Houston-area employers added just 2,300 new workers in June, according to figures released by Workforce Solutions – Gulf Coast. It’s the second month in a row that the number of jobs added has been “substantially below the long-term average.”
Government and Professional Sectors Lead Job Losses
Job losses in the Government and the Professional and Business Services sectors were the biggest drags on the month’s employment figures, shedding 4,800 and 3,600 workers respectively. The decline in government jobs was expected with the end of the academic year for public schools and universities.
“The Professional and Business Services sector, however, continues to be a point of weakness in the job market,” explained Parker Harvey, regional manager of economic analysis at Workforce Solutions – Gulf Coast. “Historically, the sector adds nearly as many jobs as it lost in June, 3,600, so last month’s outcome stands in contrast to the long-term average.”
Construction, Manufacturing, and Hospitality Sectors Report Gains
Construction and Manufacturing sectors helped offset losses, adding 2,700 and 2,500 jobs respectively. Construction hiring was distributed across specialty trade contractors (+1,200), heavy construction (+800), and construction of buildings (+700). May figures for construction were also revised upwards by 1,600 jobs, reversing that month’s previously reported losses and adding 700 jobs overall.
Leisure and Hospitality continued to be a safe haven for workers, adding 4,200 jobs in June. Restaurants and bars led hiring within the sector, bringing on 2,800 new workers. Entertainment venues (+1,000) and accommodations (+800) accounted for the remaining gains.
Unemployment Rate Increases Slightly
The region’s unemployment rate rose one-tenth of a percent to 4.3% on a not-seasonally adjusted basis. Following recent methodological changes, the U.S. Bureau of Labor Statistics reported a seasonally adjusted unemployment rate of 4.3% for the Houston-Pasadena-The Woodlands metro area in May.
Looking Ahead
Additional labor market information, including the detailed June report, is available online at www.wrksolutions.com/localstats. The Texas Workforce Commission will release July employment data on August 15, 2025.
About Workforce Solutions – Gulf Coast
Workforce Solutions – Gulf Coast is dedicated to keeping the Texas Gulf Coast region a great place to do business, work, and live. Through an employer-driven, people-focused approach, the organization works to elevate the region’s economic and human potential. As the public workforce system for 13 counties in the Houston-Galveston area, Workforce Solutions partners with the Texas Workforce Commission and the statewide Workforce Solutions network to operate Texas’ largest job-matching database: www.WorkInTexas.com.
