Houston Economic Update June 2011

8/6/2019 Houston Economic Update June 2011

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June 2011 2011, Greater Houston Partnership

A publication of the Greater Houston Partnership Volume 20, Number 6June 2011

Houston Fared Better Than Most Houston weathered the recession better than mostmetro areas. The downturn here was short and shallow and the region began recouping its

job losses sooner than most. Houston has now recovered more than two-thirds of the jobs itlost in the recession. Of the nations 20 most populous metros, only Washington, D.C. isfurther along in the recovery1.

Houston fared better for a variety of reasons:

Real estate developers did not repeat their mistakes of the 80s, The oil and gas industry recognized the need to hold on to its talent and avoided layoffs

as much as possible, Houston did not experience a housing bubble like other metro areas so home values did

not collapse, and Houstons global focus helped offset weak U.S. demand for goods and services produced

in Houston.

There are probably other reasons why Houston fared better than most and readers are invited

to share their insights by emailing them to [email protected]. Those insights will bethe subject of a future blog2 post, but this article focuses exclusively on the reasonsmentioned above.

Putting Brakes on Early This Time

During the 80s, Houston suffered one of the worst regional recessions in U.S. history. From82 to early 87, the metro area lost 221,900 jobs, one in every seven in the region. Thoughthe economy first showed signs of weakness in early 82, the real estate community wasslow to recognize the signals. Developers kept building homes and adding office space even

though demand had plummeted. In 82, the region lost 91,100 jobs; developers built 31,800homes. In 83, the region lost 29,600 jobs; developers built 33,300 homes. There was a briefuptick in employment in 84, but job losses returned in 85. The region lost 22,800 jobs that

1 For more details on how Houston outperformed other metros during the recession, see the May 11 issue ofThe Houston Economy ata Glance.

2 More detailed information about the regional economy, including a weekly blog offering insight into recent trends, is available at theHouston Economic Research section of the GHP websitesMembers Only section. To log into that section, clickhere.
http://www.houston.org/GHP_Secure/LogIn/index.asp?edit=0&act=mbrshttp://www.houston.org/GHP_Secure/LogIn/index.asp?edit=0&act=mbrshttp://www.houston.org/GHP_Secure/LogIn/index.asp?edit=0&act=mbrshttp://www.houston.org/GHP_Secure/LogIn/index.asp?edit=0&act=mbrshttp://www.houston.org/GHP_Secure/LogIn/index.asp?edit=0&act=mbrs


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HOUSTONTHE ECONOMY AT A GLANCE


year; developers built 9,370 homes. By the time the recession was over, developers built102,230 single-family homes, many on spec, (i.e., for which no buyer had signed acontract before construction began). It was no different with apartments. Developers put up85,530 additional units during the recession of the 80s. The math didnt add upwhileemployers were busy cutting 221,900 jobs, the real estate community was busy adding

187,760 housing units.

While homebuilders createda housing glut, commercialdevelopers created an officeglut. In 83 alone, 155 officebuildings went up. Again,the math did not add up.According toHoustonFacts

3, the region added 71.0

million square feet of officespace between 82 and 87,all the while employers wereslashing payrolls. Some ofthese office buildingsremained vacant for years.

Some of them brought about the demise of the developer and the lender. Many ended up inthe hands of the Resolution Trust Corporation.

The real estate community recognized the signals earlier this time. In 09 and 10 developersbuilt only 44,439 homes and 10,119 apartments54,556 total housing units. Most of thehomes were built under contract, (i.e., they had a firm buyer before they startedconstruction.) On the office side, developers built only 15 million square feet of space duringthe recession, much of it preleased before construction began. Builders had help from thefinancial community in reading the signals. During the recession, office construction loanswere nonexistent and tighter lending standards curtailed home construction. As a result,Houston was not overbuilt and local housing and office markets weathered the recessionbetter than most other metros.

Energy Industry Exercises Restraint

In 73, the Arab Oil Embargo quadrupled oil prices in 90 days. The price hike set off adomestic drilling boom. Energy companies relocated to Houston, workers flocked here tofind jobs, and the oilfield equipment manufacturers ran extra shifts to meet demand.

