HOUSTON, Texas (KTRK) — New job numbers have one local economist concerned that the market may be heading down the wrong direction.<\/p>\n
Heading into this year, Rice University’s Baker Institute Center for Tax and Budget Policy director, John Diamond, told ABC13 he thought the economy would go over a cliff or in the right direction.<\/p>\n
On Friday, he may have gotten his answer.<\/p>\n
“This is definitely evidence in favor of the cliff,” Diamond explained.<\/p>\n
Diamond is talking about the February jobs report<\/a>. It shows the U.S. lost 92,000 jobs, mainly in health care, government, and information services.<\/p>\n The concern Diamond says isn’t just from last month. Federal figures show the monthly reports have gone back and forth on adding and losing jobs for nearly a year.<\/p>\n “A stagnant labor market just leads to smaller wage gains, or eventually it can lead to worse, a recession in which it becomes harder and harder to find jobs,” Diamond explained.<\/p>\n A way to look at the numbers, Diamond said, is if you’re looking for a job, just know it may be more difficult. If you have a job, he said, you should consider keeping it.<\/p>\n “In general, employers want to keep the people they have hired because they don’t want to go out and find new people,” Diamond explained. “If you’re looking for a job, I would feel worse.”<\/p>\n Diamond said another factor is gas prices. Although Houston is known as the “Energy Capital of the World,” he said what’s happening in the Middle East may not mean more gas jobs.<\/p>\n “They’re not going to out and hire a bunch of people unless this turns into a longer-term situation or prices remain elevated over a longer period,” Diamond said.<\/p>\n Economists said that although February saw job losses, 2026 could still turn around. They said that if certain factors, such as tariffs, conflicts, and gas prices, change, it could lead to growth.<\/p>\n Although with the latest figures, they’re worried the economy could be headed the other way.<\/p>\n For updates on this story, follow Nick Natario on Facebook<\/a>, X<\/a> and Instagram<\/a>.<\/p>\n Copyright \u00a9 2026 KTRK-TV. All Rights Reserved.<\/p>\n