According to a new study, Houston is among the cities most vulnerable to job loss due to the recession caused by COVID-19. Getty Images

No matter whether the outlook leans more toward optimism or pessimism, Houston stands to lose a head-spinning number of jobs in the grips of a coronavirus-induced recession.

Economist Bill Gilmer, director of the Institute for Regional Forecasting at the University of Houston's Bauer College of Business, says a moderate recession could drain as many as 44,000 jobs from the regional economy by the end of 2020. That's out of nearly 3.2 million workers in the Houston metro area.

The job figures might look "much worse" through the second and third quarters of this year, Gilmer says. However, he adds, Houston's job losses should be followed by a "quick recovery" in 2021.

A study published March 27 by personal finance website SmartAsset predicts an even greater impact on employment in Houston.

SmartAsset forecasts 56,469 full-time and part-time jobs in just the city of Houston, or nearly 5 percent of the local workforce, could be lost in a coronavirus recession. In all, more than 282,000 jobs, or 24.6 percent of the city's workforce, could be in jeopardy, according to the study.

John Diamond, director of the Center for Public Finance at Rice University's Baker Institute for Public Policy, says he thinks Smart Asset's job-loss estimate is "decent" but might be too low.

In light of the federal government's extension of social-distancing guidelines to April 30 and perhaps further extensions, Diamond believes Houston will suffer "substantial" job losses in the next two to four months. After the social-distancing rules are relaxed, Diamond expects an employment bounce-back later in the year.

"The recovery could be rapid if business supply chains and networks remain intact," Diamond says, "and if oil prices rebound by the end of the year."

For his part, Ed Hirs, an economics lecturer at the University of Houston, pessimistically envisions about 300,000 people in the Houston metro area will lose their jobs, at least in the short term, due to the coronavirus recession and the recent plunge in oil prices. (By comparison, the Economic Policy Institute projects the entire state of Texas will lose 442,717 private-sector jobs as a result of the coronavirus pandemic.)

"COVID-19 is going to be kind of a catch-all spring cleaning excuse for a lot of the oil and gas companies as they try to reduce their payroll," Hirs says.

For now, though, concerns about the oil war between Russia and Saudi Arabia must "take a back seat" to concerns about COVID-19, he says.

Aside from the energy industry, the escalating economic slump promises to hit several other prominent business sectors in Houston, including hospitality and manufacturing. Hirs thinks a recession could shrink Houston's 2020 economic output by 10 percent.

"This is across the board," he says, "and has the potential to be extraordinarily devastating."

ThinkWhy, a labor analysis firm, believes the impact of the COVID-outbreak on the Houston job market will be more evident in the blow it delivers to international trade than in any boost it provides to the health care sector. "But the pandemic will no doubt have an impact on both," the firm says.

It's already having a tremendous impact on small and midsize businesses in the Houston area. A March 23-28 survey by the Greater Houston Partnership found 34 percent of those businesses already had reduced their headcounts in response to the COVID-19 slowdown. And 55 percent said they're unsure whether they'll wind up carrying out permanent layoffs in the next six months.

"Houstonians like to embrace the notion that their metro was among the last to enter the Great Recession and was among the first to exit. That's not going to be the case this time," economist Patrick Jankowski, senior vice president of research at the Greater Houston Partnership, wrote in an unvarnished economic assessment published March 20. "All three pillars of Houston's economy — energy, global trade, and the U.S. economy — are tottering. The next 12 to 18 months will likely be very rough for Houston."
Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Houston researchers report promising first in-human trial for implantable cancer therapy

cancer breakthrough

When it comes to cancer remedies, the treatment can be as challenging for the body as its cause. But what if immunotherapy could be localized? That’s precisely what a Houston team may soon make a reality.

Rice University researchers, in partnership with MD Anderson Cancer Center, recently published their findings from the first in-human trial of an implantable cancer-fighting treatment in the journal Clinical Cancer Research. The paper details testing of AVB-001, encapsulated cells engineered to release interleukin-2 (IL-2)—a naturally occurring signaling protein that boosts immunity—in the peritoneal cavities of 14 patients. The goal is to avoid the toxicity usually experienced with less targeted treatments, as well as find a solution to IL-2s’ abbreviated half-lives.

