Houston-area employers added just 100 new workers in August, according to figures released by Workforce Solutions – Gulf Coast. The anemic growth follows steep declines across multiple industries and comes as the region’s unemployment rate jumped half a percentage point.
Leisure, Professional, and Manufacturing Sectors Post Steep Declines
The leisure and hospitality sector saw the steepest cutbacks, shedding 2,600 jobs in August. The professional and business services sector also experienced sharp losses, down 2,400 jobs—the largest August decline on record—amid ongoing layoffs in the energy sector.
Manufacturing recorded its second-largest monthly drop ever, losing 2,100 jobs split evenly between durable and non-durable goods producers.
“While specific reasons vary by industry, new macroeconomic policies, continued high interest rates, and uncertainty all contributed to weakening economic conditions in the Gulf Coast region,” said Mohammad Ahmadizadeh, economist and principal data analyst at Workforce Solutions – Gulf Coast. He noted that while the Federal Reserve announced a quarter-point rate cut on Thursday, the move came after August’s job survey was conducted.
Government, Education, and Construction Provide Modest Offsets
Public-sector hiring was the biggest bright spot in August. Local government added 4,200 jobs, a number boosted by school districts reopening for the fall semester. Private education and health services contributed 2,800 jobs, mostly in healthcare roles. Construction also added 1,900 workers, helping to partially offset private-sector losses.
Unemployment Rises to 5%
The region’s not-seasonally adjusted unemployment rate increased to 5.0% in August, up from 4.5% in July. On a seasonally adjusted basis, unemployment for July ticked down one-tenth of a percent from June to 4.2%.
Looking Ahead
Additional labor market information, including the detailed August report, is available at www.wrksolutions.com/localstats. The Texas Workforce Commission will release September employment data on October 17, 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.
