Houston-area employers added 16,800 jobs in May, exceeding the region’s historical average for the month and marking a stronger result after a slower start to the year.
The increase surpassed Houston’s long-term May average of 12,600 jobs and was substantially stronger than May 2025, when employers added 4,100 positions. Leisure and Hospitality led monthly growth with 5,400 jobs, followed by Construction with 4,000 and Other Services with 1,900. Trade, Transportation and Utilities, Professional and Business Services, and Manufacturing also posted gains during the month.
On a seasonally adjusted basis, Houston added 5,000 jobs in May, slightly above the historical average for the month.
“Houston’s labor market showed encouraging signs of stabilization in May,” said Workforce Solutions Gulf Coast Economist Mohammad Ahmadizadeh. “Monthly job growth exceeded typical seasonal expectations, and employment gains were fairly well-distributed across industries. Challenges remain in several sectors, but the region continues to benefit from strength in construction, healthcare, and professional services.”
Several of May’s strongest gains came from sectors benefiting from seasonal activity and major events. Leisure and Hospitality hiring exceeded historical norms as employers added staff ahead of summer travel and Houston’s role as a host city for the 2026 FIFA World Cup. Construction also continued to outperform historical averages, supported by industrial development, infrastructure investment, and major projects across the region.
Over the year, Houston added 21,300 jobs, an increase of 0.6 percent. That represents an improvement from recent months, though annual growth remains well below the pace recorded a year ago, when the region added more than 44,000 jobs. Seven of Houston’s eleven major industry sectors now show year-over-year growth, indicating that gains have broadened somewhat compared with earlier in 2026.
Construction remained the region’s strongest source of annual job growth, adding 12,100 jobs over the year. Professional and Business Services added 7,000 jobs, while Private Education and Health Services added 6,500. Financial Activities, Mining and Logging, Manufacturing, and Information remained below year-ago employment levels.
Houston’s unemployment rate rose to 4.6 percent in May from 4.3 percent in April and remained above both the Texas rate of 4.3 percent and the national rate of 4.1 percent. The increase follows a historical seasonal pattern that has appeared in Houston’s May data for the past three decades.
The Houston Area Workforce Solutions Index rose for the fourth consecutive month, increasing from 3.33 in April to 3.46 in May. The index remains below its 4.0 equilibrium level, indicating that jobseekers still outnumber available opportunities, though the recent movement suggests improving hiring demand.
The May numbers point to a better month for Houston’s labor market, without resolving the broader unevenness in growth across industries.
Read the full May Houston-area jobs report for a detailed breakdown of industry employment, labor market trends, and the latest economic data shaping the region’s workforce.
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