Houston’s labor market has picked up pace in recent months, with employers adding 14,400 jobs in June and approximately 24,000 jobs during the first half of 2026. Now, a 2026 employment forecast offers a look at what could come next.
According to Workforce Solutions’ Employer Forecast, Houston’s metropolitan area is projected to add approximately 29,900 nonfarm jobs between December 2025 and December 2026.
Growth Is Expected Across More Industries
In 2025, Houston’s employment growth was concentrated largely in Construction and Professional and Business Services. The 2026 forecast calls for contributions from a wider range of industries.
Health Care and Social Assistance is projected to lead the year with approximately 8,900 additional jobs, followed by Professional and Business Services with 8,500 and Construction with 5,600. Leisure and Hospitality, Government, and Transportation, Warehousing, and Utilities are also projected to add jobs.
That broader mix is one of the main differences between the 2025 results and the current 2026 outlook.
Health Care Remains a Major Source of Growth
Health Care and Social Assistance is projected to be Houston’s largest source of job growth for 2026. The sector had already gained 7,600 jobs over the year through May, with Hospitals and Ambulatory Health Care Services accounting for much of the increase. The forecast expects the sector to continue growing through the end of the year.
Professional and Business Services is also expected to play a larger role. The sector was down slightly at the end of 2025, but employment recovered during the first half of 2026. Through May, it was up 7,000 jobs over the year. Additionally, the industry added 7,800 jobs in June, its largest June increase since records began in 1990.
Construction Continues to Add Jobs
Construction was Houston’s strongest-growing major sector in 2025, adding 13,600 jobs during the year.
Through May 2026, construction employment was up 12,100 jobs over the year. The forecast, however, expects the pace to slow during the second half of the year and projects a December-to-December gain of 5,600 jobs.
That projected slowdown has not appeared in the data available through May, making construction one of the areas to watch as the year continues.
The Forecast Is Not Uniform Across the Economy
The forecast expects declines in Financial Activities, Mining and Logging, Non-durable Goods Manufacturing, information, and Retail Trade. Financial Activities has the largest projected decline at 2,900 jobs, while Mining and Logging and Non-durable Goods Manufacturing are each projected to decline by 1,900 jobs.
Several factors are behind those projections, including interest rates, energy-sector activity and changes in consumer spending.
What to Watch Through the End of the Year
The forecast ultimately describes a Houston labor market that could finish 2026 with more jobs than it had at the end of 2025, with growth coming from a wider group of industries. But the 29,900 figure remains a forecast, and the monthly employment reports released throughout the rest of the year will show how the actual numbers compare with that projection.
Energy activity and interest rates are also important variables. The forecast assumes relatively flat drilling activity and limited interest-rate relief through the end of the year. Changes in either could affect employment in several connected industries.
For now, the forecast points to a Houston labor market that is growing faster than it did in 2025, with more industries contributing to that growth. The pace remains moderate, but the mix of industries behind the gains is changing.
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