Texas’ high-tech sector remained on track in the fourth quarter of 2007. Texas high-tech employment increased by 2,400 jobs (3.2 percent), according to the data released by the Texas Workforce Commission, with seasonal and other adjustments made by the Dallas Fed (see table). The fourth-quarter increase took 2007 gains in the sector to 3,100 jobs (1 percent).

The high-tech manufacturing sector remained in a tailspin, with the industry creating a mere 100 positions (0.5 percent) in the fourth quarter (Chart 1). Payrolls in communications equipment manufacturing and semiconductor manufacturing grew by 100 jobs and 200 jobs, respectively, while computer and peripheral equipment manufacturing employment dropped by 200 jobs (Chart 2), bringing 2007 declines in the high-tech manufacturing industry to 4,400 jobs (–4.9 percent).

Chart 1

Chart 2

Texas’ high-tech service firms fared better during the quarter with an overall gain of 2,300 jobs—a 4.2 percent increase (Chart 3). The computer system design services industry posted the strongest growth at 7 percent (1,600 jobs) and was followed by 3.4 percent employment growth (800 jobs) in telecommunication services. Payrolls in the Internet service provider, search portal and data processing sector contracted by 100 jobs (–1.4 percent) during the quarter. In 2007, the high-tech service industry registered a healthy 3.5 percent employment gain, creating 7,500 jobs.

Chart 3

Notes All data are seasonally adjusted by the Federal Reserve Bank of Dallas. For more information on the necessity of seasonally adjusting economic data, see DataBasics, “Seasonally Adjusting Data.” The employment data used in this analysis are benchmarked to second quarter 2007 by the Federal Reserve Bank of Dallas. NAICS 2007 codes are different than NAICS 2002 codes for some industries, including information services. This restructuring within the information services sector has affected the employment totals in the telecommunications, internet service providers, web search portals, and internet publishing and broadcasting industries. For additional information or questions, please contact Laila Assanie at (214) 922-5191.