Houston tech jobs to grow in 2025 as Texas leads U.S. in new tech employment

by the numbers

The Houston area is expected to employ 158,176 tech professionals this year, according to a new report by CompTIA. Photo via Getty Images.

Tech employment in the Houston metro area is expected to climb by more than two percent this year, according to a new projection.

CompTIA’s State of the Tech Workforce 2025 report forecasts the Houston area will employ 158,176 tech professionals this year, compared with an estimated 154,905 last year. That would be an increase of 2.1 percent.

These numbers take into account tech workers across all industries, not just those employed in the tech sector. Many of these professionals do work in the tech sector (40 percent), with the remainder (60 percent) employed in other sectors.

Even more impressive than the year-to-year increase is the jump in Houston-area tech employment from 2019 to 2025. During that period, tech employment grew 16.6 percent, according to the report.

The Houston area ranks eighth among major metro areas for the number of tech jobs expected to be added this year (3,271). Dallas rises to No. 1 for the most jobs expected to be added (projection of 13,997 new tech jobs in 2025), with Austin at No. 5 (7,750 new jobs) and San Antonio at No. 21 (1,617 new jobs).

On a state-by-state basis, Texas ranks first for the number of tech workers projected to be added this year (40,051)—up significantly from the 8,181 jobs estimated to be added in 2024—and second for the size of the tech workforce last year (972,747), the report says. The Lone Star State lands at No. 4 for the highest percentage (24 percent) of tech jobs expected to be added from 2025 to 2035.

Backed by a nearly $1.4 billion commitment from the state, the semiconductor industry is helping propel the growth of tech jobs in Houston and throughout Texas.

In 2023, the state launched the Texas Semiconductor Innovation Fund. The fund provides incentives to encourage semiconductor research, design and manufacturing in Texas. State lawmakers allocated $698.3 million for the fund. Another $660 million in state money will help establish semiconductor research and development centers at the University of Texas at Austin and Texas A&M University.

“Texas has the innovation, the infrastructure, and the talent to continue to lead the American resurgence in critical semiconductor manufacturing and the technologies of tomorrow,” Gov. Greg Abbott said in a release.

The Houston area is benefiting from the semiconductor boom.

For example, chip manufacturer Nvidia and electronics maker Foxconn plan to build a factory in Houston that will produce AI supercomputers.

Nvidia said in April that the AI supercomputers “are the engines of a new type of data center created for the sole purpose of processing artificial intelligence — AI factories that are the infrastructure powering a new AI industry.”

Meanwhile, tech giant Apple plans to open a 250,000-square-foot factory in Houston that will manufacture servers for its data centers in support of Apple’s AI business. The Houston plant is part of a four-year, $500 million nationwide expansion that Apple unveiled in February.

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The analysis cites Amazon, Apple, and Tesla as three of the major employers in Texas pursuing AI initiatives. Photo via Getty Images

Texas ranks as top state for interest in AI-related job postings

eye on AI

If internet search volume is an accurate barometer, Texas is a hotbed for interest in artificial intelligence jobs.

An analysis by Agility Writer, whose technology helps users produce AI-generated content, shows Texas ranks second among the states with the highest monthly search volume for AI-related jobs. The analysis puts Texas’ monthly search volume at 1,300, with California sitting in first place at 1,900 monthly searches.

“As the AI revolution continues to gain momentum, the geographic distribution of interest in AI careers is likely to evolve further, with states investing in AI education and fostering supportive ecosystems poised to reap the benefits of this transformative technology,” says Adam Yong, CEO of Agility Writer.

The analysis cites Amazon, Apple, and Tesla as three of the major employers in Texas pursuing AI initiatives.

Dice.com, a search engine for tech jobs, says AI roles that are in high demand include machine learning engineer, data scientist, AI research scientist, and robotics engineer.

