Texas' high-tech sector enjoyed positive growth in third quarter 2007, as job creation in high-tech services outpaced employment losses in high-tech manufacturing. According to figures released by the Texas Workforce Commission, with seasonal and other adjustments made by the Dallas Fed, the state's high-tech industry gained 2,900 jobs—a 3.9 percent annualized increase (see table). The third-quarter gain largely offset a slow first half, and year-to date employment in the sector is up 1,100 jobs (0.5 percent).

Texas high-tech manufacturers continued to struggle in the third quarter, shedding 1,600 jobs (Chart 1). Computer and peripheral equipment and communications equipment jobs were down 100 each, while semiconductor equipment manufacturing employment fell by 1,400 (Chart 2). Year-to-date the sector has shed 4,100 jobs (–6.1 percent).

Chart 1

Chart 2

Texas' high-tech service sector added 4,500 positions from July through September (Chart 3). The increase was dominated by 3,200 jobs created in the computer systems designs and related services industry. The telecommunication sector contributed 1,400 jobs, while Internet service providers, search portals and data processors lost 100 jobs. So far this year employment in the high-tech service sector is up a solid 3.2 percent.

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 have been 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.