Bureau of Labor Statistics
FOR FURTHER INFORMATION: FOR RELEASE:
Cheryl Abbot, Regional Economist July 29, 2008
(214) 767-6970
HOUSTON-SUGAR LAND-BAYTOWN JOB GROWTH
HIGHEST AMONG THE 12 LARGEST AREAS NATIONWIDE
Total nonfarm employment in the Houston-Sugar Land-Baytown Metropolitan
Statistical Area stood at 2,619,300 in June 2008, an increase of 54,100 jobs over
the year, the Bureau of Labor Statistics of the U.S. Department of Labor reported
today. From June 2007 to June 2008, nonfarm employment rose 2.1 percent in the
local area compared to a 0.1-percent decline nationwide. Among the 12 largest
metropolitan areas in the country, Houston's rate of job growth led all others,
although it was closely followed by the 2.0-percent gain registered in the
Dallas-Fort Worth-Arlington area. Regional Commissioner Stanley W. Suchman noted
that while the rate of gain in Houston has slowed during the last year, the June
advance continued the trend of over-the-year employment increases that extends
back to March 2004. (See chart A and table 1; Technical Note at end of release
contains metropolitan area definitions. All data in this release are not
seasonally adjusted; accordingly, over-the-year analysis is used throughout.)
Chart A. Total nonfarm employment, over-the-year percent change in the
Houston-Sugar Land-Baytown metropolitan area, January 2001-June 2008
Industry employment
In the Houston area, 10 of 11 industry supersectors added at least 1,000
jobs from June 2007 to June 2008, and 2 of these added more than 10,000. Trade,
transportation, and utilities experienced the largest over-the-year employment
gain at 10,500; Houston's increase of 2.0 percent compared to a national decrease
of 0.7 percent in this supersector. Educational and health services followed
with the addition of 10,100 jobs during the 12-month period, increasing at a 3.6-
percent pace, faster than the nationwide advance of 2.7 percent. The educational
and health services industry accounted for 11 percent of the local workforce, but
made up nearly 19 percent of Houston's job growth from June a year ago.
Chart B. Over-the-year percent change in employment by industry supersector,
United States and the Houston metropolitan area, June 2008
Three other local supersectors recorded gains of more than 5,000 jobs from
June 2007 to June 2008. Employment in Houston's professional and business
services rose by 8,500, or 2.2 percent; this compared to a 0.4-percent decline in
the industry nationally. Public sector employment in the Houston area added
6,000 new jobs, increasing 1.7 percent; nationwide, government grew at a slower
pace, advancing 1.2 percent. The natural resources and mining supersector
continued to register strong growth locally with the addition of 5,200 jobs.
During the 12-month period, employment in this supersector increased 6.1 percent
in Houston, close to the 5.9-percent rate of growth recorded nationwide.
Employment in natural resources and mining accounted for 3.5 percent of the local
workforce in June 2008, but the supersector was responsible for nearly 10 percent
of Houston's over-the-year job growth.
Smaller local gains were registered in construction, leisure and
hospitality, manufacturing, other services, and financial activities. The only
Houston supersector to increase at a slower-than-average pace when compared to
the nation was leisure and hospitality, though the difference was not large, 1.4
percent locally versus 1.6 percent nationwide.
Employment in the 12 largest areas
The Houston-Sugar Land-Baytown area was one of the nation's 12 largest
metropolitan statistical areas in June 2008. Seven of these 12 areas experienced
over-the-year job growth; in contrast, employment declined 0.1 percent for the
nation as a whole. Houston-Sugar Land-Baytown registered the fastest rate of
gain, up 2.1 percent from June 2007, closely followed by Dallas-Fort Worth-
Arlington, up 2.0 percent. The other five areas experiencing employment growth
during the 12-month period were: Boston-Cambridge-Quincy and Washington-
Arlington-Alexandria (both at 0.8 percent), Atlanta-Sandy Springs-Marietta (0.7
percent), New York-Northern New Jersey-Long Island (0.2 percent), and
Philadelphia-Camden-Wilmington (0.1 percent). (See chart C.)
Of the five remaining metropolitan areas, Chicago-Naperville-Joliet,
registered no job growth. Employment declined in the other four areas: San
Francisco-Oakland-Fremont (-0.3 percent), Miami-Fort Lauderdale-Pompano Beach
(-0.7 percent), Los Angeles-Long Beach-Santa Ana (-0.9 percent), and Detroit-
Warren-Livonia (-1.7 percent).
Dallas, the area with the second fastest growth rate in June 2008, added the
largest number of jobs over the year, 57,800, followed closely by Houston with
the addition of 54,100 jobs. Washington, D.C. was a more distant third, adding
25,300 to its count. The largest declines in employment occurred in Los Angeles
(-48,900) and Detroit (-34,800).
Chart C. Over-the-year percent change in employment, 12 largest metropolitan
areas and the United States, June 2008
Additional information
For personal assistance or further information on the Current Employment
Statistics program, as well as other Bureau programs, contact the Southwest
Information Office at 214-767-6970 from 8:00 a.m. to 11:00 a.m. and 1:00 p.m. to
4:00 p.m. Information in this release will be made available to sensory impaired
individuals upon request. Voice phone: 202-691-5200; TDD message referral phone:
1-800-877-8339.
