Reflecting on 2024 and Forecasting 2025
As we look ahead to hiring trends in Houston, TX for 2025, it’s important to consider how the city’s labor market has evolved and what we can expect in the coming months. By analyzing these trends on a quarterly basis, we can provide valuable insights for employers and job seekers alike. What are the key trends to keep in mind as you make decisions about hiring, applying, interviewing, or relocating to Houston?
Houston’s Hiring Landscape: What’s Happening in 2025
If you’re looking to understand Houston’s unemployment rate and how it compares to national figures, reliable sources like the Bureau of Labor Statistics, Houston.org, and YCharts.com offer the most current data. As of early 2024, Houston’s unemployment rate stood at 5.10%, a slight decrease from 5.30% in August 2023. Houston finished the year in line with the national unemployment rate of 4.1% in December 2024.
Houston Employers Are Still Hiring
The overall outlook for Houston remains strong in terms of hiring. Employers across sectors are actively looking for talent, and many industries—especially those related to healthcare, technology, and energy—are still experiencing a demand for skilled professionals. While there may be some economic pressure, job seekers should not assume fewer opportunities are available. Instead, understanding the specific dynamics of the local labor market in 2024 can help both employers and candidates make informed decisions.
Oil and Gas Industry Outlook
The Oil and Gas (O&G) sector remains a significant player in Houston’s economy, but it’s also one to watch closely. Historically, the O&G industry operates in a cyclical pattern, with ups and downs every seven to eight years. This cycle typically plays out like this:
1. Pre-Downturn: Companies issue generous bonuses, pay raises, and other incentives in anticipation of a market slowdown.
2. Market Decline: A downturn hits, and layoffs begin, often starting at the C-suite level.
3. Increased Reliance on Contractors: O&G companies turn to contractors to manage the economic dip without committing to full-time hires.
For job seekers, this cyclical shift suggests a potential rise in both retained and contract-based opportunities. Learn more about jobs and hiring in Oil and Gas.
What to Expect in 2025 Hiring Trends
In sum, 2025 is proving that there are plenty of opportunities for both employers and candidates. For employers, staying flexible with hiring strategies (especially by considering contractors)and adjusting for market conditions will be key. For candidates, knowing when to apply, when to relocate, and when to expect a higher demand for your skills can make a significant difference.
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What Hiring Looks Like in Each Quarter
Each quarter possesses its own opportunities and challenges for hiring talent. Here’s what you can expect:
Q1
January and February are the busiest months for hiring and there is a lot of competition. When hiring for accounting, finance, or HR, expect to offer a sign-on bonus. Otherwise, you’ll need to wait until the candidate collects an annual bonus from their current employer.
- Tips:
- Don’t play games. There is still an A&F and HR talent shortage, so be clear with intentions and hiring.
- Prepare for counteroffers.
Q2
Hiring in Q2 is still aggressive, but not at the intensity level of Q1.
- Candidates have received bonuses from their current or previous employer, so they are more likely to start their job searches or dive into a new role quickly.
- This is one of the best times of the year to jump on hiring for roles that require relocation. As summer approaches, families are more open to packing up their lives, selling their homes, and moving since kids are wrapping up the school year.
Q3
This is notoriously a slower quarter for hiring. People indulge in summer by traveling and/or spending more family time. For candidates, this is a great time to seek employment because of the decrease in applicant competition.
- Companies also evaluate roles they need to hire before EOY. Typically, we see an uptick in job postings from mid-August through September.
- Employers likely won’t get as much pushback on candidates waiting to receive their bonuses.
Q4
Up until Thanksgiving, Q4 is a busy time for hiring. Once Thanksgiving hits, the market slows down, which is the domino effect making Q1 chaotic. If you hire in Q4 you will likely need to offer sign-on bonuses to compensate the candidate for leaving an annual bonus at their previous employer behind.
- The advantage to hiring in Q4 is that you can hire, onboard, and train a new employee before the New Year, so they are prepared to tackle their new role in Q1. This way, everyone is acquainted, and training is not an added stress among all other company Q1 responsibilities.
Here We Come, 2025.
We’ll tackle you in quarters.
When you are looking to hire or are ready to make a career jump, think about it in quarters:
Q1
Fast-paced, competitive, and companies should expect to offer sign-on bonuses.
Q2
Hiring is still competitive, but this is typically the best time to approach hiring that requires relocation.
Q3
The summer sunshine and family time slows hiring down. For candidates, this is a great time to seek employment because competition is lower.
Q4
The pregame of Q1. Hiring speeds up again, competition increases, and companies might have to consider sign-on bonuses. It’ll slow down again during the holidays before it takes off at high speed at the start of Q1.
From the first quarter through the fourth, Monarch is here to support hiring needs, career jumps, advise on market trends, and be the preferred talent solutions partner across Houston. We specialize in direct hire accounting, finance, and human resources positions – and it’s our mission to put humanity back into hiring.
From the first quarter through the fourth
Monarch is here to support hiring needs, career jumps, advise on market trends, and be the preferred talent solutions partner across Houston. We specialize in direct hire accounting, finance, and human resources positions – and it’s our mission to put humanity back into hiring.