Houston-area employers cut 7,300 jobs in September, a month when the region usually adds about 5,900. According to Workforce Solutions Gulf Coast’s latest Houston Area Employment Situation, it was the second-largest September decline on record since 1990.
Every major private-sector industry reported job losses in September. Leisure and Hospitality took the biggest hit, while government hiring for the new school year helped soften the losses. Leisure and Hospitality took the biggest hit, while government hiring for the new school year helped soften the losses.
“One month doesn’t establish a trend, but the breadth of these declines makes the next few reports especially important,” said Mohammad Ahmadizadeh, economist at Workforce Solutions Gulf Coast.
There were bright spots, too. Houston’s unemployment rate fell to 4.6 percent, down from 5.0 percent in August and 4.8 percent a year earlier. Over the past year, Professional and Business Services and Construction have led the region’s job growth.
Workforce Solutions continues to forecast that Houston will add approximately 29,900 jobs from December 2025 to December 2026. Slower hiring was expected in the second half of the year, but September’s private-sector losses leave open questions about how the final months will play out.
The Texas Workforce Commission is scheduled to release October employment figures on November 20, 2026. The full report and additional regional labor market data are available from Workforce Solutions Gulf Coast.
Explore in-demand careers and connect with top employers at upcoming Workforce Solutions hiring events. Register today to secure your spot and access career-building resources.
