shortage in the U.S.
A December 2025 report on workforce shortages has identified Texas as the state facing the most severe shortage of skilled workers in the US. The study, conducted by Affordable Contractors Insurance, analysed labour market conditions across all 50 states to determine where employers struggle most to hire qualified talent.
Texas topped the list, with nearly 310,000 residents lacking the basic digital skills required for today’s workplace. This skills gap has made it increasingly difficult for businesses to fill roles that demand even foundational technical competencies.
California, despite having a large workforce, faces a different challenge. The state has more than 640,000 unfilled jobs, with 73 per cent of these positions requiring skills that the local talent pool does not possess, highlighting a significant mismatch between job requirements and available expertise.
Massachusetts emerged as the slowest state for hiring, recording the worst score of 1.69 on the time-to-employment index. This indicates that employers there take longer than almost anywhere else in the country to fill vacant roles.
The research evaluated several factors, including digital skills gaps, job vacancy levels, skills mismatches, education attainment, occupational licensing restrictions, and average hiring timelines. Based on these indicators, each state was assigned a Skilled Worker Shortage Score ranging from 1 to 99, with higher scores signalling greater difficulty in securing 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.
- Texas
- People lacking digital skills: 309,818
- Job openings: 583,209
- Job openings requiring unmet skills: 76%
- Population with bachelor's degree: 33.1%
- 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.
- 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.
- 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.
- 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.
- 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."
