Houston’s job market hit a wall in March, adding just 5,700 new positions—the weakest growth for this month since 2019, not counting the pandemic-induced collapse of 2020. While six out of eleven sectors saw gains, the pace of hiring paints a sobering picture for the region’s economic momentum, according to the March 2025, Current Employment and Local Area Unemployment Statics.
(Graphics source: March 2025, Current Employment and Local Area Unemployment Statics.)
The Leisure & Hospitality sector led the modest growth, contributing 3,100 jobs, mostly in restaurants and bars. Yet, even this bright spot fell short of expectations. Parker Harvey, Workforce Solutions’ regional economist, noted that March typically brings around 4,400 new jobs in this category—suggesting a slowdown even in sectors typically buoyed by seasonal demand.
(Graphics source: March 2025, Current Employment and Local Area Unemployment Statics.)
One unexpected performer was government employment, which added 2,600 positions, far exceeding seasonal norms. Other areas showing growth included:
- Private Education & Health Services: +1,700 jobs
- Construction: +1,300 jobs
- Manufacturing: +700 jobs
- Other Services (e.g., repair, laundry, personal care): +1,900 jobs
The most concerning figure comes from the Professional & Business Services sector—typically a bellwether for the broader economy. This category, which includes office-based roles as well as support services like janitorial or waste management, lost a staggering 4,200 jobs. This is the largest March drop on record for the sector.
(Graphic source: March 2025, Current Employment and Local Area Unemployment Statics.)
The unadjusted unemployment rate in the region dropped to 4.2%, down from 4.5% in February. However, analysts caution against reading too much into the number without the seasonally adjusted counterpart, which remains unavailable due to methodological revisions.
Additional labor market information, including the detailed March report, can be found online at www.wrksolutions.com/localstats. The Texas Workforce Commission will release April employment data on May 16, 2025.
