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Houston's August unemployment rate reaches 8-year high, surpasses state and national rates

Houston's unemployment rate reached 5% in August, the highest since 2017, surpassing both state and national levels. 

 

By Leonardo Rosas 

 

KHOU 11

Sep 24, 2025

 

Houston’s job market shows signs of strain as unemployment hits a post-pandemic August high.

 

HOUSTON — A key economic metric in the Houston metroplex has reached a level not seen outside of the pandemic and following the aftermath of the oil bust about a decade ago.

The unemployment rate in the Houston metropolitan statistical area reached 5% in August, up 0.5% from July, according to a report from the Greater Houston Partnership, which looked at data published by the Texas Workforce Commission. The data was not seasonally adjusted.

Houston's rate came in higher than the statewide unemployment rate of 4.7% and the national rate of 4.5%. Although unemployment in Houston and statewide rose from July to August, the national unemployment rate fell, going from from 4.6% to 4.5%.

The last time Houston's August unemployment rate was above 5% was in 2017, marking an eight-year high.