As we wrap up Q3, I wanted to give you all an update on the latest economic trends, both nationally and here in Houston. There’s a lot happening, and these insights could have a real impact on your industries and careers as we head toward the end of the year.

National Economic Update: The labor market continued to cool in August. Job creation among private employers slowed for the fifth straight month and wage growth was stable. That said, recent data shows that job growth over the last year wasn’t as strong as initially thought. Between April 2023 and March 2024, U.S. employers created 818,000 fewer jobs than the Bureau of Labor Statistics originally reported. This adjustment puts the monthly average at 175,000 jobs instead of the 242,000 initially reported. Meanwhile, the unemployment rate ticked up to 4.3% in August from 3.5% in July.

There’s also been a drop in job vacancies, now down to 8.8 million from the 12.0 million peak in March 2022. Fewer people are quitting their jobs too, which could help ease the pressure on wages and inflation.

What’s Happening in Houston: Houston’s economy has held up well this year, even if things are moving slower than I’d like. It’s an election year, so a bit of a slowdown is normal, but I think we’ll see a bounce back in 2025 once the dust settles. Here’s a look at some key trends:

• Payroll Employment: We hit a new record in May, but the 12-month rolling average is starting to dip a bit.
• Unemployment Rate: Still below the long-term average, and claims for unemployment benefits are holding steady.
• Crude Oil: Prices are higher than they were last year, but fewer drilling rigs are in operation.
• Purchasing Managers Index (PMI): The PMI shows that our economy is growing, but not nearly at the pace it was two years ago.
• Exports: Houston’s exports are climbing, and global trade forecasts suggest this trend will continue.
• Construction: We’re seeing more activity both within the city and in the suburbs.
• Vehicle Sales: New car sales have dipped a bit, which has helped stop the rise in prices.

Houston Job Market: The job market in upstream energy, real estate, construction, and oil field services continues to show steady hiring, particularly for senior accountant and accounting manager roles. While the pace has slowed recently, the hiring booms of 2021 and 2022 are now in the past.

That’s it for this update! Stay tuned as we head into Q4—I’m keeping an eye on the trends and will continue to share how they might affect you and your industry.
Stay connected with me on LinkedIn for further updates and insights. I welcome all connection requests: Lets Link In!

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