The specific industries that make up Houston’s broader leisure and hospitality sector are likely to see job gains in the year ahead thanks in part to increases in consumer spending and major events like the World Baseball Classic and FIFA World Cup, according to a new report from the Greater Houston Partnership.

The big picture: The Partnership’s annual economic forecast projects modest growth of Houston metro employment of around 30,900 jobs in 2026. Those gains are likely to be led by sectors such as healthcare, construction, and public education. The Partnership’s forecast is weaker than in recent years, dragged down by factors such as declining energy production and concerns around shifting geopolitics. Still, the forecasted gains would expand local employment to 3.52 million jobs by the end of 2026.

Inside the numbers: With more than 300,000 jobs, the food services and drinking establishments sector is one of the region’s largest industries, accounting for 8.8% of total employment. Heavily tied to population growth and where people are living, the industry consistently delivers net employment gains each year. Metro Houston has more than 13,000 restaurants, cafes and bars, adding on average 200 new establishments annually. While rising food costs and rents have hampered the sector’s growth this year, that’s likely to be outweighed by continued population gains. The Partnership’s forecast calls for a net gain of 2,800 jobs in restaurants and bars next year, the sixth largest increase among major sectors.

The hotel industry along with food and beverage services make up the hospitality side of the leisure and hospitality sector. At 28,200 workers, the sector is one of the smaller employers in the region, but generates significant revenue for major tourism drivers such as the visual and performing arts through hotel occupancy taxes. While the pipeline of new hotels expected to open in the next year is narrow, anticipated visitation growth tied to global events such as FIFA World Cup has the Partnership expecting 900 new jobs in sector in the year ahead.

The arts, entertainment, and recreation sector, which represents the leisure side of leisure and hospitality, includes such organizations as museums, golf courses, theaters, and attractions. The sector is highly dependent on consumer confidence since folks are more apt to splurge on optional things like theater tickets or a sporting event if they’re optimistic about their financial situation. It’s also aided by visitor growth and the spending habits of those visitors. The Partnership forecasts modest growth in this sector of 1,600 jobs in 2025.

See the full employment forecast from the Partnership.

Written by A.J. Mistretta