After gaining ground in first quarter 2007, Texas' high-tech sector faltered in the second quarter. According to the employment data released by the Texas Workforce Commission and seasonally adjusted by the Dallas Fed, high-tech employment fell by 3,300 jobs (–4.2 percent) from March through June. Since December 2006, the high-tech industry has trimmed payrolls by 900 workers (–0.6 percent).

Texas' high-tech manufacturing sector continued to retrench in the second quarter (Chart 1). Computer and communications equipment industries posted job losses of 600 each, while the semiconductor industry shed 200 jobs from March to June, bringing the year-to-date decline in the high-tech manufacturing industry to 1,500 jobs (–3.3 percent) (Chart 2).

Chart 1

Chart 2

Texas' high-tech services sector struggled as well in the second quarter, trimming 1,900 positions (Chart 3).  Computer systems design industry, which had been recording employment gains since early 2004, lost 500 jobs. Internet search portals and data processing employment dropped by 800, and employment in the beleaguered telecommunications sector was down 600 in the quarter. On a positive note, high-tech services firms have added 600 workers to payrolls year-to-date.

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