Texas’ high-tech sector recorded positive growth in the first quarter of 2007. According to data compiled by the Texas Workforce Commission and seasonally adjusted by the Dallas Fed, overall high-tech employment posted gains of 2,900 jobs (a 3.9 percent annualized increase) in the three months ending in March (see table).

Employment growth in the high-tech manufacturing sector remained flat during the quarter (Chart 1). Job declines of 300 in communications equipment and 100 in computer equipment manufacturing outweighed gains (300) in semiconductor manufacturing employment, leaving overall high-tech manufacturing jobs nearly even with December 2006 levels (Chart 2).

Chart 1

Chart 2

The high-tech services sector fared better, creating 3,000 new positions over the past three months. The computer systems design and related services sector added 4,300 workers, while Internet service providers contributed 500 jobs (Chart 3). Nevertheless, layoffs continued in the beleaguered telecommunications sector, where employment fell by 1,800 in the first quarter.

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 third quarter 2006 by the Federal Reserve Bank of Dallas. For additional information or questions, please contact Laila Assanie at (214) 922-5191.