“Traditional IL-2 therapy has shown potent antitumor activity, but its clinical use has been limited by severe side effects and delivery challenges,” Omid Veiseh, director of the Rice Biotech Launch Pad, professor of bioengineering at Rice and a senior author on the study, said in a press release. “This platform allows us to localize and sustain cytokine exposure directly where tumors reside while minimizing systemic toxicity.”

Serous ovarian carcinoma is especially well-suited to the use of AVB-001 because it tends to spread throughout the abdomen. After a minimally invasive laparoscopic procedure, patients implanted with the cells were noted to tolerate the treatment well. Half of the enrolled patients’ cancer was stabilized, with several among them reporting extended signs of benefit. No maximum tolerated dose was reached and there were no life-threatening events tied to the study.

If that sounds like less-than-earth-shaking results, this is only the beginning. The capsules were implanted for about one week because IL-2 activity drops off after that. The researchers now know that further testing should include either higher levels, repeated doses, or a combination thereof, in order to create stronger advances.

The team has already made early headway on this next step. Preclinical studies in nonhuman primates were not only tolerated well, but without added toxicity, the apes had consistent pharmacological effects.

“This is a foundational step,” Veiseh explained. “We now have evidence that the platform is safe, biologically active and potentially scalable. The next phase is optimizing dosing and exploring combination therapies to unlock its full clinical potential.”

The combination would also include a checkpoint inhibitor, which might improve AVB-001’s tumor-fighting power. “What is exciting is that we are not just delivering a drug, we are programming a microenvironment,” added Dr. Amir Jazaeri, professor of gynecologic oncology at MD Anderson, member of the Rice Biotech Launch Pad’s clinical advisory board and a senior author on the study. “This opens the door to combination strategies that could amplify immune responses in ways that have not been feasible before.”

Houston startup raises $6M to scale home-based healthcare platform

fresh funding

As healthcare systems race to expand care beyond hospitals and into the home, investors are placing bigger bets on the infrastructure needed to make that shift possible.

This month, Rosarium Health announced it has raised $6 million in seed funding led by Kalos Ventures, with participation from ResilienceVC, Rock Health Capital, Symphonic Capital, Black Tech Nations Ventures and others.

The investment will help the Houston-based startup continue to build its platform, which features a national network of 800-plus clinicians and 3,000-plus contractors to coordinate home accessibility upgrades and modifications for seniors and people living with disabilities.

For founder and CEO Cameron Carter, the company’s mission grew out of firsthand caregiving experiences.

“From my own personal caregiving experiences, I realized that the benefits exist on paper, but not in reality,” Carter said in a news release. “Families are being left to figure out the paperwork and installations all on their own, which shouldn’t be how this works.”

While Medicare Advantage and Medicaid plans have expanded coverage for home-based services and accessibility modifications, the logistics behind delivering those services often remain fragmented.

Rosarium’s platform coordinates the entire process, from clinical assessments and referrals to contractor management, documentation, reimbursement and installation.

“A clinician can document that a home isn’t safe and a plan can approve a benefit, but there’s no one that’s responsible for making sure the work actually gets done,” Carter says. “We built the missing piece.”

The company was founded in 2021 as Rose Health and was a 2023 participant in the Texas Medical Center’s Accelerator for HealthTech program. It has scaled quickly, building a network of more than 800 clinicians and 3,000 contractors across 34 states.

Rosarium is currently in-network for 1.2 million Medicare and Medicaid lives, with projected coverage expected to reach nearly 4 million by the end of the year, according to the release.

“We’re excited to back Cameron because he and the team at Rosarium are building the infrastructure healthcare needs right now to make the home a safe and comfortable place of care,” Kate Ballinger, investor at Kalos Ventures, added in the release.

As part of the recent investment, Ballinger will join Rosarium’s board of directors.

With eyes on the future, Rosarium plans to grow its partnerships with Medicaid and Medicare Advantage plans, including CalViva and Community Health Plan of Imperial Valley, strengthening its presence in California while expanding access to underserved communities.

Additionally, Carter predicts that home-based healthcare will be part of a broader transformation happening across the industry.

“There’s a growing recognition that health outcomes are shaped by what happens in the home,” he said in the release. “The future of healthcare isn’t just treating people after something goes wrong. It’s creating environments that help prevent those problems in the first place.”