Technical Note
This release presents nonfarm payroll employment estimates from the Current
Employment Statistics (CES) program. The CES survey is a Federal-State
cooperative endeavor in which State employment security agencies prepare the data
using concepts, definitions, and technical procedures prescribed by the Bureau of
Labor Statistics.
Employment Definition. Employment data refer to persons on establishment
payrolls who receive pay for any part of the pay period that includes the 12th of
the month. Persons are counted at their place of work rather than at their place
of residence; those appearing on more than one payroll are counted on each
payroll. Industries are classified on the basis of their principal activity in
accordance with the 2007 version of the North American Industry Classification
System.
Method of estimation. The employment data are estimated using a "link
relative" technique in which a ratio (link relative) of current-month employment
to that of the previous month is computed from a sample of establishments
reporting for both months. The estimates of employment for the current month are
obtained by multiplying the estimates for the previous month by these ratios.
Small-domain models are used as the official estimators for the approximately 39
percent of CES published series which have insufficient sample for direct sample-
based estimates.
Annual revisions. Employment estimates are adjusted annually to a complete
count of jobs, called benchmarks, derived principally from tax reports that are
submitted by employers who are covered under state unemployment insurance (UI)
laws. The benchmark information is used to adjust the monthly estimates between
the new benchmark and the preceding one and also to establish the level of
employment for the new benchmark month. Thus, the benchmarking process
establishes the level of employment, and the sample is used to measure the month-
to-month changes in the level for the subsequent months.
Reliability of the estimates. The estimates presented in this release are
based on sample survey, administrative data, and modeling and, thus, are subject
to sampling and other types of errors. Sampling error is a measure of sampling
variability—that is, variation that occurs by chance because a sample rather than
the entire population is surveyed. Survey data also are subject to nonsampling
errors, such as those which can be introduced into the data collection and
processing operations. Estimates not directly derived from sample surveys are
subject to additional errors resulting from the specific estimation processes
used. The sums of individual items may not always equal the totals shown in the
same tables because of rounding.
Employment estimates. Measures of sampling error are available for state
CES data at the total nonfarm and supersector level and for metropolitan area CES
data. Information on recent benchmark revisions for states is available on the
BLS Web site at www.bls.gov/sae/.
Area definitions. The substate area data published in this release reflect
the standards and definitions established by the U.S. Office of Management and
Budget on November 20, 2007. A detailed list of the geographic definitions is
available at www.whitehouse.gov/omb/bulletins/fy2008/b08-01.pdf.
The Houston-Sugar Land-Baytown Metropolitan Statistical Area (MSA) includes
Austin, Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery,
San Jacinto, and Waller Counties in Texas.
________________________________________________________________________________________________
Table 1. Employees on nonfarm payrolls by industry supersector, U.S. and Houston metropolitan area, not seasonally adjusted (numbers in thousands)
Area and Industry
June
2007
Apr
2008
May
2008
June
2008(p)
Change from June
2007 to June 2008
Number
Percent
U.S.
Total nonfarm
138,791
137,730
138,383
138,624
-167
-0.1
Natural resources and mining
733
743
758
776
43
5.9
Construction
7,913
7,125
7,305
7,433
-480
-6.1
Manufacturing
13,990
13,544
13,564
13,632
-358
-2.6
Trade, transportation, and utilities
26,662
26,274
26,395
26,482
-180
-0.7
Information
3,055
3,003
3,009
3,020
-35
-1.1
Financial activities
8,383
8,206
8,227
8,278
-105
-1.3
Professional and business services
18,133
18,000
17,980
18,068
-65
-0.4
Educational and health services
18,137
18,924
18,867
18,633
496
2.7
Leisure and hospitality
14,049
13,581
13,902
14,272
223
1.6
Other services
5,573
5,532
5,552
5,603
30
0.5
Government
22,163
22,798
22,824
22,427
264
1.2
Houston-Sugar Land-Baytown, TX
Total nonfarm
2,565.2
2,597.3
2,606.1
2,619.3
54.1
2.1
Natural resources and mining
85.4
88.4
89.2
90.6
5.2
6.1
Construction
199.9
201.9
201.9
203.3
3.4
1.7
Manufacturing
234.7
236.0
235.7
237.8
3.1
1.3
Trade, transportation, and utilities
519.8
524.5
525.4
530.3
10.5
2.0
Information
37.2
36.9
36.9
37.1
-0.1
-0.3
Financial activities
145.7
145.8
146.1
147.5
1.8
1.2
Professional and business services
383.5
386.9
388.3
392.0
8.5
2.2
Educational and health services
281.1
289.8
291.2
291.2
10.1
3.6
Leisure and hospitality
236.6
232.4
235.4
239.8
3.2
1.4
Other services
94.9
95.8
96.2
97.3
2.4
2.5
Government
346.4
358.9
359.8
352.4
6.0
1.7
