The Houston job market experienced a seasonal decline in January, with employers cutting 40,700 jobs, according to data released by Workforce Solutions – Gulf Coast. The downturn was largely driven by post-holiday employment shifts in retail, logistics, and hospitality.
Job Losses Across Multiple Sectors
The Trade, Transportation, and Utilities sector, which includes many temporary holiday retail and logistics positions, saw the steepest decline, shedding 15,900 jobs—a 2.2% drop. Similarly, the Leisure & Hospitality sector lost 5,900 jobs as seasonal staffing for holiday events and travel came to an end.
Overall, eight of the eleven tracked industry sectors reported job losses for the month. However, some industries showed resilience. The Mining and Logging sector added 1,500 jobs, while Other Services grew by 500 jobs. Private Education and Health Services employment remained stable.
Unemployment Rises Slightly
The Houston-area not-seasonally adjusted unemployment rate increased to 4.4% in January, a slight uptick from December. Seasonally adjusted unemployment data for the month remains unavailable due to reporting delays from the Texas Workforce Commission.
2024 Job Growth Recap
Despite the January losses, Houston’s job market showed steady growth in 2024. Workforce Solutions’ benchmark revisions confirmed that the region added 49,500 jobs last year, marking a return to pre-pandemic employment trends.
To provide context:
- Houston lost nearly 185,000 jobs in 2020 due to the COVID-19 pandemic.
- The city rebounded with over 100,000 jobs gained annually in both 2021 and 2022.
- In 2023, job growth slowed to 84,300 new jobs, with the latest revision showing a further dip.
Looking Ahead
Employers and job seekers can access detailed labor market reports, including the January Benchmark Revision special report, at www.wrksolutions.com/localstats. The Texas Workforce Commission is set to release February employment data on March 28, 2025.
As Houston navigates economic fluctuations, Workforce Solutions continues to support businesses and job seekers, ensuring the region remains a strong employment hub.
