Page 14 - NBIZ Magazine April 2022

Economic Indicators
Unemployment Rate
3.6
7.6
4.8
-6.5
1.7
5.1
Job Growth - annual % change in employment
WTI Spot Price
$47.02
$59.88
$71.71
$2.59
Henry Hub Natural Gas Spot Price
$2.22
$3.76
Houston MSA GDP YE 2019 YE 2020 YE 2021
$488.2B
$509.3B
N/A
10-Yr Treasury Rate 2.14% 0.89% 1.45%
moving south to north,
from the Gulf of Mexico
ports into the interior of the Population
country and then east/west
vs. what had been a heavy 8.5
reliance on west to east Millions 8.0
from the California ports. 7.5
We believe that this trend
will accelerate based on the 7.0
distribution centers under 6.5
construction or planned 6.0
in the country’s central re- 5.5
gions, including Texas, that
are served by several north/ 5.0 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026
south rail lines and more
port options around the
Gulf of Mexico. This trend
bodes well for industrial Jobs
demand near the ports and
in the country’s center.
The Houston market is Jobs Gained Jobs Lost Forecast
projected to have fully re- 200,000 Shale Gas & Oil Boom COVID-19 Recovery
covered all jobs lost during 150,000 106,900 117,500 116,700 151,800
the Covid recession by 100,000 91,000 82,900 54,200 82,700 62,200 75,500
the end of 2022, and real 50,000 50,500 90,000
estate activity supports 0 21,500 -2,500 -2,400
that assumption. 2021 saw -50,000
record absorption in indus- -100,000 Energy Downturn
-110,500
trial, multi-family and sin- -150,000 The Great Recession
gle-family product. Retail
returned to strong occupan- -200,000 COVID-19 Pandemic -206,600
cy with muted new develop- -250,000
ment and is expected to see
slow increases in new proj-
ect development this year.
The office market continued
to lag as the work-from-home alternative is still an open Hospitality (8.5%). Looking ahead, Houston’s job growth
question for many. However, we have seen an increase in is expected to increase 4.5% between 2021 and 2026.
activity in the office sector, and, especially if the oil and gas Houston is home to 24 Fortune 500 companies
companies gear up, we expect that recovery to accelerate. with another 17 on the Fortune 1000 list. A partial
We have intentionally avoided speculation on the list of Houston’s largest employers are: Chevron,
impact of the Russian invasion of Ukraine. Still, this Amazon, HEB, NASA, Phillips 66, BMC, ExxonMobil,
event is severely destabilizing and if escalation and/or Halliburton, Shell, Houston Methodist, Oxy, Sysco,
involvement of a larger theater follows, the future will Plains GP Holdings, Enterprise Products Partners, The
be challenging to predict. One hopes that cooler heads University of MD Anderson Cancer Center, Memorial
prevail and world leaders find a way to avoid what could Hermann, Walmart, Baker Hughes, Grocers Supply,
become WWIII. Kinder Morgan, Hewlett Packard Enterprise, Waste
Management, Schlumberger, CBI, and United.
Market Employment
Houston’s employment sector gained 151,800 jobs Houston’s Major Industries
annually in 2021, an increase of 5.1%. According to The Houston Ship Channel Complex and its more than
the U.S. Bureau of Labor Statistics, the unemployment 200 public and private terminals, collectively known
rate decreased from 7.6% in December 2020 to 4.8% in as the Port of Houston, is the nation’s largest port for
December 2021. Houston’s industry sectors that posted waterborne tonnage and an essential economic engine
the largest annual gains include Mining and Logging for the Houston region, the state of Texas, and the U.S.
(17.9%), Other Services (13.1%), and Leisure and The Port of Houston supports the creation of nearly

14 NBIZ ■ April 2022