3Houston Facts, an annual publication of GHP and its predecessor, the Greater Houston Chamber of Commerce, has been publishedannually for more than 60 years and has a history going back nearly 100 years.

YearJobs Lost or

Gained

Metro Houston Housing Starts

Single-Family Multi-Family

82 -99,120 31,180 35,170

83 -29,500 33,300 29,980

84 54,170 20,070 14,660

85 -22,800 9,370 4,610

86 -97,700 8,310 1,110

Total* -194,950 102,230 85,530

* Job Losses in the text and job losses in the table do not equal because thetext represents peak-to-trough loss and the table represents annual losses.

Sources: Texas Employment Commission, CDS Market Research


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University of Houstons Institute for Regional Forecasting estimates that in 81 half of alljobs in Houstons economic basethose sectors of the economy that exported goods andservices outside the regionwere tied to upstream energy. Another quarter was tied todownstream energy4. As those sectors grew, so did the secondary sectorsretail, healthcare,restaurants, personal services and the like. Growth in the base has a multiplier effect. One

job in the base supports several jobs in the secondary sectors.

But the collapse in oil prices in 82lead to a collapse in drilling activity.Layoffs soon followed. According tothe U.S. Census Bureaus County

Business Patterns, employment inmining (i.e., energy exploration) andoilfield equipment manufacturing fellby 72,275 jobs, 56.6 percent, between

March 82 and March 87. Therewere significant layoffs in pipelinetransportation, wholesaling,engineering and other energy-related sectors as well. The multiplier effect works in reverseas well. Layoffs in energy led to even harsher layoffs in the secondary sectors. By the timeHoustons economy hit bottom in January 87, the region had 221,900 fewer jobs than it hadfive years earlier.

The energy industry exercised greater restraint this time. From the employment peak in Oct08 to the trough in Jan 10, the energy industry cut just 15,100 jobs, a loss of 16.3 percent.Fewer losses in the economic base translated into fewer losses in the secondary sector. Theregion lost one in 22 jobs this recession versus one in seven jobs during the recession of the80s.

Why the restraint? The industry has an aging workforce, a byproduct of the 80s layoffs andthe 90s weak hiring. According to the US Department of Labor, the average age of workersin the energy industry is now over 50, and the industry estimates that up to half of its currentworkforce will retire within five to 10 yearsmore than 500,000 workers. Only in the lastdecade did hiring pick up. An age profile of the industrys workforce looks like an inverted

bell curve, with younger workers on one end, older workers on the other, but not manymiddle-aged workers in the middle. This put the energy companies in a dilemma. During therecession, if the older workers took early retirement, who would remain behind to train theyounger workers? If the younger workers left, who would run the company when the older

4 Upstream energy includes oil and gas exploration and production, oilfield equipment manufacturing and wholesaling, and pipelinetransportation. Downstream includes refining and chemicals manufacturing.

Energy Job Losses, 82 87

Year Mining*Oilfield

EquipmentManufacturing

82 84,245 45,105

83 46,336 10,739

Losses -37,909 -34,366

Total Losses -72,275* In Houston, the bulk of mining employment is oil exploration.Source: U.S.CensusBureau,CountyBusinessPatterns'82and'87


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workers retire? The dilemma helped to moderate energy industry job losses and thus lossesin the secondary sector which translated into fewer job losses overall.

What, no bubble?

Unlike other regions, Houston never had a housing bubble. Since Houston had no bubble,the region didnt experience the collapse in housing values that destroyed many othermetros. True, Houston had its share of failed subprime mortgages which dumped thousandsof foreclosures on the market depressing home values. But home values never collapsed likeelsewhere. Housing has always been affordable here for a number of reasons: an abundanceof developable land, ease of the permitting process, a lack of zoning, the ease of setting upmunicipal utility districts, and low materials and labor costs to name a few. Houstons lowhousing costs have kept housing priced as shelter and not as a speculative investment.Without the speculation, there was no bubble in Houston. Metros with large bubbles prior tothe recession suffered some of the greatest jobs losses during the recession.

