The objective of this research was to examine the influence of the main components of the local labor market upon the economic and social welfare of the residents of metropolitan and non-metropolitan municipalities (MM and NMM, respectively) in Puerto Rico. This classification for municipalities is based on the definition used by the Bureau of the Census. The NMM are located mainly in the mountainous central part and on the southern coast. Employment ratios for the main industrial sectors, including agriculture, were established to represent the employment structure of the residents of the municipalities. Socioeconomic indicators were selected from the 1980 census. When metropolitan and non-metropolitan municipalities were compared, the fatter showed less favorable levels for each indicator except for the crime rate. The rate of participation by employment section was also lower except for agricultural employment. The employment structure related to the economic well being in different ways for MM and NMM. Agricultural employment is negatively associated with almost all welfare indicators in MM; but not so in NMM. Manufacture was related to higher income and unemployment reduction in NMM but not in MM. The employment sources related to a higher degree of economic welfare for all municipalities were trade, services and government.