“Looking forward, the demand for AI professionals is expected to intensify as technologies continue to advance and integrate into everyday business processes and consumer products. AI is not just creating jobs but also transforming them, requiring workers to adapt by gaining new skills,” says Dice.com.

A January 2024 report from career platform LinkedIn found that AI consultant and AI engineer are two of the 25 fastest-growing jobs in the U.S. this year. Most of these roles are concentrated in San Francisco, New York City, Washington, D.C.-Baltimore, and Boston, according to the report.

On the flip side, some analysts predict millions of jobs will be affected by or even lost to AI. For example, research from investment banking giant Goldman Sachs indicates roughly two-thirds of U.S. occupations “are exposed to some degree of automation by AI.”

A study released in 2023 by Chamber of Commerce, a business research company, anticipates as many as 12 percent of Houston-area workers could lose their jobs by 2027 due to AI.

"AI and technology in general may be taking certain jobs away, and yet we also see how it is changing the nature of jobs and even organizations and professions. In the ever-changing arena of AI, employees, job-seekers, and students will continue to adapt and learn new job skills that align with and anticipate workforce needs,” AI expert Fred Oswald, the Herbert S. Autrey Chair in Social Sciences at Rice University and a professor of psychological sciences, said in a 2023 news release.

According to a new report, Houston's a growing hub for tech jobs. Photo via Getty Images

Report: Houston tech workforce sees steady growth

job market

The Houston metro area may not enjoy a national profile as a tech hub, but the region is a growing force in tech employment.

The State of the Tech Workforce report, released by the CompTIA trade group, found that the Houston metro area added 5,090 tech jobs in 2022. That put Houston at No. 9 among major U.S. metro areas for growth in tech jobs last year. Tech employment in the region grew 3.5 percent in 2022 versus 2021, compared with the national growth rate of 3.2 percent.

“In a year of even more uncertainty than usual, the tech labor market routinely defied expectations,” Tim Herbert, chief research officer at CompTIA, says in a news release. “The data continues to confirm the degree to which technology underpins so many facets of business activity across the economy and the breadth of employers reliant on technical and digital skills.”

CompTIA predicts the tech workforce in the Houston area will grow 2.2 percent this year, down more than a full percentage point from 2022. The projected growth rate would represent about 3,300 new jobs.

These are the tech jobs that CompTIA expects to see the biggest gains here in 2023:

  • Software developer
  • Software programmer
  • Web developer
  • Software quality assurance specialist
  • Database specialist
  • Data scientist
  • Computer scientist
  • Cybersecurity specialist
  • Systems engineer

The share of Houston-area job postings for roles in emerging technology or those requiring emerging-tech skills accounted for nearly one-fourth (24.4 percent) of the region’s job postings in 2022, the report says. These jobs are in areas such as artificial intelligence, robotics, and blockchain.

An estimated 150,145 people work in tech-related jobs in Houston, with a median wage of $89,197, according to the report. That wage is 112 percent higher than the median wage for all occupations in the region.

The tech sector generates an estimated economic impact of $20.7 billion for the Houston metro area, making up 3.3 percent of the entire local economy, CompTIA says.

Houston saw the biggest year-over-year jump in tech job postings among the top 25 U.S. cities for tech job growth, according to this report. Photo via Getty Images

Houston ranks as the top market for tech job growth

By the numbers

Houston is experiencing a boom in tech employment.

A recent report from Dice, a job platform for the tech industry, says Houston saw the biggest year-over-year jump in tech job postings among the top 25 U.S. cities for those postings.

From January through October this year, the number of tech job postings in Houston soared 45.6 percent versus the same period a year earlier. That compares with a 22.8 percent statewide increase during the same time span.

“Although sometimes overshadowed by the cachet of Dallas, Austin, and San Antonio, Houston is absolutely a tech hub in its own right, attracting a mix of major tech companies and VC-backed startups to join its already established base of aerospace, defense, and energy companies,” Dice says.

