Skip to main content

Partnership Forecasts Houston Will Create 42,000 Jobs in 2020

Published Dec 05, 2019 by A.J. Mistretta

H_GHP_Downtown_Freeways_2_2019

HOUSTON (Dec. 5, 2019) – The Greater Houston Partnership forecasts the Houston metro area will create 42,300 net new jobs in 2020. The health care, government, accommodation & food services and construction sectors are expected to lead employment growth, though losses are anticipated in energy and retail trade. 

A downturn that’s already begun in the energy industry is thwarting the broader Houston jobs outlook. Investment in that sector is drying up, resulting in fewer wells being drilled, a drop in the rig count and a decline in new equipment orders. Layoffs have already begun in energy services, with more expected to follow across the industry. Meanwhile, sectors tied to population growth, such as health care, and others linked to the global economy, such as manufacturing and trade, will help ensure Houston stays in positive jobs territory in 2020.

“As Houston prepares to enter the 2020s, the region needs a new set of growth engines. Perhaps they will emerge from the Texas Medical Center, the Innovation Corridor, or Houston’s Energy Corridor,” said Patrick Jankowski, Senior Vice President of Research at the Partnership. “Until those new engines emerge, Houston’s growth will depend heavily on the U.S. and global economies. Fortunately, both should perform reasonably well next year.” 

This year’s Employment Forecast includes a sector-by-sector look at Houston’s major industries, including their contribution to the region’s GDP, current employment and the forecasted change in jobs in 2020. 

The top five industries by percentage of GDP are: 

  1. Manufacturing: $83.1 billion or 17% of GDP | Current jobs: 241,000 | 2020 forecast: 1,000 jobs gained 
  2. Real Estate and Rental and Leasing: $44.4 billion or 9.1% of GDP | Current jobs: 63,400 | 2020 forecast: 1,200 jobs gained 
  3. Energy: $44.3 billion or 9% of GDP | Current jobs: 87,400 | 2020 forecast: 4,000 jobs lost 
  4. Wholesale Trade: $42 billion or 8.6% of GDP | Current jobs: 172,000 | 2020 forecast: 1,000 jobs gained 
  5. Professional, Scientific, and Technical Services: $39.5 billion or 8.1% of GDP | Current jobs: 252,900 | 2020 forecast: 4,700 jobs gained 

Jankowski said an oversaturated real estate market and a bleak outlook for oil and gas paint a current picture similar to what Houston faced after the 1980s oil bust. But he said it’s important to remember that since that downturn, the region has added 3.4 million residents and 1.5 million jobs, making the economy far more resilient. As of October 2019, Houston’s employment stood at 3.2 million, a record high for the region. 

Click here to see the full report, including additional jobs figures by industry. For a look back at the economy in 2019 by industry, click here for the Houston Economic Highlights report.

The mission of the Partnership is to make Houston one of the world’s best places to live, work and build a business. To that end, the Partnership provides this forecast to help the Houston business community and those involved in economic development in the region understand trends influencing the region’s economy and driving industry gains or losses. The forecast is designed to help businesses make better investment, staffing and purchase decisions in the coming year.

CONTACT:    

A.J. Mistretta                    Maggie Martin 
(o) 713-844-3664             (o) 713-844-3640
amistretta@houston.org  mmartin@houston.org 
 