How to determine whether there is a bubble?Use a simple ratiothe value of a median-priced home divided by the medianhousehold income in that area. In laymansterms, the years of typical family incomerequired to purchase the typical familyhome. The greater the ratio, the larger thebubble.

At the start of the previous decade the home-price-to-income ratio was 2.5 or less formost major metro areas. By the middle of thedecade the ratio had grown substantiallyacross the U.S. In Miami, the ratio rose from2.7 in Q1/01 to 5.5 in Q1/06. In Phoenix, theratio rose from 2.6 to 4.2; in Riverside, theratio jumped from 3.1 to 6.7. In Houston,however, the increase was minimal, risingfrom 2.3 in Q1/01 to 2.7 in Q1/06.

The bigger the bubble, the greater was thecollapse during the recession. Housingvalues fell 39.9 percent in Miami, 48.1percent in Phoenix, and 44.0 percent inRiverside, but less than 2.0 percent inHouston. Meanwhile, job losses, measured as a percent of the total payroll employment were

Housing Affordability Index*

Years of Income to Buy a Home

Metro Area Q1/01 Q1/06

Houston 2.3 2.8

Atlanta 2.3 2.6

Baltimore 2.1 3.4

Boston 3.3 4.6

Chicago 2.6 3.3

Dallas 2.5 2.7

Detroit 2.2 1.7Los Angeles 3.9 8.9

Miami 2.7 5.5

Minneapolis 2.1 2.9

New York 3.1 8.0

Philadelphia 2.0 3.6

Phoenix 2.6 4.2

Riverside 3.1 6.7

San Diego 4.5 7.6

San Francisco 6.9 8.2

Seattle 3.0 3.6

St. Louis 2.0 1.7Tampa 2.2 3.6

Washington 2.1 4.8* Median-priced home divided by median household income ineach metro area.Source: GHP calculations based on U.S. Census and FederalHome Finance Association data


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Miami, 10.2 percent; Phoenix, 12.8 percent; Riverside, 13.5 percent; but in Houston, 4.6percent. Houstons lack of a bubble helped prevent the local housing market from crashingand taking the economy with it.

An International Focus

While the United States economy shrank during therecession, the economies of many other nations,especially in the developing world, continued to grow.Tonnage through the Houston-Galveston CustomsDistrict fell 4.4 percent in 09 but quickly recovered in10, much of it geared toward the developing world.Eighteen of Houstons top 25 trading partnersrepresenting 62.4 percent of all trade through the regionhave economies growing faster than the United States,

and these nations continue to purchase goods andservices from Houston-based companies.

Houston also continued to attract foreign investmentduring the recession. According to GHPsNew Business

Announcements database, more than 100 foreign-owned companies relocated, expanded orstarted new businesses in Houston between 08 through 10. These companies voted withtheir balance sheets and decided that having an office, plant or distribution center in Houston

is important to their future growthand itsimportant to Houstons as well.

Houston fared better than most metro areas fora variety of reasons. Real estate developers didnot overbuild prior to the recession andrecognized the signals to stop building early on.The energy industry held onto its talent knowingit would need those skilled workers again oncethe economy improved. Houston did notexperience a housing bubble, so it did not endurea housing bust and the economic decline

associated with it. Houstons international focusoffset weak demand in the U.S. economy andattracted new foreign investment as well. Forthose reasons, and undoubtedly more that timenor space are available to elaborate on, Houston

proved to be one of the best metro areas to ride out the Great Recession.