For the one-year period covered by the Dice report, San Antonio witnessed a 17.3 percent rise in tech job postings, with Austin at 9.6 percent and Dallas at 7.7 percent.

In citing Houston’s astronomic showing, Dice notes that the region benefits from the presence of tech employers like Asurion, AWS, Fiserv, Dell, IBM, and Siemens, along with a number of venture-backed startups.

Top tech occupations in the Houston area include software developer/engineer, business analyst, .NET developer, data analyst/engineer/scientist, DevOps engineer, network engineer, and full stack engineer, according to Dice. The region’s average tech salary is $100,341.

More broadly, the Greater Houston Partnership forecasts healthy job growth in 2023 while noting that a recession could temper the growth.

A “short and shallow” recession in the first half of 2023 would mean a net gain of 60,800 jobs next year, the partnership says. If no recession hits Houston, that number could climb as high as 79,200 jobs. However, a prolonged recession would limit job growth to about 30,400 jobs.

The partnership predicts 2023 job growth will be strongest in the region’s construction, energy, government, health care, professional services, and restaurant sectors. Within the professional category, which includes tech services, the partnership anticipates the addition of anywhere from 2,000 to 7,900 new jobs next year.

Through the first 10 months of this year, the Houston area added 144,000 new jobs, according to data from the Texas Workforce Commission. In November, the region’s unemployment rate stood at 4 percent, down from 5.1 percent a year earlier.

“As we look ahead to 2023 and what the future has in store, I’m incredibly optimistic about Houston’s prospects, despite a possible recession,” Bob Harvey, president of the partnership, says in a news release. “We have our challenges — from ensuring we lead on the energy transition to effectively competing for top talent — but each time Houston has been underestimated, we’ve come out on top. I believe that will be the case once again.”

Houston's tech job force growth leads Texas, says the new report. Image via Getty Images

Houston tops Texas as No. 1 city for growth in tech jobs, says new report

plugged in

While a certain city tends to draw all the buzz as the top Texas tech hub — especially since Elon Musk moved there — Houston has just emerged as No. 1 in the Lone Star State regarding tech jobs.

A new report from Dice, an online platform for tech professionals, shows Houston No. 5 among major U.S. cities for the growth of tech job postings from the first half of 2021 to the first half of 2022.

Houston, says the Dice report, registered an increase of 83 percent — making it tops in Texas.

Elsewhere in Texas, San Antonio No. 6 among major U.S. cities (and No. 2 in Texas) with an increase of 80 percent. Dallas appeared at No. 15 on the list, recording a 58 percent growth rate for tech job postings. Surprisingly, Austin failed to make the top 25 in this category.

Overall, Orlando, Florida topped the list, boasting a 111 percent growth rate for tech job postings.

This news is hardly surprising for Houston. In March, as CultureMap reported, Houston landed at No. 2 on Blind’s list of the best-paying Texas cities for software engineers. Here, the average annual salary is $111,625, and the average annual compensation is $137,987.

“Long before Austin became a magnet for jobs, there was Houston. Long a hub for the aerospace, defense, and energy industries, the aptly named Space City has been a go-to place for a job in tech,” Blind noted.

In October 2021, as CultureMap and sister site InnovationMap reported, employers in the Houston area posted openings for 14,714 tech jobs in the third quarter of 2021, which was up 44 percent from the same period last year. Through the first nine months of this 2021, Houston-area employers listed nearly 39,000 openings for tech positions.

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This article originally ran on CultureMap.

A new report ranks Texas as a top spot for tech workers. Photo via Getty Images

Texas ranks as top state for tech workers

techy texas

The Houston area can help wave Texas’ newly hoisted flag representing its status as the best state for tech workers.

A new study by IT service automation company SysAid analyzed several factors that affect a state’s desirability for tech workers, such as average internet speed and coverage, number of available tech jobs, and average industry salary compared with the state average. When all the data was tallied, Texas came out on top.

