Houston Job Market Slows Pace After Explosive Growth, Sectors Like Healthcare and Construction Remain Strong

The job market in Houston has demonstrated robust growth, although at a slightly slower pace following three years of explosive expansion. As of 2024, Houston created 57,800 jobs, bringing the total payroll employment to a record 3.5 million. This growth was driven by sectors such as construction, health care, wholesale trade, professional and business services, and restaurants and bars, which benefited from a strong U.S. economy, expanding global trade, and local population growth.

In April 2025, employers in the Houston area added 14,400 jobs, with total employment standing at 3,474,200. The job growth for the three months ending in February 2025 was 2.1%, adding 18,035 jobs, which is above the long-run trend growth. However, recent revisions indicate that the metro area added fewer jobs in 2024 than initially estimated.

The unemployment rate in Houston remained flat at 4.2% from January to February 2025. Average hourly earnings were $36.30, with a year-over-year growth of 5.1%. Despite this, input prices showed a sharp uptick in February 2025, suggesting a slower economic pace in the coming months.

Major industries contributing to the job market include health care, construction, and professional services. Retail and administrative support were the only sectors that lost jobs, due to retail bankruptcies and a shift towards gig work.

Recent developments indicate that the economy is expected to return to a more sustainable pace of growth, with a forecast of adding 71,800 jobs over the next 12 months. Seasonal patterns show moderate job growth, particularly in sectors like construction and restaurants, which tend to hire more during peak economic periods.

Commuting trends and government initiatives are less documented in recent reports, but it is clear that corporate relocations and consumer confidence above national levels have significantly impacted the local job market.

Key findings include the robust but slowing job growth, strong performance in key sectors, and a stable unemployment rate. The market evolution suggests a return to sustainable growth rates after a period of rapid expansion.

Current job openings include positions in health care, such as registered nurses and medical assistants; construction roles like project managers and engineers; and professional services jobs such as data analysts and marketing specialists.

Episode Transcript

Speaker 1 (00:00):
This is your Houston Job Market Report Daily podcast, and
here is what we know for today. The job market
in Houston has demonstrated robust growth, although at a slightly
slower pace, following three years of explosive expansion. As of
twenty twenty four, Houston created fifty seven thousand, eight hundred jobs,
bringing the total payroll employment to a record three point

(00:21):
five million. This growth was driven by sectors such as construction, healthcare,
wholesale trade, professional and business services, and restaurants and bars,
which benefited from a strong US economy, expanding global trade,
and local population growth. In April twenty twenty five, employers
in the Houston area added fourteen thousand, four hundred jobs,

(00:43):
with total employment standing at three thousand, four hundred seventy
four thousand, two hundred. The job growth for the three
months ending in February twenty twenty five was two point
one percent, adding eighteen thousand, thirty five jobs, which is
above the long run trend growth. However, recent revisions indicate
that the Metro tro area added fewer jobs in twenty
twenty four than initially estimated. The unemployment rate in Houston

(01:05):
remained flat at four point two percent from January to
February twenty twenty five, average hourly earnings were thirty six
dollars and thirty cents, with a year over year growth
of five point one percent. Despite this input, prices showed
a sharp uptick in February twenty twenty five, suggesting a
slower economic pace in the coming months. Major industries contributing

(01:26):
to the job market include healthcare, construction, and professional services.
Retail and administrative support were the only sectors that lost
jobs due to retail bankruptcies and a shift towards gigwork.
Recent developments indicate that the economy is expected to return
to a more sustainable pace of growth, with a forecast

(01:47):
of adding seventy one thousand, eight hundred jobs over the
next twelve months. Seasonal patterns show moderate job growth, particularly
in sectors like construction and restaurants, which tend to hire
more during peak economic bad periods. Commuting trends and government
initiatives are less documented in recent reports, but it is
clear that corporate relocations and consumer confidence above national levels

(02:11):
have significantly impacted the local job market. Key findings include
the robust but slowing job growth, strong performance in key sectors,
and a stable unemployment rate. The market evolution suggests a
return to sustainable growth rates after a period of rapid expansion.
Current job openings include positions in healthcare such as registered

(02:34):
nurses and medical assistants, construction roles like project managers and engineers,
and professional services jobs such as data analysts and marketing specialists.
And that is it for today. Hit the subscribe button.
This has been a quiet please production with the help
of AI. Thanks for listening.