Economic Outlook Conference data shows job 'pause' in The Woodlands area in 2026

While The Woodlands area is going into 2026 with an overall 2% decline in employees among major nonretail employers, experts at the 2026 Economic Outlook Conference said the region's top employer, health care, is poised for further growth.

The 2026 Economic Outlook Conference was presented Feb. 6 by The Woodlands Area Chamber of Commerce and presenting sponsor Entergy.

Jevon Gibb, CEO of The Woodlands Area Economic Development Partnership, described the area as being in a "pause," but noted it is poised for long-term growth.

"We see health care as our largest growth source," Gibb said. "This makes sense with 45% population growth over the last 10 years, more people need more doctors. We see a growth rate somewhat slower within education."

"This is driven by two major things," Gibb said of the decline in employees locally. "One, the national economy, ... [and] the second is a combination of interest rates and real estate in The Woodlands area."

However, Gibb said the area has enough commercial land available to add 4 million square feet of additional office and commercial space, or 15,000 to 20,000 jobs, in the future.

"Right now, because interest rates are high and uncertainty is there, businesses are sitting on the sidelines," he said.

Several new businesses will be announced for The Woodlands area this year, Gibb said, noting that the EDP will announce a European manufacturer coming to The Woodlands as well as five smaller companies.

"Those are the things that are being talked about at our meetings and business after hours," Cox said of the current employment trends. " ... I think folks remain optimistic, but cautiously optimistic."

The breakdown

The EDP report shows 33% growth over 10 years, while there was a slight dip since 2025, with 41,103 employers in last year’s report and 40,358 in this year’s report.

Gibb said The Woodlands area also continues to have a strong showing in the commercial and office real estate markets.

"The commercial and office market has been relatively slow, but The Woodlands continues to outperform," he said. "Our vacancy rates are really low, 12% to 14%, depending on whose numbers you use. That's significantly less than downtown Houston ... the central business district or CBD, is at about 26% vacancy."

Other speakers at the event included Jesse B. Thompson, senior business economist for the Federal Reserve Bank of Dallas, and keynote speaker Ron Insana, who discussed wider economic trends and pressures.

Bailey said in the past, The Woodlands lost several major employers due to acquisition, such as Anadarko, which had been located in the two iconic towers in The Woodlands acquired by Howard Hughes in 2019.

Bailey discussed the unique nature of The Woodlands' model of government, which derives 72% of its revenue—projected to be $175.1 million in 2026—from sales tax, hotel tax, mixed-beverage tax and program revenues, and 28% from property tax revenue. This means the owner of a home assessed at $500,000, who would have a $7,487 tax bill in Montgomery County, pays 11% of that, or $831, to The Woodlands Township.

He said because so much of the township's revenue is tied to business in the area, it is important to continue to cultivate those relationships.

"We need to make sure we’re always working in tandem to find companies that are big enough to not get acquired, and attract them to The Woodlands," Bailey said. "Anadarko was a huge part of our local economy. We need to learn from that and make sure we are constantly trying to recruit those businesses."

Thompson said during another segment of the conference that he projects the Houston area overall can expect about 1.2% job growth.

“Growth ... not a boom, but not really a recession either,” Thompson said.