Total nonfarm employment for the Kansas City, Mo.-Ks., Metropolitan Statistical Area (MSA) stood at 989,800 in August 2012, up 13,300 or 1.4 percent, from August 2011 to August 2012 the U.S. Bureau of Labor Statistics reported today. During the same period, nonfarm employment nationwide also rose 1.4 percent. Regional Commissioner Stanley W. Suchman noted that this was the 24th consecutive month of over-the-year job gains in the Kansas City metropolitan area.

The Kansas City metropolitan area is comprised of two separately identifiable employment centers—the Missouri portion and the Kansas portion of the MSA. The Missouri portion, which had 56 percent of the area’s workforce, added 4,200 jobs (0.8 percent) from August 2011. The Kansas portion, with 44 percent of the area’s workforce, gained 9,100 jobs (2.1 percent) and accounted for over two-thirds of the MSA’s employment growth. (See chart 1 and table 1; Technical Note at end of release contains metropolitan area definitions. Data in this release are not seasonally adjusted; accordingly, analysis is based on over-the-year comparisons.)

In the Kansas City metropolitan area, professional and business services experienced the largest increase in employment, gaining 9,900 jobs from August 2011 to August 2012. Both sides of the metropolitan area contributed to the expansion with the Missouri portion adding 5,500 jobs and the Kansas portion, 4,400. This supersector’s rate of job growth was 6.6 percent in the local area, more than twice the national rate of 3.2 percent. Leisure and hospitality registered the second largest gain in employment in the Kansas City area, up 4,500 from August a year ago. Job growth in this supersector was similar in both portions of the MSA, as the Kansas side added 2,400 jobs and the Missouri side, 2,100 jobs. The metropolitan area’s rate of job growth for this supersector, 4.5 percent, outpaced the 2.2-percent rate for the nation.

Manufacturing employment rose by 1,900 over the year. Growth for this supersector was heavily concentrated on the Kansas side of the MSA with the addition of 1,400 jobs. Locally, manufacturing employment increased 2.5 percent, compared to the national growth rate of 1.7 percent. Employment in education and health services expanded by 1,300 jobs over the year, with all of the growth occurring in the Kansas portion (1,800). Employment in education and health services rose 1.0 percent in the MSA and 2.2 percent nationwide. Government employment increased by 1,200 from August 2011 led by the addition of 1,100 jobs on the Kansas side of the metropolitan area. This supersector’s rate of job growth in the MSA, at 0.9 percent, contrasted with the national decline of 0.7 percent.

Over the year, three supersectors in the Kansas City area experienced declines of more than 1,000 jobs. Mining, logging, and construction registered the largest decrease in employment, shedding 2,800 jobs. Losses in this supersector were equally distributed between both sides of the metropolitan area, as the Missouri and Kansas portions each lost 1,400 jobs. Employment in the information supersector declined by 1,700, with 1,000 jobs shed on the Kansas side of the MSA. Locally, employment in information contracted 6.0 percent while nationally it grew 1.0 percent over the year. Trade, transportation, and utilities lost 1,100 jobs with all of the losses occurring on the Missouri side of the metropolitan area. Nationwide, employment in trade, transportation, and utilities expanded by 1.2 percent while employment in the Kansas City MSA declined 0.6 percent since August 2011.

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 between State employment security agencies and 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 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 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.

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 are also 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 special 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 for state CES data at the supersector level are available on the BLS Web site at www.bls.gov/sae/790stderr.htm. Information on recent benchmark revisions for states is available 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 December 1, 2009. A detailed list of the geographic definitions is available at www.bls.gov/lau/lausmsa.htm.

The Kansas City, Mo.-Ks. Metropolitan Statistical Area (MSA) includes Bates, Caldwell, Cass, Clay, Clinton, Jackson, Lafayette, Platte, and Ray Counties in Missouri; Franklin, Johnson, Leavenworth, Linn, Miami, and Wyandotte Counties in Kansas.

• The Kansas City, Mo. portion includes Bates, Caldwell, Cass, Clay, Clinton, Jackson, Lafayette, Platte, and Ray Counties in Missouri.
• The Kansas City, Ks. portion includes Franklin, Johnson, Leavenworth, Linn, Miami, and Wyandotte Counties in Kansas.

Additional information

More complete information on the technical procedures used to develop these estimates and additional data appear in Employment and Earnings, which is available on line at www.bls.gov/opub/ee/home.htm. Industry employment data for states and metropolitan areas from the Current Employment Statistics program are also available in the above mentioned news releases and from the Internet at www.bls.gov/sae/.

For personal assistance or further information on the Current Employment Statistics program, as well as other Bureau programs, contact the Mountain-Plains BLS information office at (816) 285-7000 from 9:00 a.m. to 12:00 p.m. and 1:00 p.m. to 4:00 p.m. CT.

Last Modified Date: October 3, 2012