According to Texas Workforce Commission data, Texas’ employment rate grew faster than the rest of the country last year.
Bryan Daniel, the organization’s chairman, attributed the growth to the quality of life in the Lone Star State’s large cities. However, rural areas have yet to catch up to the growth seen in these cities.
“Austin, San Antonio, of course, Dallas and Houston, Fort Worth and all of the surrounding suburbs, all those communities have a high quality of life, good schools,” he said. “There’s a lot of things going on here that attract the workforce.”
Texas Workforce Commission also says Texas has a “diverse economy” that is growing, which welcomes new businesses and population growth. The statewide growth had almost reached pre-pandemic levels (2019)
What’s up with Houston’s job market?
Every year, the Greater Houston Partnership predicts Houston’s job growth.
According to their forecast, the region will see growth but at a slower pace, owing to the impact of high interest rates, a tight labor market, and a chaotic commercial real estate space on the economy.
Houston was still projected to add 57,600 jobs this year and return to a more sustainable pace since its record job growth post-pandemic. The city added around 200,000 more jobs in October 2023 than it did before the COVID-19 pandemic.
“The Houston region has been running at a sprint ever since emerging from the pandemic. So, while growth will slow down next year, Houston’s economy remains resilient,” Patrick Jankowski, the chief economist of Partnership, had said. He also added that the U.S. will not have a recession.
Zooming in on Houston’s recent employment stats
Metro Houston created 1,100 jobs in March, according to the Partnership’s analysis of data recently released by the Texas Workforce Commission.
The region has faced weak job growth thrice in the last three decades in the month, among which were the two recession years, March 2009 and March 2020.
Houston saw job gains in these sectors:
- Oil and gas (+1,600)
- Construction (+1,600)
- Private education (1,100)
- Local government (1,000)
- Arts, entertainment, and recreation (+800)
- Wholesale trade (+600)
- Public education (+600)
- Administrative support services (+500)
These gains help compensate for job losses in these sectors, according to the report:
- Professional, scientific, and technical services (-2,200)
- Transportation, warehousing, and utilities (-2,000)
- Manufacturing (-1,100)
- Real estate and equipment leasing (-700)
- Retail (-600)
- Information (-400)
- Other services (-300)
Employment in health care, restaurants, and bars remained unchanged.
The Houston metro area created 67,800 jobs over the last year, ending March 2024. Total nonfarm payroll employment now tops 3,418,700.
On the national level, the U.S. economy added 175,000 jobs in April, far less than its gains in March, below the average monthly gain of 240,000 economists had expected. Moreover, nonfarm payroll employment for March was revised from 303,000 to 315,000, according to the Bureau of Labor Statistics data.
“Houstonians can expect the following in ’24: Job growth below the current pace. More vehicles on the freeways. Record passenger volumes at the region’s airports. Fewer housing starts. Energy prices high enough to spur an uptick in drilling. Minor reductions in inflation. No relief on interest rates until mid-year. And a slump in commercial construction,” predicts Partnership’s Houston Region Economic Outlook further.
The city is expected to finish the year with total employment surpassing 3.4 million, which is a new record for the region.
Impact on Black professionals
For Black professionals who are looking for work opportunities in cities, it is important to consider the wider discussion of a vibrant cultural scene, affordable cost of living, and diversity.
During Black History Month, Black employees of Apartment List ranked Houston as the fourth-best U.S. city for Black professionals. They took into account four categories: community and representation, economic opportunity, housing opportunity, and business environment.
Out of 100, Houston scored 63.01, the second-highest score among cities in Texas after San Antonio.
“…the community is well-represented in some critical occupations: 20 percent of teachers are Black, as are 21 percent of doctors,” the report said. “Houston is also home to the HBCU Texas Southern University, helping a job market when the median Black income is several thousand dollars above average.”
The city also has the highest rate of Black-owned businesses in Texas (18%).
“From the Mitochondria Gallery to Ten Skyncare and Wisdom’s Vegan Bakery, Houston has it all!” the report added.
