The Houston area ended 2024 on a positive note, with employers adding 5,700 new jobs in December. While this figure falls below the long-term average, it aligns with recent trends, according to data released by Workforce Solutions Gulf Coast.
December’s job gains were primarily driven by the Trade, Transportation, and Utilities sector, which saw the most growth among the eleven sectors tracked by the workforce development agency. Within this sector, retail trade led the way, adding 3,900 jobs as businesses prepared for the final stretch of the holiday shopping season. Warehouse operators also contributed to the overall growth, expanding payrolls by 1,400 jobs. Other sectors contributing to December’s job growth included Financial Activities, Manufacturing, Information, and Other Services, which collectively added 3,600 jobs.
However, not all industries experienced growth. The Leisure and Hospitality sector saw job losses for the second consecutive December, cutting 2,100 positions. Additionally, Private Education & Health Services (-1,400), Professional & Business Services (-600), Construction (-400), and Mining and Logging (-300) all posted declines in employment.
Despite the mixed results, regional economic analyst Parker Harvey noted a broader pattern in December’s job growth over recent years. “While we have added jobs each December since 2020, it’s been a seesaw of weak growth one year followed by strong growth the next, with an average of 4,700 jobs added between December 2020 and December 2023.”
Harvey also pointed out a shifting trend in seasonal hiring: “Job growth during the holidays continues to get pulled forward earlier in the season with each passing year, with October and November posting larger and larger gains. Hence, we may need to adjust our expectations for all Decembers going forward.”
The not-seasonally adjusted unemployment rate for December stood at 4.1 percent, reflecting a nearly half-percent decrease from November. Meanwhile, the seasonally adjusted unemployment rate for November edged up slightly to 4.6 percent, a 0.1 percent increase from October.
For a more detailed breakdown of the December labor market report, visit www.wrksolutions.com/localstats. The Texas Workforce Commission is set to release January employment data on March 14, 2025, which will include annual benchmark revisions.
