'Underlying strength' seen in Texas job growth; Austin sets the pace

An article published by the Houston Daily shows that although year-over-year job recovery and growth have been strong in both Austin and Houston, Houston lagged behind Austin’s growth in November.

Houston city staffers countered by saying job growth remained strong in the state’s largest city during the fourth quarter of 2021.

Compared to February 2020, Austin job growth is up 4.1%, making it the second-best performing metro in the United States. Houston, however, is still down 2% over that same period and ranks 27th in the United States.

From November 2020 to November 2021, Houston showed job growth of 4.8%, placing 19th compared to other metro area growth rates in the United States. Austin grew 7.8%, the article stated. Houston matched the statewide job increase from October to November 2021 of 0.6%, while Austin saw a 1% increase.

Houston’s not-seasonally adjusted unemployment rate was 5.1% in November. Austin came in at 3.2%. Seasonally adjusted, the former clocks in at 5.7% and the latter at 3.5%.

Brent Taylor, a city of Houston public information officer and deputy press secretary, consulted with Houston Chief Development Officer Andy Icken to provide some comments on job creation in the city.

Icken’s responsibilities include oversight of development, the Houston Airport System, international trade and development and sustainability, according to an online biography. He previously served as deputy director of public works and engineering for the city’s Planning & Development Services Division.

Before joining the city, Icken served six years as executive vice president of the Texas Medical Center and worked for ExxonMobil for more than 30 years.

“Houston is a friendly city for employers of all sizes, and consumers are anxious to return to pre-pandemic norms,” Taylor told Houston Daily. “The latest numbers from Greater Houston Partnership show that we gained more jobs in the last three months than we normally do in an entire year. Despite travel limitations, we have maintained strong positive relationships with public and private partners around the world, which was on showcase recently when the World Petroleum Congress held their 23rd annual meeting here in Houston.”

The job growth rates since February 2020 for other Texas metro areas are: Dallas-Plano-Irving, 4.1%, fourth among the 50 biggest metro areas; Fort Worth-Arlington, 2.2%, fifth; and San Antonio, 1.35%, ninth.

Houston has projected adding more than 75,000 jobs in 2022, and the city is still ranked highly on Indeed as one of the best cities for recent graduates seeking employment.

“This number hasn’t been specifically identified as a ‘goal,’ but is a projection based on data,” Taylor said. “The city of Houston is full of employers across many industries who, after many months of struggling, are now hiring, signing contracts and closing deals. We continue to monitor COVID-19 and are doing everything we can to support keeping businesses open while maintaining the safety of our residents.”

Regarding why Austin and other Texas cities have outpaced Houston's job recovery, Taylor offered a wry response.

“This question seems to be in response to a report from the City of Austin Chamber of Commerce,” he said. “It’s always good to see other cities using Houston as a way to measure success.”

Taylor pointed to a pair of news stories that showed Texas is rebounding from the economic strain felt during the pandemic.

“Recently, the Texas Workforce Commission announced that Texas unemployment statewide was 5% in December, a decrease of 0.2 percentage points from November,” the Houston Chronicle reported Tuesday, Taylor noted. 

It quoted a report from the Texas Workforce Commission.

“Seeing a second consecutive month of record-setting employment, with more than 13 million jobs, highlights the underlying strength of the Texas economy,” TWC Chairman Bryan Daniel said in a news release. “This economic strength creates an environment for Texas employers to continue to create jobs and provide opportunities for the workforce in the Lone Star State.”

TWC Commissioner Julian Alvarez said all fields show strong indications of job growth.

“After surpassing our pre-pandemic record employment high in November, career opportunities in Texas continued to grow in December,” Alvarez said in the release. “Whether you’re looking to upskill in your current field or find training for a new career, TWC is here to support all Texans in their search for meaningful employment.”

CNN reported that Texas, Arizona, Utah and Idaho all have regained jobs lost to the COIVD-19 economic downturn. Taylor said the Lone Star State has many attractive qualities that lure businesses.

“The state of Texas and the governor’s office have helped all Texas cities recruit and respond to relocation and growth initiatives,” he said. “The pro-business and low tax environment of the state help all of us."

Taylor said the future looks bright for Houston.

“For the past five years, the city has had a very direct focus on innovation and energy transition," he said. "In both cases, the city, the local academic institutions, the GHP and the business community have contributed to making Houston one of the most sought-after places for startups in Texas and this country.”