(HOUSTON, Texas, June 20, 2025) — Houston-area employers added just 3,600 jobs across all industries in May, a figure that falls substantially below the long-term trend, according to data released Friday by Workforce Solutions – Gulf Coast.The leisure and hospitality sector, staffing up ahead of summer, added 7,600 jobs, primarily in restaurants and bars, well above the long-term average of 4,400 for May. The trade, transportation and utilities sector contributed another 3,000 jobs, mostly in the warehousing subsector.
But those gains were not enough to offset continued weakness in the business and professional services sector, which lost 3,200 jobs last month and had its April hiring numbers revised downward by 1,700.
“May’s report reflects a combination of post-pandemic slowing job growth continuing from late last year, and increased economic uncertainty from earlier this spring,” said Parker Harvey, an economist with the workforce development agency. Harvey added that the “next few months will be crucial for the direction of Houston’s job market as we’re currently posting sub-30,000 year-over-year job growth, which is about half of our long-term average.”
Government (-3,000), construction (-900) and manufacturing (-800) sectors posted a combined loss of 4,700 jobs, adding to the declines in business and professional services.
The unemployment rate in the Houston area rose three-tenths of a percentage point in May to a not seasonally adjusted 4.2%. April’s seasonally adjusted unemployment rate was not reported for the Houston area, but the statewide average held steady at 4.1% between March and April.
Additional labor market information, including the detailed May report, can be found online at www.wrksolutions.com/localstats. The Texas Workforce Commission will release June employment data on July 18, 2025.