Houston Trading Partners With

Economies Expanding Faster Thanthe United States

Algeria Iraq

Angola Korea

Brazil Kuwait

Chile Mexico

China Nigeria

Colombia Russia

Costa Rica Saudi Arabia

Ecuador Singapore

India Venezuela

SOURCE: Trade data, U.S. CensusBureau; growth projections, TheConference Board

Selected Foreign Companies That Have

Expanded, Relocated or Set Up HoustonOperations in the Last Three Years

ABB Mustang Engineering

BHP Billiton Rolls Royce

Cemex Schlumberger

Det Norske Veritas Siemens

Ensco Offshore Svenska Kullagerfabriken

FoxConn Technip

GDF Suez Toshiba

Hagemeyer Vallourec & MannesmanKuraray Vestas Wind Systems

Master Flo Valve Worley Parsons

SOURCE: GHP New Business AnnouncementsDatabase


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International Air Traffic Grows The Houston Airport System (HAS) served 3,916,507passengers in April, down 1.4 percent from the 3,972,022 served in April last year. Thedecline is attributed to the 5.5 percent decrease in domestic travel at Intercontinental Airport(IAH). On the whole, domestic passenger traffic through HAS dropped 3.0 percent, from3,316,921 in April 10 to 3,216,051 in April this year. While domestic travel declined,

international passenger traffic continued to grow at 6.9 percent, from 655,101 passengers inApril 10 to 700,456 in April this year. Air carriers hope the upcoming summer break willincrease passenger traffic during the peak travel season.

Although passenger traffic declined, air freight increased by 12.8 percent, from 71.0 millionshort tons in April 10 to 80.1 in April 11. Cargo volume grew in both domestic andinternational markets for IAH as well as domestic for Hobby.

In preparation for future growth in ridership and air freight, HAS and United ContinentalHoldings, Inc. unveiled a $1 billion redevelopment project to begin at IAH by the end of 11.The first phase of the project includes the creation of a new Terminal B south concourse.

Additionally, United announced its extension of its lease on Terminal C to 2027.

"This project and the extension of our Terminal C lease to 2027 clearly demonstrate United'scommitment to Houston and will help Houston maintain its status as an international city,"said Jeff Smisek, United's president and CEO. "Houston is United's largest hub, and ourinvestment will open opportunities for additional growth."

United operates approximately 630 daily flights out of IAH, while 607 fly out of OHare inChicago home of Uniteds headquarters. This number is predicted to increase in thefollowing years after the $1 billion expansion project is completed.

"Together, we serve millions of customers at an important international gateway and byinvesting in our infrastructure, we are ensuring that we may serve even more globalpassengers for many more years," said Mario Diaz, Houston Airport System Director ofAviation.

Foreign Trade Increases The Houston-Galveston Customs District recorded tradevalued at $60.7 billion for the first quarter of 11, up 27.0 percent from $47.8 billionduring the same period last year. In addition to the growth in the dollar value of trade,the movement of commodities increased by 8.5 percent from 68.1 million short tons inQ1/10 to 73.9 short tons in Q1/11.

Exports totaled $27.3 billion, up 28.1 percent from last year. Houstons five leadingexports for the first quarter were:

Mineral fuel and oil ($8.6 billion)

Industrial machinery ($4.0 billion)

Organic chemicals ($3.9 billion)


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Plastics ($1.9 billion)

Cereals ($1.4 billion)

Imports totaled $33.3 billion, up 26.1 percent from 10. The five leading importsduring the first quarter were:

Mineral fuel and oil ($21.8 billion)

Industrial machinery ($2.4 billion)

Iron and steel ($1.7 billion)

Electric machinery ($1.3 billion)

Organic chemicals ($1.1 billion)

Houstons top five trade partners for the first three months of 11 remained the sameas the year earlier: Mexico ($7.4 billion), Venezuela ($4.4 billion), Brazil ($3.6billion), Nigeria ($2.7 billion), and China ($2.6 billion). Among these countries,Mexico led the growth in total tonnage with an increase of 25.4 percent and Brazilwas responsible for the greatest increase in trade value with growth of 54.7 percentfrom Q1/10 to Q1/11.

Production Expected to Continue Recovery in Q3/11 - The Houston PurchasingManagers Index (PMI), a short-term indicator for regional production, rose to 59.9 inApril, up from 58.1 in April 10. The reading represents the 19th consecutive monththe PMI has stood above 50, according to the Institute for Supply Management-

Houston.

