Houston Loses 30,500 Jobs in July, but Year-Over-Year Growth Remains Strong

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Downtown Houston. Credit: Indira Zaldivar

Houston’s job market took a sharp seasonal dip in July, shedding 30,500 positions, but long-term growth remains steady with more than 62,000 jobs added over the past year, according to new state workforce data.

The Texas Workforce Commission reported that the largest losses came from government and education services, which cut 26,600 jobs in July — the steepest July drop on record since 1990 and nearly double the historical average. Officials attributed the decline to seasonal contract expirations in schools, though this year’s cuts were larger than normal.

Other sectors also posted losses, including professional and business services (down 1,800 jobs), trade and utilities (down 800), manufacturing (down 600) and leisure and hospitality (down 600).

Despite the declines, several industries added positions in July. Financial activities gained 900 jobs, private education and health services added 600 and the information sector ticked up by 100.

Year-over-year, Houston’s economy remains resilient, with nonfarm employment rising by 62,600 jobs, or 1.8%. Private education and health services led the gains with 17,300 new jobs, followed by leisure and hospitality with 14,200, construction with 6,600 and manufacturing with 1,800.

Workforce Solutions reported the Houston metro’s seasonally adjusted employment stood at about 3.46 million jobs in July, with the unemployment rate steady at 4.5%.