Related News

Economic Development

California Leads Houston HQ Relocations and Other 2020-2021 Highlights

7/28/21
Houston is a proud top global market for headquarters, driven by its low costs of doing business, global interconnectivity and a diverse, top-tier talent pool. The latest Fortune 500 rankings are a testament to Houston's success as a headquarters capital, with 24 of those companies headquartered in Houston. Companies of every size, location and industry recognize the nation's fourth largest city as a top headquarters city.  The Partnership took a closer look at companies who've chosen Houston as a headquarters location in the past year, examining their sectors, origins and the type of relocation. Here are some of the key takeaways: More Than A Dozen Companies Have Relocated Their HQ to Houston  Thirteen companies have relocated their headquarters to Houston since last summer, including Hewlett Packard Enterprise, NRG Energy, Axiom Space and Roboze. Another two companies set up their regional headquarters in Houston in the past year (Carbon Neutral Energy and GCP Paper USA), and one has set up their second headquarters in the Bayou City (Avetta). California Top State for Houston Relocations Four companies - Maddox Defense, Sun Haven, Axiom Space, and Hewlett Packard Enterprise - relocated their headquarters from California to Houston in the past year.  Roboze moved their HQ the furthest - about 5,900 miles from Bari, Italy.  Manufacturing Leads Industry Relocation Manufacturing boasts the greatest number of relocations with four companies (Tailift Material Handling USA, Roboze, Great Lakes Dredge & Dock Co. and Sun Haven). Oil & gas (Ring Energy Inc. and Contango Oil & Gas), life sciences manufacturing (Dominion Aesthetics Technologies Inc. and Maddox Defense) and digital technology (Hewlett Packard Enterprise and Avetta) followed closely behind.  Learn what makes Houston an attractive place for headquarters. See the 24 Fortune 500 companies who are headquartered in Houston. 
Read More
Economy

Economic Update: Employment, COVID and a Look Back at the Last Decade

7/22/21
Houston has overcome significant hurdles from the COVID-induced recession, but difficulties still lie ahead. During this week's Economy Series webinar, Patrick Jankowski, the Partnership’s Senior Vice President of Research, discussed how Houston has recovered and what the region can expect through the remainder of the year. Here are the five key takeaways to know: EMPLOYMENT: The industry sectors most impacted by social distancing have nearly recovered. Metro Houston lost 361,400 jobs in March/April ’20. However, 213,500 jobs, 59.1 percent of jobs lost, have been recovered since then. Construction and manufacturing have the most jobs to recoup in Houston, needing to fill gaps of 33,400 and 26,300 jobs respectively.    COVID/VACCINE: The Delta variant continues to spread rapidly throughout the U.S., including Houston, due to vaccine hesitancy. A fourth wave of the pandemic may be underway. More than a hundred COVID-19 patients were admitted daily to hospitals in the Texas Medical Center over the weekend of July 16 to 18. The weekly average of daily new COVID-19 cases in the Houston region jumped to 507 in the week prior to this webinar: July 12 to 19.    INFLATION: Inflation has jumped over the past few months to the highest rates since ’08, due to supply chain bottlenecks and consumers eager to spend savings accumulated during the pandemic. Although higher than expected, inflation is expected to subside by the end of the year and into ’22. The Federal Reserve, although admitting concern, does not plan to adjust monetary policy to address the inflation.    GDP GROWTH: GDP growth has been high over the past few quarters, reaching 6.4 percent in Q1/21 and forecasted to be 9.11 in Q2/21. The high GDP growth rate has been driven by reopening economies and robust consumerism due to pent-up demand. The GDP growth rate is expected to subside but remain strong in ’21 and into ’22.    Click to expand OVER THE PAST 10 YEARS: The annual Houston’s Economic Highlights publication was launched during the webinar, with links to the digital publication provided in advance to attendees. The publication provides an overview of Houston over the past 10 years. ‘Highlights’ from Highlights include: the more than 1.2 million new residents added, and the 644,500 jobs added, all since ’10.   Next month’s Economy Series will be an in-person event at Partnership Tower and feature the annual Houston Facts publication. The Partnership Research division will present key findings from the publication, which will be handed out at the event. Seats are limited so sign up early to secure your spot.  Get the latest data and analysis from the Partnership.   
Read More

Related Events

COVID-19

Economy Series: Houston Facts

Join us to receive exclusive analysis on the newest Houston data from the Partnership's Research team. Topics include the region's demographics, economy, innovation updates and more. Used by corporate planners…

Learn More
Learn More
Executive Partners