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."
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Houston brain health co. secures $6.5M for rare disease study

neuro funding

Houston-based Goldenrod Therapeutics, part of Fannin Partners' portfolio, has announced the initial close of a $6.5 million series seed preferred stock round.

The round was led by Ataxia Ventures and an affiliate of Fannin, according to a news release.

Goldenrod Therapeutics plans to use the funding to support manufacturing, formulation optimization, IND-enabling studies and a Phase I study of its drug to treat brain inflammation, known as 11h.

The study will consider how 11h, which blocks the enzyme PDE4, could treat Friedreich’s ataxia (FA), a rare genetic disease that affects movement, speech and balance. To date, other PDE4 inhibitors have proven to regulate neuroinflammation and neuronal signaling, but have had adverse gastrointestinal side effects or have not reached enough of the central nervous system, according to Goldenrod.

The company says its 11h is expected to have "broad applicability" with limited emetric side effects.

“Our 11h program is a next-generation, orally bioavailable, brain-penetrant PDE4 inhibitor, where researchers overcame longstanding limitations associated with earlier PDE4 inhibitors," Dr. Dev Chatterjee, CEO of Goldenrod, said in the news release. "We believe this creates the potential for a best-in-class therapy for Friedreich’s Ataxia and a potential foundation for development across multiple neurodegenerative and neuroinflammatory disorders.”

11h was first developed at the University of Nebraska Medical Center (UNeMed). Houston-based Fannin Partners in-licensed the product 2020 and landed SBIR Phase I funding to support its initial development for opioid use disorder soon after.

Goldenrod has also received funding to study 11h's effectiveness for multiple sclerosis, methamphetamine addiction and cocaine addiction.

Goldenrod says it is developing 11h to target a variety of neurological and inflammatory conditions, including Alzheimer's disease, multiple sclerosis, ALS, substance use disorders, Batten disease, pain and traumatic brain injury.

27 Houston companies make Fortune 500 for 2026, led by energy giants

Houston HQs

Editor's note: This article has been updated to correct the number of companies based in the Dallas-Fort Worth area.

Houston is a giant among U.S. hubs for corporate headquarters.

The 2026 Fortune 500 lists 27 companies based in the Houston area, with many energy companies claiming top spots. Houston ties with Chicago for the second-most Fortune 500 headquarters, preceded only by New York City (53). Dallas-Fort Worth is home to 24 Fortune 500 headquarters.

Texas leads the nation for Fortune 500 headquarters (57), with California in the No. 2 spot and New York at No. 3.

“Texas is the undisputed headquarters of headquarters,” Gov. Greg Abbott said in a news release. “The world’s leading businesses invest with confidence in Texas because of our welcoming business climate, predictable regulatory environment, and skilled and growing workforce. People and businesses are choosing Texas because Texas works.”

The 2026 Fortune 500 ranks the largest U.S. corporations based on revenue in fiscal year 2025.

Here’s a rundown of the 27 Fortune 500 companies based in the Houston area.

  • No. 9 ExxonMobil
  • No. 21 Chevron
  • No. 29 Phillips 66
  • No.55 Sysco
  • No. 75 ConocoPhillips
  • No. 89 Enterprise Products Partners
  • No. 103 Plains GP Holdings
  • No. 133 Hewlett Packard Enterprise
  • No. 149 NRG Energy
  • No. 157 Quanta Services
  • No. 164 Baker Hughes
  • No. 173 Occidental Petroleum
  • No. 179 Waste Management
  • No. 201 EOG Resources
  • No. 204 Group 1 Automotive
  • No. 207 Halliburton
  • No. 223 Cheniere Energy
  • No. 236 Corebridge Financial
  • No. 262 Targa Resources
  • No. 266 Kinder Morgan
  • No. 388 Westlake
  • No. 435 CenterPoint Energy
  • No. 438 APA
  • No. 440 Comfort Systems USA
  • No. 455 NOV
  • No. 488 KBR
  • No. 496 Coterra Energy. Oklahoma City, Oklahoma-based Devon Energy and Houston-based Coterra Energy merged in early May, with the combined company retaining the Devon Energy name and the Houston headquarters.

The Greater Houston Partnership notes the Houston area soon will welcome its 28th Fortune 500 company. Expand Energy (formerly Chesapeake Energy), appearing at No. 362 on the 2026 list, says it’s moving its headquarters from Oklahoma City to Spring this year.

As the natural gas producer prepares to relocate to Texas, it’s hunting for a new leader. Nick Dell’Osso stepped down as president and CEO earlier this year. Board Chairman Michael Wichterich is interim president and CEO.

Dell’Osso became president and CEO of Oklahoma City-based Gulfport Energy effective May 28.

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This article first appeared on EnergyCapitalHTX.com.