Houston economy to plunge further

HOUSTON – As a future wave of job cuts is forecasted for the energy sector, economists and those in human resources offer a similarly sobering look at the overall health of the area’s economy.

The loss of 1,072 working rigs through June amounts to an ultimate loss of over 240,000 drilling-related jobs, according to a recent report from the Bauer College of Business at the University of Houston.

Houston is home to 35 percent of Texas oil producer and oil service employment.

At the end of May, job losses in the oil and gas industry nationwide amounted to 150,000, up from 120,000 in March, according to Swift Worldwide Resources, an energy staffing firm.

What in particular affects Houston’s outlook is that one job loss that is directly energy-related results in four additional job losses that are indirectly dependent on energy, the University of Houston report said.

See Bauer College of Business’ full report here.