Houston added jobs at a pace far above the national average last year, ranking third among U.S. metros for employment growth, according to the Greater Houston Partnership’s annual Midyear Economic Update. The region created 39,700 jobs in fiscal year 2025-26, representing roughly 8% of nationwide job gains despite Houston’s smaller share of the national population.
Where Houston stands nationally
The partnership’s presentation placed Houston behind only New York and Dallas in total job increases over the 12-month period. The top five metros were:
- New York — 69,100 jobs
- Dallas — 54,600 jobs
- Houston — 39,700 jobs
- Los Angeles — 37,400 jobs
- Phoenix — 33,200 jobs
By comparison, the United States created about 531,000 jobs during the same period. The partnership’s director of economic research, Colin Baker, said Houston’s job creation rate was roughly four times the pace of the rest of the country.
Construction drives local gains
Unlike recent years when healthcare was the city’s top growth sector, construction led job additions in 2025-26. The region added approximately 15,000 construction jobs, a surge the partnership attributes in part to public infrastructure investment.
“We saw significant investment in terms of public infrastructure projects,” the presentation noted, pointing to road repaving and electrical infrastructure work tied to resiliency plans.
The shift toward construction jobs signals strong demand for labor tied to building and maintenance projects across the region. The presentation contrasted Houston’s sectoral pattern with other metros where different industries led growth.
Measuring impact and risks
Houston’s outsized contribution to national job gains highlights the city’s economic momentum, but analysts at the partnership cautioned that sector concentration carries trade-offs. Heavy reliance on construction could leave employment totals sensitive to changes in public funding cycles or private development decisions.
During the presentation, Baker emphasized that most major metros added jobs during the period; the notable exception was Washington, D.C., where federal layoffs produced significant losses.
| Metric | Value |
|---|---|
| Houston jobs added (FY 2025-26) | 39,700 |
| U.S. jobs added (12 months) | 531,000 |
| Construction jobs added in Houston | 15,000 |
Local consequences and context
For Houston residents, the growth figures have several practical implications. More construction jobs can mean increased hiring opportunities for skilled trades and laborers, and expanded construction activity can stimulate related services such as materials supply, transportation and food service near active worksites. At the same time, rapid hiring in one sector may not translate to broad-based wage gains if other industries lag.
Policy-makers and employers will watch whether the construction-led expansion sustains, diversifies into other sectors, or cools if public infrastructure spending eases. The partnership’s findings also underscore the importance of workforce development and training programs that connect local job-seekers to openings in high-demand fields.
The Midyear Economic Update framed Houston’s performance as part of a broader trend of strong job creation in Texas metros, with the state’s largest urban areas occupying multiple spots near the top of the national rankings. For now, the data indicate a Houston labor market that is robust compared with national averages, even as officials and stakeholders weigh the benefits and vulnerabilities of current sectoral growth patterns.
Follow-up reports from the Greater Houston Partnership and local workforce agencies will shed further light on which occupations and neighborhoods are most affected as the region adjusts to these employment shifts.
