money problems

Houston ranks No. 3 on list of cities with the most people in financial distress amid COVID-19

Out of the largest 100 cities in the country, Houston ranks high up on the list that evaluated personal financial distress of citizens. Photo by Scott Halleran/Getty Images

During the pandemic-produced recession, debt and loans are weighing heavily on the hearts and minds of Houstonians.

A study released this week by personal finance website WalletHub found Houston ranks first among the country's 100 largest United States cities for online searches about debt and first for online searches about loans. Overall, Houston ranks third for financial distress, behind first-place Las Vegas and second-place Chicago.

To examine where Americans are struggling the most financially, WalletHub compared the 100 largest cities across nine key metrics. Factors taken into consideration include average credit score, number of bankruptcy filings between June 2020 and June 2019, and online searches regarding debt and loans.

Aside from sitting at No. 1 for interest in debt and loans, Houston ranks:

  • No. 9 for share of people with accounts in distress in September
  • No. 9 for average number of accounts in distress in September
  • No. 12 for average credit score in September

WalletHub defines a distressed account as one for which payments have been reduced, skipped or delayed.

Among Texas cities, Houston has a lot of company in WalletHub's top 10. San Antonio appears at No. 4, Dallas at No. 5, Austin at No. 8, and Fort Worth at No. 10. In all, the ranking includes 13 Texas cities. Irving demonstrates the most financial stability of the 13 cities, according to WalletHub, with its financial stress ranking at No. 72.

As with almost every U.S. city, Houston has been whacked by the recession. In September, the metro area's unemployment rate stood at 9.6 percent, up from 8.1 percent the previous month. Compared with the state's three other major metro areas, Houston's September unemployment rate was the highest. The September jobless rate was 6.4 percent in Austin, 7.4 percent in Dallas, 7.6 percent in Fort Worth, and 7.8 percent in San Antonio. The statewide unemployment rate was 8.3 percent, while the nationwide unemployment rate was 7.7 percent.

One of the main drivers of Houston's high unemployment rate is the ongoing slump in the U.S. oil, gas, and chemical industry. A report released October 5 by consulting giant Deloitte showed the nationwide sector shed 107,000 jobs from March to August.

"We will never see oil and gas employment get back to where it was in December 2014. Employment in the industry today is pretty much where it was in 2006," Patrick Jankowski, senior vice president of research at the Houston Partnership, said in June. "Energy has been real good to Houston. It's still a big part of our economy, but we cannot rely on it like we have in the past."

A September report from the Federal Reserve Bank of Dallas noted that the Houston area is in recovery mode, but the pace has slowed, mostly due to weakness in the energy sector. The report says "that while Houston's recovery is likely to continue, it will lag the state."

The report adds that the Houston area had recovered 33 percent of pandemic-era job losses as of August, compared with 42 percent across Texas and 48 percent nationwide.

Of course, the pandemic recession also has hammered the hospitality industry.

During his State of the City address on October 22, Houston Mayor Sylvester Turner said said 196 meetings, conferences, and conventions in the city had been canceled or rescheduled since March. The result: an estimated economic loss of $332 million. The city's hotel occupancy rate stands at a meager 44 percent, according to Turner, with the rate for downtown hotels at only 17 percent.

The pandemic's impact during the rest of 2020 and into 2020 "will be significant for our hospitality community," the mayor said.

Despite the downturn in the energy and hospitality sectors, Turner and others feel optimistic about what's ahead for Houston.

"As we gradually take steps to reopen, we recognize that the full recovery will take several years, but when we work together, we put ourselves in the best position to manage the virus and rebound from it," Turner said. "As we move forward through these unprecedented times, the city's foundation is strong, the city itself is resilient, and the city's future is bright."

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Building Houston

 
 

Progress and feedback will help you reach your organization's DEI goals. Photo via Pexels

Houston is often touted as the most diverse city in the country, but with that comes the responsibility of making sure we are creating inclusive and equitable opportunities that reflect the communities we serve.

