HOUSTON – (By Michelle Leigh Smith for Realty News Report) – Houston’s economy is expected to slow slightly in 2020, according to the annual forecast presented by Patrick Jankowski, economist for the Greater Houston Partnership.
The region is forecast to add 42,300 jobs in 2020, a decrease from the 64,400 jobs projected for 2019.
A pullback in the energy sector will temper regional growth next year.
“There’s a little bit of a slowdown in oil and gas, and fewer wells are being drilled. Energy makes up 9 percent of Houston’s Gross Domestic Product,” Jankowski said at the Partnership’s Houston Region Economic Outlook event at the Royal Sonesta hotel on the West Loop.
Of the region’s current 87,400 energy jobs, Jankowski expects the sector to shed about 4,000 positions in 2020.
The decline in the rig count, reduced orders for new equipment and reported layoffs in energy services point to softer activity in the sector.
At the same time, other parts of the economy tied to population growth—most notably health care—and segments connected to global trade and manufacturing should keep Houston in positive net job creation next year.
“As Houston prepares to enter the 2020s, the region needs a new set of growth engines. Perhaps they will emerge from the Texas Medical Center, the Innovation Corridor, or Houston’s Energy Corridor,” Jankowski said. “Until those new engines emerge, Houston’s growth will depend heavily on the U.S. and global economies. Fortunately, both should perform reasonably well next year.”
Employment numbers are at record highs.
“As of October 2019, Houston’s employment stood at 3.2 million—a record high for the region,” Jankowski noted.
In the real estate sector, which accounts for roughly 9.1 percent of regional GDP, about 63,400 jobs currently exist. Jankowski forecasts the real estate industry will add approximately 1,200 jobs in 2020. While the Houston office market is soft and faces elevated vacancy, other real estate segments have remained healthy.
Dec. 6, 2019 Realty News Report Copyright 2019
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