Page 18 - NBIZ October 2020

Growth in employment services depends on the strength guidelines. Full recovery won’t occur until the virus is no
and speed of the recovery. Growth in services to buildings de- longer a threat to public health.
pends on how soon Houstonians return to their workplaces.
RESTAURANTS AND BARS
PROFESSIONAL, TECHNICAL & BUSINESS SERVICES Nationwide, restaurant and bar receipts fell $35.3 billion
Not knowing the duration of the pandemic, busi- (54.1 percent) from February to April. Locally, the industry
nesses acted quickly to minimize risk and conserve cash. laid off 37.2 percent of its workforce. Assuming the worst
Expansion plans were shelved, mergers put on hold, new was over, Governor Abbott eased restrictions in early May,
product launches delayed, construction projects canceled but the damage had already been done. Restaurants and
and lease negotiations strung out. bars lost more jobs than any other sector.
These changes impacted professional service firms who
provide due diligence, financial guidance, design services
and technical consulting for these mergers, expansions
and projects. Layoffs occurred, but not as profoundly as
in other industries. Job losses amounted to 3.5 percent of
February employment.
As economic activity picks up, so will employment in
professional services. The sector has already recouped
nearly half the jobs it lost early during the pandemic
and will likely be among the first to return to pre-COVID
employment levels.
This sector is unlikely to see significant job gains in the
HEALTH CARE AND SOCIAL ASSISTANCE near term. Governor Abbot has scaled back the capacity
Nearly all the health care losses occurred in outpatient at which restaurants can operate from 75 percent to 50
services and social assistance. Dental offices were partic- percent. And according to Yelp, 80 percent of all closed
ularly hard hit since some practices only saw emergency businesses in March remained shuttered in June. As with
patients and others closed entirely to avoid transmitting arts and entertainment, a full recovery won’t occur until the
the virus and conserve personal protective equipment. Gov- virus is no longer a threat.
ernor Greg Abbott’s order postponing all elective surgeries
affected employment early on. Still, the Texas Workforce HOTELS & ACCOMODATIONS
Commission’s data shows health care has recouped all the Hotel occupancy fell to the single digits during the early
jobs initially lost during the pandemic. days of the pandemic. Standard occupancy is between 60
Social assistance includes community relief services and 70 percent. Employers banned travel by their employ-
(food, housing, shelter) as well as daycare facilities. Relief ees, and consumers opted for staycations and day trips.
services saw a surge, so the remaining job losses were Some travel has resumed, mainly among leisure travelers,
likely in daycare. Though Governor Abbott allowed indi- who, unlike business travelers, spend less on hotels and
vidual facilities to remain open, thousands more across airfares. The sector will continue to struggle until corpo-
the state closed when cautious parents decided to keep rations lift travel bans. It may not recover even then as
their children home. Though the daycares need to reopen businesses realize they can accomplish as much through a
so parents can return to work, parents remain reluctant webinar as they can in face-to-face meetings. As with other
to place their children in them, so many remain closed or sectors, a full recovery won’t occur until the virus is no
operate at reduced capacity. longer a threat to public health.

ARTS, ENTERTAINMENT RECREATION OTHER SERVICES
Governor Abbott’s order directing Texans to minimize This sector includes repair shops (automotive, electronic
all nonessential gatherings and contact with people not in equipment, household appliances), personal care (barber
the same household hit this sector especially hard. Amuse- and beauty shops, nail salons, weight loss centers), funeral
ment parks, bowling centers, fitness centers, museums, parlors and cemeteries, dry cleaners, laundries and mem-
racetracks, sports stadiums, theaters and zoos had to close. bership organizations.
Employment fell 48.8 percent in March and April. Only The stay-at-home orders forced salons and barbershops
clothing and apparel stores saw a more significant percent- to shutter entirely during the height of the pandemic.
age drop. Consumers, worried about exposure to the virus, reduced
The need for social distancing continues to drag on these home repair and maintenance calls. With no need to dress
activities. The Astros are playing without fans in the stadi- up while working from home, dry cleaners saw revenues
ums. The Texans will adopt a similar model. Some fitness drop. Companies often pare back business and professional
centers have reopened, but many have remained closed. memberships to conserve cash in a downturn. This sector
Bowling alleys and museums have strict social distancing will be one of the slowest to recover.

18 NBIZ ■ October 2020