Where are the jobs? Houston and Texas unemployment at 8.3%

State legislature funds jobs program

In its January report the Texas Workforce Commission (TWC) stated that the Texas unemployment rate had risen to 8.3% in December of 2009. Texas Workforce Commission chairman Tom Pauken said “Texas continues to feel the effects of this serious national recession with unemployment in our state now at 8.3 percent.” Although Texas lost 23,900 jobs in December, it continues to remain well below the national average of 9.7%.

According to the TWC, "Trade, Transportation and Utilities represented the bulk of December’s job losses at 7,400 jobs. Leisure and Hospitality employment was down 6,500 jobs in December, and Professional and Business Services recorded a loss of 5,300 jobs." The Health and Education services sector has continued to add jobs, however, increasing positions totaling 60,400 over the past 12 months. Mining and logging employment, which includes oil and gas, had modest job gains in December.

To help reduce the unemployment rate in the state, the TWC is initiating the "Texas Back to Work" program funded by the legislature last year. It offers employers incentives such as subsidized-wage reimbursements or retention bonuses for hiring qualified unemployed. Lt. Gov. Dewhurst who is launching the program this month said, "Job creation in Texas is among my highest priorities, and Texas Back to Work will benefit Texas employers and workers by providing businesses with funds to help them expand and offering new opportunities to unemployed Texans.”

So how have Houston jobs fared during this recession? The TWC says the unemployment rate for the Houston-Sugar Land-Baytown metropolitan area is the same as the State, 8.3%. The ten county area has had a loss of 92,500 jobs in the past year, according to TWC preliminary estimates.

Most of Houston's top industry categories experienced job losses in the past year (December '08 - December '09):

1) The Trade, Transportation, and Utilities sector had a net job loss of 6.4%. Most of this was due to the downturn in international trade, which has been an economic boon to the region and a major job producer. As many as 26,800 jobs were lost in businesses related to importing and exporting.

2) Government jobs increased 1.4% in the Houston area. This includes jobs in public education as well as those at the state, local and federal levels.

3) Business and professional services had a net loss of 4.7% in jobs from a year ago.

4) Education and health services had an increase of 2.3% since 2008. This category includes jobs in health care, social assistance, and educational services.

5) The Leisure and Hospitality industry remained steady with a small gain of .7%.

6} Manufacturing jobs dipped with losses of 7.8%

7) Oil and gas and financial activities had job losses of 2.3% and 1.5% respectively.

8) Construction lost over 25,000 jobs in the period from Dec. '08 to Dec. '09, a loss of 12.5%.

Despite the job losses Houston has fared better than many other major cities in the country. The Bureau of Labor Statistics shows over two hundred metropolitan areas that have a higher unemployment rate than Houston, ranging from 8.4% to 27.7%.

Forecasts for job growth in Houston this year are somewhat optimistic. In its February report, the Greater Houston Partnership sees local job growth returning in the third quarter of the year, depending upon economic recovery elsewhere in the nation and abroad.

International commerce is predicted to trend upward, with expectations that Asian markets will have an upturn in their economies. This will add jobs in Houston's trade and transportation industries. Sectors likely to gain in jobs are health care, food services, administration and support services, and public education. Construction job loss is expected to continue the rest of the year.

Where are the jobs in Houston? The best way to find out is to look at the job postings on job hunting websites. Monster.com listed Houston's five top occupational sectors posting jobs on its site in 2009. The sectors were office and administrative support, management, computer and mathematical, business and financial, and sales.

The preliminary report issued by the TWC on the unemployment data will be followed by a revised report for the preceding 12 months. A "benchmark" revision along with estimates for January '10 will be published on March 4. It could differ somewhat from the preliminary estimates.

Information on unemployment data can be found on the Texas Workforce Commission website at www.twc.state.tx.us.

(The Banner, February 11, 2010)