Monthly Update: Houston Metro Employment
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Metro Houston created 12,100 jobs in October, according to data released today by the Texas Workforce Commission (TWC). Except for ’11 and ’16, this was the smallest October gain of the past 15 years. The labor market’s weak performance aligns with other data (i.e., Houston Purchasing Managers Index, city sales tax collections, available inventory of resale homes, and office leasing) that indicate Houston’s economy has slowed considerably from the fast pace of recent years.
Five sectors led employment gains in October. Local education created 4,900 jobs as school districts continued to staff up for the academic year. Professional scientific and technical services added 3,900 jobs, the gains spread evenly among accounting, engineering, law, and computer services. The retail sector added 3,300 jobs as merchants prepared for the holiday shopping season. Wholesale trade added 1,300 jobs, presumably in support of retail. And the construction sector added 900 jobs as awards for commercial and residential projects have soared this year.
Only two sectors saw significant job losses. Administrative support services, which includes contract workers, temporary help, outsourcing, and job placement, shed 4,200 jobs in October. The loss is not surprising given Houston’s overall slower growth. Health care and social assistance shed 1,100, which is more likely a correction from overstating gains earlier in the year, not a drop in demand for health care services.
In spite of tepid growth, employment in Houston reached an all-time high in October. The region now has 3,474,000 payroll jobs, a net gain of over 60,000 from this time last year. Houston typically sees gains of 20,000 to 25,000 in the last two months of the year, so the region may hit the 3.5 million mark in December. If not, Houston will reach that milestone early next year.
Prepared by Greater Houston Partnership Research
Patrick Jankowski, CERP
Chief Economist
Senior Vice President, Research
pjankowski@xyschool.net
Leta Wauson
Research Director
lwauson@xyschool.net
