Industrial employment in Texas remained flat over the past year while Houston ranked first in the nation in terms of manufacturing jobs, according to a recent report.

Evanston, Ill.-based Manufacturers' News Inc. (MNI) reports Texas gained 4,579 industrial jobs, representing a half percent increase, from April 2007 to April 2008. The 2008 manufacturing report indicates a smaller increase than posted by the state in prior years. However, Texas is still in a better position than much of the U.S., which suffered significant employment losses over the year.

"Manufacturing output is higher than ever, but employment is stagnant," says Tom Dubin, President of MNI. "So much of Texas' principal industries such as metal fabricating and electronics production, has become automated and made more efficient through technology, that fewer employees are needed to produce these products."

Texas is home to 24,273 manufacturers employing 1,225,585 workers, ranking second in the nation for number of manufacturing jobs and plants, just behind California. The state accounts for 62 percent of the Southwest's manufacturing jobs and 55 percent of the region's manufacturers.

MNI's city data shows Texas' largest manufacturing cities saw drops in industrial employment but still rank among the top 50 in the United States for manufacturing jobs.

Houston alone currently accounts for 222,072 industrial jobs -- comparable to the number of manufacturing jobs for the entire state of Oregon. Houston saw employment drop by 1.6 percent over the year, but still ranks first in the nation for number of manufacturing jobs, according to the report.

Dallas accounts for 92,223 of the state's industrial jobs. Its manufacturing employment declined 2.4 percent over the year and the city ranks seventh in the nation for jobs.