Leads all sectors during an anemic month of hiring overall
(HOUSTON, Texas, July 19, 2024) Houston-area employers added 6,500 jobs in June, boosted again by unexpectedly strong hiring in the Construction sector, according to numbers released Friday by Workforce Solutions. Typically the region adds about 11,000 jobs during the month just completed, meaning this month’s gains are substantially below the long-term average.
The Construction sector accounted for the majority of new jobs last month, or 4,600 hires. About half of that total (2,100 jobs), came from hiring in the Specialty Trade Contractors sub-sector said Parker Harvey, Manager of Regional Economic Analysis at the workforce development agency. “June saw the largest ever gain on record, surpassing the previous record of 3,500 jobs reported in 2007,” he explained. “Typically we see about 600 new jobs in this sector, so this significantly higher than the long-term average.” May hiring in this sector was revised upwards by 200 jobs for a total net gain of 3,000 jobs.
The Other Services sector, which includes includes mechanics and auto repair technicians, advocacy, and laundry services, added 3,500 jobs last month comparable to typical June growth seen in the years leading up to the shutdown caused by the Coronavirus pandemic.
Government sector hiring fell 4,800, continuing a cyclical pattern of job losses as public schools and universities cut staff for the summer. “I expect to see even more losses during July once teachers and school administrator layoffs start showing up,” Harvey explained, adding “We’ll see a reversal of this cycle in September and October once the new academic year starts.”
Not-seasonally adjusted unemployment rose 0.8 percent, nearly a full percentage point higher than May’s rate. Harvey believes a portion of the jump in unemployment can be attributed to layoffs related to the bankruptcy liquidation of the 99-cents Only chain of retail stores which displaced nearly 500 workers. The sudden shutdown of Humble-based U.S. Logistics Solutions did not appear to be a factor given that the closure occurred after the mid-June survey period.
May’s seasonally adjusted unemployment rate was unchanged from April’s 4.2 percent.
Additional labor market information, including the detailed June report can be found online at www.wrksolutions.com/localstats. The Texas Workforce Commission will release July employment data on August 16, 2024.
ABOUT WORKFORCE SOLUTIONS: Workforce Solutions is dedicated to keeping the Texas Gulf Coast region a great place to do business, work and live. Our employer-driven, people-focused approach elevates the economic and human potential of the region to attract and retain the best employers, afford everyone the dignity of a job, and remain indispensable to the global economy. As the public workforce system for 13 counties in the Houston-Galveston region, we work in tandem with the Texas Workforce Commission and the statewide Workforce Solutions network to maintain the state’s largest job-match database – www.WorkInTexas.com.