The Houston-area job market showed slight improvement in February, with employers adding 15,200 jobs to their payrolls, according to the latest data from Workforce Solutions. While the February figures indicate a recovery from the post-holiday slump, the data also reveals a cooling of the post-pandemic hiring surge.
Leisure & Hospitality and Construction Sectors Lead Job Gains
Of the 11 sectors tracked in the Houston area, only four saw job growth in February. The Leisure & Hospitality sector led the way, rebounding from a typical post-holiday dip and adding 4,300 jobs. Restaurants and bars were the primary drivers of this growth, with 3,300 new positions created in the food service industry.
The Construction sector also showed signs of recovery, adding 4,000 jobs, slightly above the long-term average. Specialty Trade Contractors were the big winners within the sector, accounting for three out of every four jobs added in February.
Professional and Business Services Sector Faces Job Losses
On the flip side, the Professional and Business Services sector faced a setback, shedding 1,400 jobs during February. The majority of cuts came from the Professional, Scientific, and Technical Services subsector, marking the second-largest decline in this sector for a February month.
Parker Harvey, regional economist at Workforce Solutions, noted that this decline contrasts with the usual job gains seen in this sector during February. Hiring in the sector had already been revised downward from January.
Unemployment Rate Edges Up
Houston’s unemployment rate increased slightly in February, rising by 0.1 percentage points to 4.5%. This corresponds to 174,561 unemployed individuals in the region. The seasonally adjusted unemployment rate was unavailable due to changes in the methodology at the Bureau of Labor Statistics and the Office of Management and Budget. For comparison, Texas’ seasonally adjusted unemployment rate for January stood at 4.1%.
Looking Ahead
The Texas Workforce Commission will release March employment data on April 18, 2025. For more detailed labor market information, including the Benchmark Revision special report for January, visit the Workforce Solutions website at www.wrksolutions.com/localstats.
About Workforce Solutions
Workforce Solutions is committed to maintaining the Texas Gulf Coast region as a thriving hub for business, work, and quality of life. With a focus on employer-driven and people-centric approaches, Workforce Solutions works to attract and retain top employers while providing job opportunities for all. The agency operates as the public workforce system for 13 counties in the Houston-Galveston area and collaborates with the Texas Workforce Commission and the statewide Workforce Solutions network.
