Western Information Office

Employment in the 12 Largest Areas

San Francisco-Oakland-Fremont, Calif., was 1 of the nation’s 12 largest metropolitan statistical areas in April 2008. Eight of these areas experienced over-the-year job growth greater than the national increase of 0.3 percent. Houston-Sugar Land-Baytown, Texas, registered the fastest rate of gain, up 2.8 percent from April 2007 to April 2008, followed by Dallas-Fort Worth-Arlington, up 2.3 percent. The other six areas with above-average growth were: Atlanta-Sandy Springs-Marietta, Ga. (1.2 percent), Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va., and Boston-Cambridge-Quincy, Mass.-N.H. (1.0 percent each); San Francisco-Oakland-Fremont, Calif. (0.8 percent), New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa. (0.7 percent), and Philadelphia-Camden, Wilmington, Pa.-N.J.-Del., (0.4 percent). Job growth in Chicago-Naperville-Joliet, Ill.-Ind.-Wis., equaled the national increase of 0.3 percent. (See chart C.)

Three areas lost jobs from April 2007: Los Angeles-Long Beach-Santa Ana, Calif., (-0.3 percent), Miami-Fort Lauderdale-Pompano Beach, Fla. (-0.6 percent), and Detroit-Warren-Livonia, Mich. (-2.6 percent).

The fastest growing industry supersector did not vary a lot among the 12 largest areas from April 2007 to April 2008. Education and health services had the highest percentage increase in employment in seven areas among those industries adding at least 1,000 jobs: Atlanta, Boston, Chicago, Detroit, Los Angeles, Miami, and Philadelphia. In Washington, D.C., education and health services tied with other services as the fastest-growing industry. Among those industries losing at least 1,000 jobs from April a year ago, manufacturing had the largest percentage decline in 5 of the 12 areas (Boston, Dallas, Detroit, New York and Philadelphia), and financial activities in 3 others (Atlanta, Los Angeles, and San Francisco).

The two metropolitan areas with the fastest rates of growth – Houston and Dallas – also added the most jobs. Employment grew by 71,100 in Houston and 66,800 in Dallas from April 2007 to April 2008. The only other area in which employment rose by more than 50,000 over the year was New York (57,600). By contrast, one area lost over 50,000 jobs—Detroit, down 50,900 since April 2007

In 9 of the 12 areas – Atlanta, Boston, Chicago, Dallas, Detroit, Los Angeles, Miami, New York, and Philadelphia – education and health services added the most jobs. In San Francisco and Washington, the professional and business services supersector had the largest numerical increase. The trade, transportation, and utilities supersector added the most jobs in the Houston area.

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.

Definitions. Employment data refer to persons on establishment payrolls who receive pay for any part of the pay period which includes the 12th of the month. Persons are counted at their place of work rather than at their places 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 2002 version of the North American Industry Classification System (NAICS).

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 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 which 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.