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The unemployment rates for metro Houston, Texas, and the nation declined in March, according to data released by the Texas Workforce Commission (TWC). Houston’s rate fell to 4.4 percent, down from 4.7 percent in February and the recent high of 4.9 percent in January. The rate for Texas declined to 4.1 percent from 4.4 percent over the month, while the national rate dropped to 4.3 percent from 4.7 percent during the same period.
Houston’s comparatively higher unemployment rate partly reflects its younger population, which generates more first-time job seekers than the nation as a whole.
Compared with a year earlier, unemployment rates were only modestly higher across all three geographies. The Houston and national rates each rose by 0.2 percentage points, while the Texas rate increased by 0.1 percentage points. These slight increases suggest some softening over the past year, but not a meaningful deterioration in labor market conditions.
Across the Houston area, unemployment varied more widely by city. Among the 16 Houston-area cities where data are reported, unemployment rates ranged from 3.8 percent to 7.0 percent. Eight cities posted rates below the metro average: Alvin, Conroe, Friendswood, Galveston, Houston, League City, Pearland, and Sugar Land. Rosenberg matched the regional rate at 4.4 percent, while the remaining seven cities, Baytown, Deer Park, La Porte, Lake Jackson, Missouri City, Pasadena, and Texas City, reported higher unemployment rates.
Initial unemployment claims have edged up modestly since the start of the year, with the four-week moving average rising from 3,786 in the first week of January to 4,383 by mid-April. Even so, claims remain below the late-November surge, when the average climbed to 4,873. Claims were also virtually unchanged from the 4,398 recorded a year earlier, suggesting that layoffs remain broadly in line with their levels a year ago.
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]