The Partnership sends updates for the most important economic indicators each month. If you would like to opt-in to receive these updates, please click here.

Estimated Reading Time: 3 minutes

The unemployment rates for metro Houston, Texas, and the nation declined in April, according to data released by the Texas Workforce Commission (TWC). Houston’s rate fell to 4.3 percent, down from 4.4 percent in March and the recent high of 4.9 percent in January. The rate for Texas declined to 4.0 percent from 4.1 percent over the month, while the national rate dropped to 4.0 percent from 4.3 percent during the same period.

Unemployment rates were modestly higher year-over-year across all three geographies. Houston and Texas each posted a 0.3 percentage-point increase, compared with a smaller 0.1-point rise nationally. The gains indicate some cooling in the labor market but remain well short of signaling a broad deterioration in overall conditions.

Across the Houston area, unemployment varied more widely by city. Among the 18 Houston-area cities where data are reported, unemployment rates ranged from 3.7 percent to 6.7 percent. Eight cities posted rates below the metro average: Alvin, Conroe, Friendswood, Fulshear, Galveston, League City, Pearland, and Sugar Land. Two cities, Houston and Rosenberg, matched the regional average of 4.3 percent. The remaining eight cities, Baytown, Deer Park, Katy, La Porte, Lake Jackson, Missouri City, Pasadena, and Texas City, reported higher unemployment rates.

Initial unemployment claims have increased since the start of the year, with the four-week moving average rising from 3,786 in the first week of January to 4,324 by mid-May. Even so, they are down year-over-year, dropping from 4,451 claims recorded at the same point last May. The annual decline in claims coupled with the modestly higher unemployment rate during the same period suggests a cooler labor market driven by soft hiring rather than an increase in layoffs.

Prepared by Greater Houston Partnership Research Division.

Colin Baker
Manager of Economic Research
Greater Houston Partnership
[email protected]

Clara Richardson
Research Analyst
Greater Houston Partnership
[email protected]