Before we start on Houston economic overview, according to Harvard University’s Opportunity Insights Tracker, the top quartiles’ wage rates reduced by 1.3 percent, those in the middle age quartile reduced by 5.0 percent. In comparison, the ones with low wages recorded an 11.1 percent decrease in their salaries.
Unemployment Claims
The US job growth is finally taking a predictable turn. 661,000 jobs spread out in different sectors in September. The claims for Unemployment Insurance were about 857,250 in September. This is lesser than those filed in August. The number of long-term unemployed workers raised by 781,000, which is quite alarming to the economy’s employment capacity.
Employment in Major Houston Sectors
A case study of one of the largest cities in the USA, Houston is well known for its great businesses. Major sectors such as energy, shipping, and aerospace have been dramatically affected. While conducting our Houston economic overview, we’d like to quote Texas Workforce Commission. It reported Houston introducing about 5,300 jobs in August. Houston’s economy is recording an average recovery with predictions that it is likely to add about 10,000 to 15,000 jobs over the near term.
There is a trend at which the employment rates are changing from one sector to another. Some Houston sectors are recording very high employment rates while others are still slowing down on employment. The average increase in jobs in Houston is at 32.5 percent. The finance and insurance employment rate has taken the lead and exceeded the pre-pandemic employment rate by 100 percent. The recovery compares employment loss experienced in March to April of last year during the pandemic’s peak.
Employment Trends in Other Sectors
Some of the sectors increased their employment bracket in a small margin. They include administrative and support systems, retail trade, restaurants, and bars. The others are healthcare and social assistance, art and entertainment, real estate, rentals and leasing, construction, educational services, transportation, and warehousing. On the contrary, we have other sectors that are still losing, including the government, manufacturing, and mining sectors.
The growing employment bracket can be attributed to different factors stated in our Houston economic overview. The high rise of employment in the finance and insurance sectors is due to increased engagement in commercial real estate, growing homes, the surge in mortgage refinancing, and overwhelming banks with Payroll Protection Plans.
In the administrative and support sector of Houston, the demand for cleaning workplaces and continuous sanitization created more opportunities. The reopening of offices raised the need for temporary employment, thus creating job opportunities. The executive order by the Governor of Texas, Greg Abbott last year, allowed malls, stores, and shops to reopen aided in the rise of sales and employment in the retail sector. The reopening of restaurants and bars at 50 percent capacity supported the hospitality sector to recover the losses incurred early between March and May of 2020. Nevertheless, accommodations have lower employment rates due to a lack of business travel and short leisure travel.
Because of their flexible nature, sectors that provide professional, scientific, and technical services were least affected by the pandemic. These areas include IT consulting, law, marketing, engineering, and public relations. Other sectors recovering include the personal care industry, repair services, and religious organizations.
Employment Curves in Commercial Real Estate and Construction
There has been a slight increase in all sectors of commercial real estate in Houston. Leasing and renting have been on the flat curve, but there has been a high employment interruption rate. The construction industry has recorded a flat engagement but has since picked up as the economy opened.
Some sectors that need more time for recovery in Houston include the exploration and mining sector, government sector, construction, transport and warehousing, and the educational services sectors.
