Specific sectors of Houston’s broader leisure and hospitality industry are anticipated to see job gains in the year ahead thanks in part to increases in leisure and business travel as well as regional population gains, according to a new report from the Greater Houston Partnership.
The big picture: The Partnership’s annual employment forecast projects Houston metro employment growth of more than 71,000 jobs in 2025, with the healthcare, construction and professional services sectors leading the gains. That forecast is on the robust side of the region’s average annual job growth and indicative of a confident outlook for the U.S. economy along with other factors affecting Houston’s performance.
The Partnership’s Chief Economist Patrick Jankowski said he does not foresee a recession in the coming year and is confident in a strong economy at both the local and national level, barring any significant, unforeseen circumstances.
Inside the numbers: With more than 300,000, the food services and drinking establishments sector is the third largest employer in the region. Heavily tied to population growth and the trajectory of housing, the industry consistently delivers net employment gains each year. Metro Houston has more than 13,000 restaurants, cafes and bars, adding more than 200 new establishments annually. While consumers generally have been looking at ways to cut costs such as taking advantage of specials and choosing less pricey menu items—they aren’t forsaking dining out. The Partnership’s forecast calls for a net gain of 5,200 jobs in the industry next year, the fifth 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 27,100 workers, the sector is one of the smaller employers in the region. However, the Partnership points out that the hotel industry generates significant revenue for major tourism drivers such as the visual and performing arts through hotel occupancy taxes. Thanks to increases in leisure travel and continued growth in convention and business travel, the Partnership expects another 600 jobs in hotels 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 unnecessary things like theater tickets or a sporting event if they’re optimistic about their financial situation. The Partnership forecasts modest growth in this sector of 1,800 jobs in 2025.
See the full employment forecast from the Partnership.
Written by A.J. Mistretta