The PMI is a short-term leading indicator for regional production. Readings above theneutral point of 50 indicate likely growth in production over the next three to fourmonths; readings below 50 suggest contraction. Aprils 59.9 is the highest readingsince June 08, and represents a vast improvement from the record low of 39.0 inMarch 09.

Nonresidential electricity consumption, a rough proxy for industrial production,supports the recent PMI readings. The 12-month nonresidential electricity salesrunning total has been slowly trending up, since bottoming out in September 09. The

amount of electricity sold to nonresidential customers in the CenterPoint service areain April 11 was 1.9 percent above April 10 and 11.2 percent above April 09 sales.

The Houston PMI is based on eight components: sales, production, employment,purchases, prices paid, lead-times, purchased inventory, and finished goods. In April,the lead-times component rose to 33, the highest reading since July 08. Lead-time isthe time between when a customer places an order and when the order is filled.


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Regardless of whether the respondent is referring to the time it takes to receive anorder or the time it takes to fill an order, an increase in lead time means an increase indemand. The employment, production and purchases components showed no changefrom last month.

Retail Sales Rise - Retail sales in the 10-county Houston metropolitan area totaled$27.6 billion in Q4/10, up 2.5 percent from Q4/09, according to the latest tally by theTexas State Comptrollers Office.

Nine of the 12 retail categories posted over-the-year gains in Q4. Motor vehicle salesrose 12.4 percent to $4.6 million; general merchandise stores saw sales increase 10.0percent to $5.5 billion; and food and beverage sales rose 5.6 percent to $3.3 billion.Electronics and appliance sales dropped 1.3 percent to $1.0 billion, and buildingmaterial sales declined 1.3 percent to $1.3 billion.

Patrick Jankowski, Marycruz Garca andJenny Hsu contributed to this issue of

The Economy at a Glance.

____________________________________

The Greater Houston Partnership is the primary advocate of Houstons business community

and is dedicated to building regional economic prosperity.

Visit the Greater Houston Partnership on the World Wide Web at www.houston.org.Contact us by phone at 713-844-3600.


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Houston Economic Indicators

A Service of the Greater Houston Partnership

Most Year % Most Year %

Month Recent Earlier Change Recent Earlier Change

ENERGY

U.S. Active Rotary Rigs Apr '11 1,790 1,479 21.0 1,663 * 1,131 * 47.0

Spot Crude Oil Price ($/bbl, West Texas Intermediate) Apr '11 110.82 84.50 31.1 98.55 * 79.89 * 23.4Spot Natural Gas ($/MMBtu, Henry Hub) Apr '11 4.28 3.94 8.7 4.17 * 4.74 * -12.1

UTILITIES AND PRODUCTION

Houston Purchasing Managers Index Apr '11 59.9 58.1 3.1 56.6 * 50.0 * 13.2

Nonresidential Electric Current Sales (Mwh, CNP Service Area) Apr '11 4,086,218 4,009,797 1.9 15,703,792 15,394,679 2.0

CONSTRUCTION

Total Building Contracts ($, Houston MSA) Apr '11 710,717,000 879,044,000 -19.1 2,673,862,000 2,937,696,000 -9.0

Nonresidential Apr '11 265,088,000 373,391,000 -29.0 1,059,298,000 1,024,087,000 3.4

Residential Apr '11 445,629,000 505,653,000 -11.9 1,614,564,000 1,913,609,000 -15.6

Building Permits ($, City of Houston) Apr '11 308,687,279 292,516,073 5.5 996,147,609 994,708,781 0.1

Nonresidential Apr '11 196,980,815 186,202,144 5.8 654,167,304 624,409,507 4.8

New Nonresidential Apr '11 25,490,805 69,578,711 -63.4 180,469,089 241,602,011 -25.3

Nonresidential Additions/Alterations/Conversions Apr '11 171,490,010 116,623,433 47.0 473,698,215 382,807,496 23.7

Residential Apr '11 111,706,464 106,313,929 5.1 341,980,305 370,299,274 -7.6

New Residential Apr '11 95,653,439 84,110,357 13.7 278,219,310 285,055,228 -2.4

Residential Additions/Alterations/Conversions Apr '11 16,053,025 22,203,572 -27.7 63,760,995 85,244,046 -25.2

