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Metro Houston’s unemployment rate fell from 4.2 percent in March to 3.9 percent in April, according to the Texas Workforce Commission. Houston’s April number came in slightly higher than the Texas rate of 3.7 percent but matched the U.S. rate. Unemployment rates also fell over the month for the U.S. and Texas, which is the typical pattern for April as seasonal factors led to more hiring in key sectors. Unemployment rates are up marginally compared to April last year across the three areas.

Annually, the national unemployment rate ticked up to 3.9 percent from 3.5 in April of last year. The rates for Texas and Houston showed smaller increases during the same time. Unemployment remains far below the high rates experienced during the COVID-19 pandemic.

Friendswood, League City, Sugarland, Pearland, Conroe, Galveston, and Rosenberg had lower unemployment rates than the metro area average. Alvin matched the overall region with an unemployment rate of 3.9 percent. Baytown, Lake Jackson, Pasadena, Missouri City, Texas City, La Porte, Deer Park, and Houston had higher unemployment rates.

Initial claims for unemployment benefits have reached their highest levels since last summer when the region was recovering from Hurricane Beryl. In the first week of May, the four-week moving average hit 4,495 claims filed. This represents a notable increase over the 3,256 average weekly claims at the start of January. Initial claims may have increased while the unemployment rate fell for a number of reasons, including: a growing workforce, a growing share of residents who have been unemployed for multiple weeks giving up on finding work, or layoffs late in the month that will be reflected in May’s unemployment rate. 

Prepared by Greater Houston Partnership Research

Colin Baker
Manager of Economic Research 
Greater Houston Partnership
bakerc@houston.org

Clara Richardson
Research Analyst
Greater Houston Partnership
crichardson@houston.org