The city of Houston was the top job creator among U.S. cities in the first half of 2013, according to data from the U.S. Bureau of Labor Statistics. The Greater Houston Partnership has also reported that, among major U.S. cities, Houston has seen the best recovery from the 2008 recession by a wide margin.
Not only has Houston regained the jobs lost in the recession, it has added more than two jobs for every job lost, said Patrick Jankowski, vice president of research at the Greater Houston Partnership.
"The recession didn't hit us as bad as some other cities, but our recovery has been unmatched," he said. "Part of that was due to not being hit as hard, but part of it was due to the oil and gas industry really taking off."
From April 2012–13, the Houston-Sugar Land-Baytown Metro Area led the state in job growth, adding 112,000 new jobs, according to estimates from the Texas Workforce Commission. While energy has led the charge since January 2010, every sector of Houston's economy experienced job growth in the past year.
The growth in manufacturing supports growth in other areas, Jankowski said. Jobs related to information technology and engineering are on the upswing.
"Houston owes much of its good fortune to the energy industry," Jankowski said. "Each exploration job in Houston supports another seven jobs elsewhere in the region. Each job in oilfield services supports another 11 in the region."
The report found that, since the lowest point of the recession, about one in five new jobs created has fallen in either one of three upstream energy sectors—exploration and production, oil field services, and equipment manufacturing—or another engineering or energy related sector.
The health care industry continues to be a major source of jobs in the greater Houston area as well, with physical and occupational therapists ranking second on a Workforce Commission list of Houston's most in demand jobs. Registered nurses and health care technicians also made the list, and health aides and medical assistants were not far off.
"Health care has always been a strength of the Houston area," Jankowski said. "With the way population has grown, it is no surprise that demand for medical professionals continues to rise. We do not expect that growth to slow down any time soon."
Reports from career-oriented websites like indeed.com show a growing demand for service industry jobs in Houston as well. The actual employment listing for May 2013 include more than 154,000 jobs available in the Houston area, double the 73,000 jobs available in May 2012.
Educators respond
Estimates from the Brookings Institution— a private nonprofit organization devoted to independent research and innovative policy solutions—suggest that more than 40 percent of workers in Houston's energy and health care sectors have a bachelor's degree or higher. Only around 24 percent or workers in the manufacturing sector have a bachelor's degree or higher, but suggested college education will be more important in these sectors in the future.
Jankowski said GHP is planning to conduct workforce needs assessment and skills assessment studies to identify which skill sets are going to be most in need in Houston's job market moving forward. He said he has noticed an increased dialogue between the business communities and academic communities in Houston.
"This is something we need to see happen as we make sure we're training students for the jobs that are going to be out there," Jankowski said.
The Lone Star College System have recognized the importance of providing students with the opportunity to be competitive in a Houston job market where oil and gas workers are in demand. LSCS—a system of community colleges throughout Houston—started construction on $20 million energy institute, which is expected to open January 2014.
"The demand for skilled, qualified, competent technicians is high," said John Galiotos, dean of the LSCS Energy & Manufacturing Institute. "We are a leader in meeting the energy and manufacturing workforce needs."
The institute will emphasize hands-on training as LSCS endeavors to help fill the talent gap in oil and gas fields. Graduates will complete the program with the skills needed to immediately enter the workforce, said Ed Bunton, director of oil and gas programs for LSCS. Programs are being designed through a collaborative effort with area oil and gas companies.