Multiple Listing Service (MLS) ActivityClosings Apr '11 5,534 6,288 -12.0 18,370 19,129 -4.0

Median Sales Price - SF Detached Apr '11 148,000 151,260 -2.2 146,988 * 148,630 * -1.1

Active Listings Apr '11 51,694 48,869 5.8 50,151 * 46,966 * 6.8

EMPLOYMENT (Houston-Sugar Land-Baytown MSA)

Nonfarm Payroll Employment Apr '11 2,572,700 2,521,600 2.0 2,551,500 * 2,498,900 * 2.1

Goods Producing (Natural Resources/Mining/Const/Mfg) Apr '11 478,100 465,900 2.6 477,200 * 464,800 * 2.7

Service Providing Apr '11 2,094,600 2,055,700 1.9 2,074,300 * 2,034,100 * 2.0

Unemployment Rate (%) - Not Seasonally Adjusted

Houston-Sugar Land-Baytown MSA Apr '11 8.0 8.2 8.4 * 8.6 *

Texas Apr '11 7.7 7.9 8.1 * 8.3 *

U.S. Apr '11 8.7 9.5 9.3 * 10.2 *

Unemployment Insurance Claims (Gulf Coast WDA)

Initial Claims Apr '11 20,258 22,823 -11.2 19,413 * 22,517 * -13.8

Continuing Claims Apr '11 69,370 97,017 -28.5 78,170 * 112,395 * -30.5

TRANSPORTATION

Port of Houston Authority Shipments (Short Tons) Mar '11 26,375,065 25,422,604 3.7 73,901,403 68,116,089 8.5

Air Passengers (Houston Airport System) Apr '11 3,916,507 3,972,022 -1.4 15,487,472 15,406,043 0.5

Domestic Passengers Apr '11 3,216,051 3,316,921 -3.0 12,672,455 12,721,652 -0.4

International Passengers Apr '11 700,456 655,101 6.9 2,815,017 2,684,391 4.9

Landings and Takeoffs Apr '11 73,683 69,408 6.2 282,748 278,725 1.4

Air Freight (000 lb) Apr '11 80,061 70,983 12.8 304,964 278,381 9.5

Enplaned Apr '11 41,817 37,570 11.3 153,433 146,753 4.6

Deplaned Apr '11 38,244 33,413 14.5 151,531 131,628 15.1

CONSUMERS

New Car and Truck Sales (Units, Houston MSA) Apr '11 22,595 19,634 15.1 85,529 79,105 8.1

Cars Apr '11 10,353 8,946 15.7 37,457 36,337 3.1

Trucks, SUVs and Commercials Apr '11 12,242 10,688 14.5 48,072 42,768 12.4

Total Retail Sales ($000,000, Houston MSA, NAICS Basis) 4Q10 27,634 26,953 2.5 94,866 88,070 7.7

Consumer Price Index for All Urban Consumers ('82-'84=100)

Houston-Galveston-Brazoria CMSA Apr '11 201.624 194.037 3.9 196.071 * 191.986 * 2.1

United States Apr '11 224.906 218.009 3.2 219.792 * 216.186 * 1.7

Hotel Performance (Harris County)

Occupancy (%) 4Q10 53.8 51.6 51.5 * 56.2 *

Average Room Rate ($) 4Q10 90.51 91.29 -0.9 92.04 * 95.80 * -3.9

Revenue Per Available Room ($) 4Q10 48.67 47.14 3.2 51.46 * 54.05 * -4.8

POSTINGS AND FORECLOSURES

Postings (Harris County) May '11 2,973 3,492 -14.9 19,669 19,468 1.0

Foreclosures (Harris County) May '11 773 958 -19.3 4,169 5,548 -24.9

YEAR-TO-DATE

TOTAL OR AVERAGE*MONTHLY DATA


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SourcesRig Count Baker Hughes IncorporatedSpot WTI, Spot Natural Gas U.S. Energy Information AgencyHouston Purchasing Managers National Association ofIndex Purchasing Management

