Houston Economy Rebounding With Projected Higher Growth in 2018

HOUSTON, TX -- A local economist says the Houston area economy is in the midst of a rebound, ending a period of stagnant economic growth that started with the oil downturn in late 2014.

Patrick Jankowski, senior vice president for research and development for the Greater Houston Partnership, addressed local business and community leaders Friday at the 2017 Houston Northwest Chamber of Commerce Economic Outlook Forum, and said the local economy has begun to rebound, which means more jobs being created in 2018.

“The worst is over,” Jankowski said.

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During the regional economic forum in March 2015, economist Bill Gilmer, director for the Institute of Region Forecasting at the University of Houston, projected the Houston area was at that time in the early stages of a recession, and projected that oil prices had already begun to drop and rig counts were already being reduced in the Permian Basin and other oil fields.

Gilmer also projected at the time that job growth would shrink significantly, and that the recession would remain through 2016, and 2017.

Gilmer was nearly spot on with his analysis.

However, Jankowski said the economy has already begun to rebound, and that the Houston metro area actually experienced a level of robust growth in 2016, despite a weak local economy.

“Some people come here for jobs, some people come here for families, and some people come here from far and wide, nd some people come here from Chicago because they don’t want to shovel snow anymore,” he said.

Over the last seven years, Jankowski said the Houston metro area has grown by 150,000 people -- the equivalent of dropping the entire population of El Paso in to Houston, he said.

Jankowski added that the local economy began adding new jobs in August 2016, and that the economy will continue it’s upward thrust through the remainder of 2017, and into 2018.

The job growth will come some from the oil and gas industry, which is due for an upswing, and will also be aided by other industries, such as healthcare occupations.

“2017 won’t be as good as 2014, but it will better than 2015, and 2016 were,” he said.

Image: Sarath Kuchi via Flickr

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