The Partnership sends updates for the most important economic indicators each month. If you would like to opt-in to receive these updates, please click here.

Estimated Reading Time: 2 minutes 

The unemployment rates for metro Houston, Texas, and the nation rose in June, according to the Texas Workforce Commission (TWC). Houston’s unemployment rate jumped from 4.0 percent in May to 4.8 percent in June, Texas from 3.8 percent to 4.5, and the U.S. from 3.7 to 4.3 percent. The rates are not seasonally adjusted.

Three factors account for the jump in the unemployment rate. 

First, the unemployment rate always rises in June as high school and college students temporarily enter the workforce seeking summer employment. The rate typically declines in the fall as they return to school. Over the past 20 years, Houston’s unemployment rate has jumped 0.3 and 0.8 percentage points between May and June, with the average jump around 0.6 points. This year’s increase is at the high point of that range.

Second, Houston always experiences a surge in the labor force in June as high school and college grads permanently enter the workforce. The region’s workforce grew by over 41,500 workers in June, the fourth biggest monthly gain of the past 30 years. It will take a few months for the economy to absorb those workers. The region’s labor force now tops 3.7 million, an all-time high.

Third, economic growth has slowed, both locally and across the U.S. Metro Houston created only 6,500 jobs in June, outside the range of 7,000 and 16,000 jobs it typically creates in the month. But for the 12 months ending June ’24, the region has created 78,000 jobs. The economy is still growing but at a slower pace.

Among cities in the metro area for which TWC publishes unemployment rates, Bryan had the lowest rate in May and Baytown the highest.

Initial claims filed for unemployment benefits have ticked up in recent months. Claims typically rise in the early summer and then drop off as fall approaches. However, the average for mid-July this year is 19.2 percent below claims for the comparable period in ’23.

Continued claims filed by workers unemployed for a week or more rose in June and are 2,700 higher than June of last year. The approximately 35,500 individuals filing continued claims in June represent less than one percent of the region’s civilian workforce.

Prepared by Greater Houston Partnership Research

Patrick Jankowski, CERP
Chief Economist 
Senior Vice President, Research
pjankowski@houston.org

Leta Wauson
Research Director
lwauson@houston.org