Tuesday, December 15, 2009, 2:09pm CST

Economic activity will improve in the first half of 2010, and by year’s end, Houston will have a net gain of 1,900 jobs, according the Greater Houston Partnership’s end-of-year forecast.

“Houston’s recovery has begun,” the report stated.

The numbers were presented Dec. 14 at a GHP-sponsored event at the Intercontinental Hotel featuring a panel of economic experts.

Demand for chemicals and plastics products used in construction and manufacturing will drive growth in 2010, the report said. An upturn in Asian economies is expected to bring growth to the city’s wholesale trade sector, which will add 5,200 jobs.

Other sectors expected to see a net gain in jobs are health care (2 percent gain); food services (0.5 percent) and administrative and support services, which is expected to pick up 5,400 jobs. Largely driven by gains in the public education sector, the public sector will add an additional 4,100 jobs.

Not all areas will see a recovery, however.

The report said that construction is expected to continue to lag behind other sectors. Strict lending standards has meant that ground-breaking on new commercial projects has all but halted. Job losses in construction are expected to continue at an annual rate of around 3.1 percent.

Natural gas prices are expected to remain low, resulting in continued layoffs for the upstream energy industry into the new year. Oilfield services firms are expected to drop another 1,400 jobs during 2010.

The expected gains follow a year of dramatic losses for the local economy, with the city losing 93,000 jobs in fiscal year 2009. But the drop is mild compared to other major metros hard-hit by the recession. Phoenix, Miami and Atlanta all topped six-figure job losses.