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Metro Houston’s unemployment rate fell from 4.5 percent in February to 4.2 percent in March, according to the Texas Workforce Commission. Houston’s March number came in slightly higher than the Texas rate of 4.0 percent, but matched the U.S. rate. National and statewide unemployment rates also fell between February and March. Seasonal factors likely played a role with hiring for schools ramping up and temporary holiday workers finding new jobs.

Annually, the national unemployment rate ticked up from 3.9 percent in March of last year. The rates for Texas and Houston showed minimal increases during the same time. Unemployment remains far below the high rates experienced during the COVID-19 pandemic.

Conroe, Friendswood, Galveston, League City, Pearland, and Sugar Land had lower unemployment rates than the metro area average. Alvin, Houston, and Rosenberg matched the overall region with unemployment rates of 4.2 percent. Baytown, Deer Park, La Porte, Lake Jackson, Missouri City, Pasadena, and Texas City had higher unemployment rates.

Initial claims for unemployment benefits have been rising since the beginning of ‘25. Claims averaged 4,372 per week in March, up from 4,043 in February and 3,704 in January.

Prepared by Greater Houston Partnership Research

Colin Baker
Manager of Economic Research 
Greater Houston Partnership
bakerc@houston.org

Clara Richardson
Research Analyst
Greater Houston Partnership
crichardson@houston.org