The most recent data from the Texas Workforce Commission and the Bureau of Labor Statistics shows job losses within the Houston regional economy to be much worse than previously estimated. April’s job numbers were revised downward significantly and May’s employment statistics showed further losses. In comparison with May of 2008, employment in Houston is down 56,000 jobs. Even more startling is that since November of 2009, seasonally adjusted employment is down 62,100 jobs, that’s an average decline of more than 10,000 lost jobs per month, equaling the rate of job decline that occurred during the worst period of the energy bust in the 1980s. These losses now are comparable to the losses experienced by the national economy. No longer can we say that Houston is weathering the national and global storms better than most of the rest of the country.
The losses since November are across virtually all sectors. Upstream energy losses have mushroomed to 3.05%; downstream energy employment is down 2.56%; the energy independent base has experienced losses of 2.98%; and the region’s secondary sectors have contracted by 1.82%. With any type of national recovery still uncertain, there is no question that the economic environment in Houston will get worse before it stabilizes. Key to any type of stabilization in Houston will be some level of positive growth in the U.S. economy and a rebound in natural gas prices. This may be a year or more off. In the meantime, look for even more job losses regionally.
Read Previous Houston Updates
- Houston Update (May 22, 2009) -"Houston Update Houston’s economy deteriorating even faster than expected."
- Houston Update (March 13, 2009) - "Data Revisions Show That The Houston Slowdown Is Already Here!"
- Houston Update (November 29, 2008) - "Houston Slowdown Continues"
- Houston Update (June 18, 2008) - "Houston Stays On Top"
- Houston Update (July 16, 2008) - "Houston's Economy Slows"
- Houston Update (August 19, 2008) -
"Home Market Woes Worsen"
- Houston Update (September 9, 2008) - "
Is the Houston Slowdown for Real this Time?"
- Houston Update (September 22, 2008) - "Houston's Economy Slows Even Before Ike"
- Houston Update (November 18, 2008) - "Houston’s Economy To Slow Significantly"
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