With the current state of our country dealing with the COVID-19 pandemic, as well as social and political issues, employers across the city have searched for the right thing to say and do to help their employees and customers during this time when personal feelings and beliefs impact the workplace more now than ever. While there isn't a one-size-fits-all approach to implementing DEI across an organization, here are a few steps and considerations companies can take to ensure DEI is a priority moving forward.

Understand your audience

It's important to understand the perspectives of those you serve. Identifying your audience will help develop a DEI strategy that addresses concerns from multiple lenses. At Houston Methodist, we focus on our patients, employees and the communities we serve. Anyone building a DEI program needs to not only be cognizant of their audience, but also understand their needs in today's climate before spending time and resources to develop initiatives that will address those needs. Ultimately, this will help shape a more impactful approach to DEI within your organization.

Define success

When developing a DEI strategy, success may seem overwhelming or lofty. But, viewing success as progress will help your organization accomplish your goals in a way that employees and other stakeholders will benefit from in the long run.

Set strategic and measurable goals that clearly state what your organization wants to achieve through its DEI efforts. These goals need not be big at the onset; make sure they are attainable. Most importantly, it's critical to revisit your goals on a regular basis and identify gaps, and be willing to pivot, if needed, along the way so your organization eventually reaches its goals. At the hospital, we've developed a DEI dashboard for all departments in our hospitals to help us with setting those measurable goals. Once measurable goals are identified, a DEI scorecard will be used to identify progress for departments and our organization year over year. When people are able to easily track and see progress or gaps, it will make it easier to reach desired goals.

An organization can't be successful with any new type of program if everyone within the organization doesn't understand the importance of DEI in their department and within the company as a whole. Progress often starts with one person. Providing training to employees about the impact that DEI can have on their day-to-day work will help them champion that within the organization. For example, we've launched something at our hospital called "Together We Grow," a training program aimed at building a foundation for what DEI is by exploring everyday scenarios employees may encounter. This program first started with leadership and is now available to all employees within the hospital system.

Establish a timeline

Once measurable goals have been established, develop a timeline for accomplishing those goals. By selecting two or three goals that can be focused on over a particular time period (i.e., six months or one year), your organization can implement targeted programs and best practices to drive the success of DEI for a more long-term plan. It's ok if not every program is up and running within the year; creating milestones along the way will give your organization time to grow its DEI efforts and aspire to something meaningful for your employees, customers or community. The need for DEI doesn't go away, so it's important to continue efforts year-round with a growth mindset.

Evaluate how DEI holistically fits into your business

A DEI department, team or individual can't be successful if the work isn't aligned with the mission of the organization. It does not help if an organization has competing priorities, so DEI goals must be embedded in your organization's business goals.

Additionally, it's also important to have leadership set the tone for the rest of the organization to follow. Executive leaders that fully commit to the organization's DEI efforts and promote transparency, feedback and accountability for those programs will yield the most meaningful and lasting results.

Recognize your ‘why’

As a business, it's important to understand why DEI is important for your organization's success. You need to both be able to understand and articulate the business case for why diversity matters in your organization. Studies like this one from Boston Consulting Group continue to show a positive correlation between workforce diversity, innovation and overall company performance. The workforce is constantly changing and becoming more diverse, so making sure your organization is adapting to those different perspectives and taking into consideration why this work is vital to your employees, customers and your community will help turn DEI ideas into action.

For many health care organizations, health equity has shaped community engagement efforts and programs. Addressing health equity for racial, ethnic and social minorities in the Greater Houston area has been a priority for Houston Methodist for nearly 30 years, and this work has also informed and strengthened our DEI efforts in the communities we serve.

In conclusion, remember progress and feedback will help you reach your organization's DEI goals. For these initiatives to be effective, everyone within your organization must understand that each person plays a role in shaping the success of DEI efforts.

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Arianne Dowdell is vice president, chief diversity, equity and inclusion officer at Houston Methodist.

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