Experts Predict Steady Job Growth, Higher Wages for Houston Area

Houston Business Journal

More Houston employers are expecting to hire this year, continuing the trend of job growth in the area. However, local employers are less optimistic about the overall economy, according to two recent reports.

A report by Houston-based Murray Resources Ltd. indicates that 78.7 percent of companies expect to hire this year — up 10 percent from 2012. However, the Greater Houston Partnership predicts a total of 76,000 jobs will be created in the 10-county Houston area this year, which is down from the expected 85,000 to 90,000 jobs for 2012.

Patrick Jankowski, vice president of research for the GHP, said the good news is that Houston could be entering a more sustainable growth period.

“We’ve been growing so strong. We want normal, steady growth. It’s a lot easier to plan for, a lot easier to absorb,” said Jankowski.

The final local number of jobs created in 2012 will be released in March.

Employers surveyed by Murray Resources indicated more direct hires, said Marsha Murray, president and founder of the recruiting and staffing firm.

Of the companies surveyed, 70 percent report they will hire more full-time workers — an indication of confidence since employers tend to hire part-time and temporary workers when they are less confident about the economy, said Murray.

The job statistics reported by the GHP does not distinguish between full-time, part-time or temporary jobs.

The Murray Resources report indicated employers are less optimistic about the economy, and both Murray and Jankowski agree that Washington, D.C., is one of the wild cards in the bigger picture.

“The big unknown is spending cuts (from Washington, D.C.),” Jankowski said. “I have no idea what is going on in (House Speaker John) Boehner’s head or (President) Obama’s head.”

Negative national news and the conflicted and devisive approach in Washington will have some impact on Houston, said Murray.

“We’re very sound in Texas, however, and our numbers look good — housing is up, unemployment is down.”

Uncertainty over spending and health care reform are other negative factors, said both Murray and Jankowski.

What Washington does impacts the Houston market, he said, although in a smaller way than some cities. The 2 percent increase in Social Security taxes will impact spending, said Jankowski, as well as other factors such as if oil falls below $75 a barrel.

Local marketplace trends, such as increased worker hours in manufacturing, indicate Houston is still in full recovery mode due to the robost energy industry.

“So much of what we do supplies the oil and gas industry,” said Jankowski.

Manufacturers are clocking 49.1 hours per week, which “tells me output is up,” he added.

However, other factors, such as nonrenewable goods not recovering as well due to those jobs being shipped overseas, is a trend to pay attention to, Jankowski said.

Generally, job growth has been seen across the board. The hottest jobs are in engineering, sales, marketing and operations, said Murray, and employers are looking for experienced workers.

The challenge has been finding qualified personnel and retaining them, she said. Companies have been adding amenities — such as day care, telecommuting and extra days off — to attract and retain workers.

Employees may also expect more raises across the board this year, said Jankowski, which may help offset some of the Social Security taxes, but will also increase the sense of job security.

“The boom taking place now is job growth and income growth,” said Jankowski. “We pretty much recovered everything we had lost in the recession. 2013 is expansion.”