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Metro Houston’s unemployment rate increased in August, rising to 5.0 percent from 4.5 percent in July, according to data published by the Texas Workforce Commission. Some of this increase reflects an expansion in the labor force, as the region netted over 10,000 individuals who began searching for work or working their first job during the month. Houston’s unemployment rate came in above the national rate of 4.5 percent and the statewide rate of 4.7 percent.

Year-over-year, the national unemployment rate ticked up by 0.1 percent, while the statewide rate experienced a steeper 0.3 percent increase. The local unemployment rate in metro Houston split the difference with an increase of 0.2 percent. Unemployment remains far below the high rates experienced during the COVID-19 pandemic.

Local unemployment rates ranged from 4.2 to 7.7 percent among the 16 Houston-area cities where data is reported. League City, Sugar Land, Pearland, Friendswood, Conroe, Galveston, Rosenberg, and Houston had lower unemployment rates than the metro area average. Alvin’s rate matched that of the overall region, while Baytown, Pasadena, La Porte, Lake Jackson, Texas City, Deer Park, and Missouri City had higher unemployment rates.

Initial claims for unemployment benefits in the region rose sharply with the four-week moving average rising from 4,416 claims in the last week of August to 5,148 in the first week of September – a trend that is also present in the Texas statewide data. A Texas Workforce Commission spokesperson stated that this unusual increase is “directly related to an increased volume of fraudulent claim attempts” since Labor Day. Such fraudulent claims do not reflect a real increase in the number of layoffs and are frequently caught and not paid out.

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]