Houston has been able to rely on its Economy.html">diverse and healthy economy to help keep its head above water during the recession.  While government jobs have shown some net losses, many other sectors have actually posted gains in the face of poor economic conditions.  These sectors include the businesses services, leisure, hospitality, health services sectors, and even the manufacturing sector.  The reason for the growth is not completely clear, but Houston has redefined itself as a southwest hub of economic growth and diversity.

Traditionally, Houston was a major center for the oil rush that occurred at the turn of the 20^th century.  Big oil has always played a role in city planning and management, and today, with fossil fuels still in high demand, Houston is still one of the world’s oil meccas.  Interestingly, Houston has increased the number of gas and oil refining plants and has become one of the nation’s biggest refiners of the black gold.  It also has one of the largest chemical and petrochemical refining operations in the world.  There are many chemical and energy companies invested quite heavily in operations in and around the city of Houston.  This energy and energy technology based economy, where Houston had all of its eggs in one basket so to speak, made the city extremely vulnerable to oil shortages and general economic recessions.  Over the past 20 years though, Houston has attracted many businesses, large and small, in order to help diversify its economy.

Tourism is big in Houston.  NASA has a huge presence there at the Johnson Space Center.  Also, there is a thriving restaurant sector as well as hospitality sector which seem to be going strong even during this economic storm. Its low cost of living has helped to attract workers from all over, looking for respite from higher costs of everything from energy to housing to food and basic living supplies.

The city’s labor force has shown some serious growth over the past decade.  It’s grown nearly 25% and shows little signs of stopping.  This huge up-tick in human capital makes Houston one of the best places for corporations looking for cheap and easily accessible labor pools to relocate to.  The city itself boasts over 10,000 manufacturing and production facilities, many of which have been able to weather the economic storm fairly well since they are in the high tech or energy manufacturing sector.

Houston will likely swing and sway with the winds of the recession, similar to most other US cities.  With the recent investments in diversifying its economy, and with a large labor pool, employment in this city will likely take off when the end of the recession finally comes.

The biomedical sector as well as the aerospace sector give some cushion to Houston’s economy.  The former, being one of the hottest growth sectors nationwide, while the latter has seen better days.  Biomedical and biotech firms seem to be a common denominator in many of the more successful cities nationwide.  Houston, like the rest of Texas, is keeping its head above water and will likely remain one of America’s strongest and most influential cities for decades to come.