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Metro Houston’s unemployment rate improved again in November, falling to 4.5 percent from 4.8 percent in September, according to the Texas Workforce Commission. The rate is down half a percentage point from its recent peak of 5.0 percent in August. October data was not released, and the November report was delayed after the government shutdown disrupted the normal publication schedule. Even with the improvement, Houston’s rate remained slightly above the U.S. (4.3 percent) and Texas (4.4 percent) rates.

Although unemployment fell month-over-month in all three geographies, rates were still marginally higher than a year ago – up 0.1 percentage points in both Houston and Texas, and up 0.3 points nationwide.

Local unemployment rates ranged from 3.9 to 7.1 percent among the 16 Houston-area cities where data is reported. Conroe, Friendswood, Galveston, Houston, League City, Pearland, Rosenberg, and Sugar Land had lower unemployment rates than the metro area average. Alvin, Baytown, Deer Park, La Porte, Lake Jackson, Missouri City, Pasadena, and Texas City had higher unemployment rates.

Initial unemployment claims data have not yet been released for January. After a September surge in fraudulent filings that temporarily pushed claims to be artificially high, claims in the region cooled in October before a notable spike to 4,873 by the end of November. Claims dropped sharply in December to end the year at 4,067, representing the lowest reading since February. But, they are still elevated relative to the 3,661 a year prior in December ’24.

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]