The Houston Economy

The economic reports for the first quarter of 2015 has shown that economic growth is at the forefront in Houston. In 2014, the Houston metro area was the fastest-growing area in the nation with an economy to match – since 2014, Houston’s gross domestic product (GDP) has increased by nearly $115 billion. While dropping oil prices have raised cause for concerns, as a whole, Houston’s economy is thriving.

Unemployment Lower than National Average

The close of 2014 marked an improvement in unemployment rates – according to findings from the Bureau of Labor Statistics, the average unemployment rate for the entire nation was 5.4 percent, down from 6.5 percent in 2013. Houston’s economy may be evidenced by its lower-than-average unemployment rates – in 2013, the area had a 5.5 percent unemployment rate, which dropped to 4.1 percent in December of 2014. Houston employers may have to be more competitive to find the best talent than in others areas of the country where unemployment is higher.

Job Growth

Not only is Houston’s unemployment rate on the decline overall, it’s keeping pace as new jobs are being added as well. Nonfarm jobs grew over four percent from 2013 to the end of 2014. Certain industries experienced the biggest growth: mining/logging (which includes oil and gas extraction) maintained the most job additions, with over 10 percent growth – even as oil prices started dropping in 2014. Other industries with notable growth include construction (approximately eight percent) and the education/health sectors (nearly seven percent). As more jobs are created, Houston employers will need to be proactive in recruiting top candidates on an ongoing basis.

Decline in Energy Costs

The drop in energy costs is a trend nationwide, not just in Texas. The US average spending on energy dropped 10.6 percent in 2014, while Houston energy costs declined by 11.1 percent. The economic implications appear to be balanced out with both positive and negative results. While it is likely that Houston will lose demand for oil and gas industry jobs as energy costs drop, the Houston economy as a whole is thriving and projected to remain as such.

Be prepared for the hiring needs that accompany Houston’s changing economy with the help of Professional Alternatives. We have been working with Texas employers since 1998 to assist them in achieving their business objectives. Professional Alternatives provides temporary, temp-to-hire, and direct placement services. Our business units serve specific niche, so you can be assured that candidates will be the right match. Contact Professional Alternatives today to learn more about our employer services.