Houston, Inc.Electricity CenterPoint EnergyBuilding Construction Contracts McGraw-Hill ConstructionCity of Houston Building Permits Building Permit Department, City

of HoustonMLS Data Houston Association of RealtorsEmployment, Unemployment Texas Workforce Commission

Port Shipments Port of Houston AuthorityAviation Aviation Department, City of

HoustonCar and Truck Sales TexAuto Facts Report,InfoNation,

Inc., Sugar Land TXRetail Sales Texas Comptrollers OfficeConsumer Price Index U.S. Bureau of Labor StatisticsHotels PKF Consulting/Hospitality Asset

Advisors InternationalPostings, Foreclosures Foreclosure Information & Listing

Service

STAY UP TO DATE!

If you would like to receive this electronic publication on the first working day of each month, please e-mail your request for Economy at a Glanceto [email protected]. Include your name, title and phone

number and your companys name and address. Archivedcopies are available to Partnership Membersin the Members Only section at www.houston.org. For information about joining the Greater HoustonPartnership and gaining access to this powerful resource, call Member Services at 713-844-3683.

The foregoing table is updated whenever any data change typically, 11 or so times per month. Ifyou would like to receive those updates by e-mail, usually accompanied by commentary, please e-maiyour request for Key Economic Indicators to [email protected] with the same identifying infor-mation.

You may request Glanceand Indicatorsin the same e-mail.


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HOUSTON MSA NONFARM PAYROLL EMPLOYMENT (000)Change from % Change from

Apr ' 11 Mar '11 Apr'10 Mar '11 Apr'10 Mar '11 Apr'10

Total Nonfarm Payroll Jobs 2,572.7 2,559.1 2,521.6 13.6 51.1 0.5 2.0

Total Private 2,184.3 2,171.3 2,135.4 13.0 48.9 0.6 2.3

Goods Producing 478.1 479.6 465.9 -1.5 12.2 -0.3 2.6

Service Providing 2,094.6 2,079.5 2,055.7 15.1 38.9 0.7 1.9

Private Service Providing 1,706.2 1,691.7 1,669.5 14.5 36.7 0.9 2.2

Mining and Logging 86.4 85.4 79.0 1.0 7.4 1.2 9.4

Oil & Gas Extraction 47.5 47.2 45.3 0.3 2.2 0.6 4.9

Support Activities for Mining 37.4 36.9 32.6 0.5 4.8 1.4 14.7

Construction 169.5 173.2 170.9 -3.7 -1.4 -2.1 -0.8

Manufacturing 222.2 221.0 216.0 1.2 6.2 0.5 2.9

Durable Goods Manufacturing 143.8 144.9 138.1 -1.1 5.7 -0.8 4.1

Nondurable Goods Manufacturing 78.4 76.1 77.9 2.3 0.5 3.0 0.6

Wholesale Trade 134.0 131.6 130.1 2.4 3.9 1.8 3.0

Retail Trade 266.9 266.2 258.6 0.7 8.3 0.3 3.2

Transportation, Warehousing and Utilities 121.0 121.7 121.4 -0.7 -0.4 -0.6 -0.3

Utilities 16.3 16.3 16.0 0.0 0.3 0.0 1.9Air Transportation 23.8 23.8 24.3 0.0 -0.5 0.0 -2.1

Truck Transportation 20.7 20.6 19.7 0.1 1.0 0.5 5.1

Pipeline Transportation 10.3 10.2 10.1 0.1 0.2 1.0 2.0

Balance, incl Warehousing, Water & Rail Transport 49.9 50.8 51.3 -0.9 -1.4 -1.8 -2.7

Information 29.8 30.1 32.1 -0.3 -2.3 -1.0 -7.2

Telecommunications 15.2 15.4 16.4 -0.2 -1.2 -1.3 -7.3

Finance & Insurance 87.1 86.8 86.7 0.3 0.4 0.3 0.5

Real Estate & Rental and Leasing 47.2 47.1 48.7 0.1 -1.5 0.2 -3.1

Professional & Business Services 369.1 365.6 358.3 3.5 10.8 1.0 3.0

Professional, Scientific & Technical Services 178.0 177.0 176.1 1.0 1.9 0.6 1.1Legal Services 22.7 22.6 22.9 0.1 -0.2 0.4 -0.9

