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Houston Forecasted to Add Approximately 57,000 Jobs in 2024, Returning to Sustainable Pace

Published Dec 06, 2023 by Ernesto Becerra

Patrick Jankowski Houston Region Economic Outlook 2023

HOUSTON (Dec. 7, 2023) — The Greater Houston Partnership forecasts the Houston region will see job growth in 2024, although at a slower pace, as interest rates, a tight labor market and turmoil in commercial real estate weigh on the economy.

In the Partnership’s forecast, the region is projected to add 57,600 jobs, returning to a more sustainable pace after record job growth post-pandemic. Houston added nearly 200,000 more jobs than it did before the pandemic as of October 2023. 

“The Houston region has been running at a sprint ever since emerging from the pandemic. So, while growth will slow down next year, Houston’s economy remains resilient,” Partnership Chief Economist Patrick Jankowski said. 

According to the forecast, job losses in 2024 will occur in construction, finance and insurance, information, and real estate – industries impacted by higher interest rates, tighter lending standards and ongoing labor shortages.

There is a growing consensus among economists that the U.S. will skirt a recession next year after the long-awaited recession never materialized this year. According to the Wall Street Journal’s latest quarterly survey of business and academic economists, they placed the probability of a recession within the next year at 48 percent, the first time it was below 50 percent since 2022.

But there is concern that events beyond the U.S. Federal Reserve’s control, such us geopolitics, could still trigger a recession. Houston’s economy is directly tied to the national economy and will almost certainly follow the U.S. into any recession.

A sector-by-sector breakdown of the jobs forecast and the factors impacting each industry can be found in the full report.

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Texas Lawmakers Prioritize Economic Growth with New Committees

1/30/25
Every Texas legislative session brings something new: bold policies, fresh faces on the chamber floor, or, in this case, a new focus on making the Texas economy bigger and better. This year, the Texas House and Senate have restructured their standing committees, creating stand-alone panels to emphasize economic development and other key drivers of the state’s economy. In the Texas Senate, returning Senator Phil King will chair the newly formed Committee on Economic Development. Previously, the committee was a policy-combination focusing on Natural Resources and Economic Development. King, who previously served as Vice-Chair for the Senate Committee on Business & Commerce, said he is excited to take on the leadership position in the upper chamber. “I am honored that Lt. Gov. Patrick has entrusted me to lead the Economic Development Committee in Texas, which has the eighth largest economy in the world,” Senator King said in a statement to the Partnership. “We will use this session to discuss policy solutions that can continue to drive our state's economic growth and prosperity over the next two years and beyond. I look forward to hearing from business leaders and local officials from across the state on how we can build upon the Texas Miracle in their communities.” The Texas House created the Committee on Trade, Workforce, and Economic Development. Under first-term Speaker Dustin Burrows, the House will have a committee focused on the workforce and expanding the talent pipeline for the first time. Committee assignments for the Texas House have yet to be released.  Burrows told the Partnership he is committed to seeing Texas build a bigger and better economic engine for future generations.  "The Texas House remains focused on delivering legislative solutions that will strengthen our state's mighty economy and provide more economic opportunities for hardworking Texans," said Speaker Dustin Burrows. "This session, the House's new Committee on Trade, Workforce, and Economic Development will take a comprehensive approach to ensuring businesses have the freedom and tools to thrive in our state, with a newly created subcommittee concentrating on policies to bolster the Texas workforce. The House will also prioritize support for small businesses through legislation that aims to unleash the power of Texas entrepreneurship in communities across the state by cutting taxes and reforming the regulatory process." It’s too soon to say which bills will go to these committees. For now, a review of the interim reports from the previous committees points to support of key policy priorities for the Partnership: Early Childhood Education: the House and Senate both recognized a statewide need for expanding programs that support families and young children in education/developmental programs The successful implementation of the Lone Star Workforce of the Future Fund [HB 1755 - 89(R)] is compelling lawmakers to invest further in innovation and growth for apprenticeship and training programs. Expanding the available workforce talent pool will remain a priority for the 89th Texas Legislature. Click below to read the full interim reports from the following committees: Senate Committee on Natural Resources and Economic Development House Committee on International Relations and Economic Development To learn more about the Partnership's Legislative Priorities, click here. For more updates and alerts on the Texas Legislature, click here to sign up for our weekly newsletter.
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