Here are a couple of data points that helped push Texas to the No. 1 position:

  • 31,110 tech jobs are available in the state, demonstrating significant demand for tech workers.
  • The typical tech salary is $103,370, more than double the state’s typical salary of $50,490.

As home to a bevy of tech companies like BMC Software, FlightAware, Hewlett Packard Enterprise, HighRadius, and NetIQ, the Houston area certainly contributes to the state’s No. 1 standing. According to a report released in 2021 by the Greater Houston Partnership and Houston Exponential, the more than 8,800 tech-related businesses in the region help generate $28.1 billion in local GDP.

Statewide, the tech sector pumps $142.8 billion into the economy, according to a recent report from CompTIA, a trade group for the tech industry.

Ranked behind Texas in the SysAid study are four states viewed as tech rivals:

  • California, No. 2.
  • New York, No. 3.
  • Virginia, No. 4.
  • Florida, No. 5.

“Jobs in tech and IT are becoming more in demand, with typically high salaries making the jobs desirable and free courses in coding making the industry more accessible. The data reveals that it is easier in some states to work in tech than others, with demand and salaries varying massively between states,” SysAid says. “Texas tops our list as the best state to work in tech, and it is fascinating to see that California, home to Silicon Valley, is not [at the] top.”

The CompTIA report shows nearly 791,000 people work in Texas’ tech sector. Texas ranks first among all the states for the number of tech jobs (10,851) added in 2021 and second for the size of its tech workforce (behind California). Texas also ranks second, behind Florida, for the number of tech businesses (1,807) launched in 2021.

CompTIA projects Texas will rank second this year, behind California, for the number of tech jobs added (21,303).

“Unlike other would-be innovation hubs, [Texas] has been quietly nurturing high-tech industry for decades. If Texas eventually rivals California, the consequences could be momentous, not just for industry, but for U.S. politics,” according to a Bloomberg opinion piece published in 2021.

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MD Anderson launches $10M collaboration to advance personalized cancer treatment tech

fighting cancer

The University of Texas MD Anderson Cancer Center and Japan’s TOPPAN Holdings Inc. have announced a strategic collaboration to co-develop TOPPAN Holdings’ 3D cell culture, or organoid, technology known as invivoid.

The technology will be used as a tool for personalized cancer treatments and drug screening efforts, according to a release from MD Anderson. TOPPAN has committed $10 million over five years to advance the joint research activities.

“The strategic alliance with MD Anderson paves a promising path toward personalized cancer medicine," Hiroshi Asada, head of the Business Innovation Center at TOPPAN Holdings, said in a news release.

Invivoid is capable of establishing organoid models directly from patient biopsies or other tissues in a way that is faster and more efficient. Researchers may be able to test a variety of potential treatments in the laboratory to understand which approach may work best for the patient, if validated clinically.

“Organoids allow us to model the three-dimensional complexity of human cancers in the lab, thus allowing us to engineer a powerful translational engine—one that could not only predict how patients will respond to therapy before treatment begins but also could help to reimagine how we discover and validate next-generation therapies," Dr. Donna Hansel, division head of pathology and laboratory medicine at MD Anderson, added in the news release. “Through this collaboration, we hope to make meaningful progress in modeling cancer biology for therapeutic innovation.”

The collaboration will build upon preclinical research previously conducted by MD Anderson and TOPPAN. The organizations will work collaboratively to obtain College of American Pathologists (CAP) and Clinical Laboratory Improvement Amendments (CLIA) certifications for the technology, which demonstrate a commitment to high-quality patient care. Once the certifications are obtained, they plan to conduct observational clinical studies and then prospective clinical studies.

“We believe our proprietary invivoid 3D cell culture technology, by enabling the rapid establishment of organoid models directly from patient biopsies, has strong potential to help identify more effective treatment options and reduce the likelihood of unnecessary therapies,” Asada added in the release. “Through collaboration on CAP/CLIA certification and clinical validation, we aim to bring this innovation closer to real-world patient care and contribute meaningfully to the advancement of cancer medicine."