Accounting, Tax Preparation, Bookkeeping 18.4 18.9 19.5 -0.5 -1.1 -2.6 -5.6Architectural, Engineering & Related Services 57.9 57.4 58.2 0.5 -0.3 0.9 -0.5

Computer Systems Design & Related Services 25.5 25.4 24.4 0.1 1.1 0.4 4.5

Admin & Support/Waste Mgt & Remediation 170.7 167.7 162.9 3.0 7.8 1.8 4.8Administrative & Support Services 162.3 159.2 155.2 3.1 7.1 1.9 4.6

Employment Services 59.1 59.1 55.0 0.0 4.1 0.0 7.5

Educational Services 43.8 43.3 42.5 0.5 1.3 1.2 3.1

Health Care & Social Assistance 272.2 270.5 264.8 1.7 7.4 0.6 2.8

Arts, Entertainment & Recreation 26.6 26.0 27.2 0.6 -0.6 2.3 -2.2

Accommodation & Food Services 214.2 210.2 208.2 4.0 6.0 1.9 2.9

Other Services 94.3 92.6 90.9 1.7 3.4 1.8 3.7

Government 388.4 387.8 386.2 0.6 2.2 0.2 0.6

Federal Government 27.7 27.7 30.3 0.0 -2.6 0.0 -8.6State Government 73.0 72.6 72.2 0.4 0.8 0.6 1.1State Government Educational Services 39.0 38.7 38.6 0.3 0.4 0.8 1.0

Local Government 287.7 287.5 283.7 0.2 4.0 0.1 1.4Local Government Educational Services 200.5 200.4 198.5 0.1 2.0 0.0 1.0

SOURCE: Texas Workforce Commission


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Source: Institute for Supply Management-Houston

Source: Texas Workforce Commission

30

35

40

45

50

55

60

65

70

Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

PURCHASING MANAGERS INDEXHOUSTON & U.S. 2002-2012

HOUSTON U.S.

-120

-100

-80

-60

-40

-20

0

20

40

60

80

100

120

140

160

1.95

2.00

2.05

2.10

2.15

2.20

2.25

2.30

2.35

2.40

2.45

2.50

2.55

2.60

2.65


12-MONTHCHANGE(000)

NONFAR

M

PAYROLLEMPLOYMENT(000,000)

HOUSTON MSA EMPLOYMENT2002-2012

12-MONTH CHANGE JOBS


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1.60

1.65

1.70

1.75

1.80

1.85

1.90

1.95

2.00

2.05

2.10

2.15

2.20

2.25

430

440

450

460

470

480

490

500

510

520

530

540

550


SERVICE-PROVIDING

(000,000)

GOODS-PRODUCING

(000)

GOODS-PRODUCING AND SERVICE-PROVIDING EMPLOYMENTHOUSTON MSA 2002-2012

GOODS-PRODUCING JOBS SERVICE-PROVIDING JOBS

0

1

2

3

4

5

6

7

8

9

10

11

Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11

PERCENTOFLABORFORCE

UNEMPLOYMENT RATEHOUSTON & U.S. 2002-2012

HOUSTON U.S.


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Source:U.S. Energy Information Administration

Source: U.S. Bureau of Labor Statistics

0

4

8

12

16

20

24

28

0

20

40

60

80

100

120

140


H

ENRYHUBNATURALGAS($/MMBTU)

WESTTEXASINTERMEDIATE($/BBL)

SPOT MARKET ENERGY PRICES2002 - 2012

WTI MONTHLY WTI 12-MO AVG GAS MONTHLY GAS 12-MO AVG

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%


INFLATION: 12-MONTH CHANGE2002-2012

HOUSTON CPI-U U.S. CPI-U

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Houston Economic Update June 2011

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