NASA taps Houston-area company to explore low-cost spacecraft delivery

Webster-based Arrow Science and Technology is one of six companies picked by NASA to study low-cost ways to launch and deliver spacecraft for difficult-to-reach orbits.

In all, nine studies will be performed under a roughly $1.4 million award from NASA. Another Texas company, Cedar Park-based Firefly Aerospace, is also among the six companies working on the studies.

“With the increasing maturity of commercial space delivery capabilities, we’re asking companies to demonstrate how they can meet NASA’s need for multispacecraft and multiorbit delivery to difficult-to-reach orbits beyond current launch service offerings,” Joe Dant, a leader of the Launch Services Program at NASA’s Kennedy Space Center in Florida, said in a news release. “This will increase unique science capability and lower the agency’s overall mission costs.”

Arrow is teaming up with Rockville, Maryland-based Quantum Space for its study. Quantum’s Ranger orbital transfer vehicle provides payload delivery services for spacecraft heading to low-Earth and lunar orbits.

Arrow, a Native American-owned small business, offers technical support and hardware manufacturing services for the space and defense industries.

James Baker, founder and president of Arrow, said in a news release that the combination of his company’s deployment systems with Quantum’s Ranger vehicle “allows our customers the ability to focus on the development of their payload[s] while we take care of getting them where they need to be.”

“This is an exciting opportunity to demonstrate the unique capabilities of our highly maneuverable Ranger spacecraft, which will expand NASA’s options for reaching dynamic and challenging … orbits,” Kerry Wisnosky, CEO of Quantum Space, added in the release.

The nine studies are scheduled to be completed by mid-September.

NASA said it will use the studies’ findings “to inform mission design, planning, and commercial launch acquisition strategies for risk-tolerant payloads, with a possibility of expanding delivery services to larger-sized payloads and to less risk-tolerant missions in the future.”

ExxonMobil may pause plans for $7 billion Baytown hydrogen plant

Change of Plans

Spring-based ExxonMobil, the country’s largest oil and gas company, might delay or cancel what would be the world’s largest low-carbon hydrogen plant due to a significant change in federal law. The project carries a $7 billion price tag.

The Biden-era Inflation Reduction Act created a new 10-year incentive, the 45V tax credit, for production of clean hydrogen. But under President Trump’s "One Big Beautiful Bill Act," the window for starting construction of low-carbon hydrogen projects that qualify for the tax credit has narrowed. The Inflation Reduction Act mandated that construction start by 2033. But the Big Beautiful Bill switched the construction start time to early 2028.

“While our project can meet this timeline, we’re concerned about the development of a broader market, which is critical to transition from government incentives,” ExxonMobil Chairman and CEO Darren Woods said during the company’s recent second-quarter earnings call.

Woods said ExxonMobil is working to determine whether a combination of the 45Q tax credit for carbon capture projects and the revised 45V tax credit will help pave the way for a “broader” low-carbon hydrogen market.

“If we can’t see an eventual path to a market-driven business, we won’t move forward with the [Baytown] project,” Woods said.

“We knew that helping to establish a brand-new product and a brand-new market initially driven by government policy would not be easy or advance in a straight line,” he added.

Woods said ExxonMobil is trying to nail down sales contracts connected to the project, including exports of ammonia to Asia and Europe and sales of hydrogen in the U.S.

ExxonMobil announced in 2022 that it would build the low-carbon hydrogen plant at its refining and petrochemical complex in Baytown. The company has said the plant is slated to go online in 2027 and 2028.

As it stands now, ExxonMobil wants the Baytown plant to produce up to 1 billion cubic feet of hydrogen per day made from natural gas, and capture and store more than 98 percent of the associated carbon dioxide. The company has said the project could store as much as 10 million metric tons of CO2 per year.

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This article originally appeared on EnergyCapitalHTX.com.

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