Full text of Fourth Quarter 2005 : Text File, USDL 06-1562
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Technical information: (202) 691-6467 USDL 06-1562
http://www.bls.gov/bdm/
For release: 10:00 A.M. EDT
Media contact: 691-5902 Thursday, September 7, 2006
BUSINESS EMPLOYMENT DYNAMICS: FOURTH QUARTER 2005
From September to December 2005, the number of job gains from opening
and expanding private sector establishments was 7.8 million, and the number
of job losses from closing and contracting establishments was 7.3 million,
according to data released today by the Bureau of Labor Statistics of the
U.S. Department of Labor. Gross job gains exceeded gross job losses in all
sectors, except utilities, information, and other services. (See table 3.)
Firms with 1,000 or more employees accounted for 59.4 percent of the net
gains in employment, representing the largest contribution to employment
growth among all firm size classes. (See tables D and 4.)
The Business Employment Dynamics (BED) data series include gross job
gains and gross job losses at the establishment level by major industry
sector, as well as gross job gains and gross job losses at the firm level
by employer size class.
The change in the number of jobs over time is the net result of increases
and decreases in employment that occur at all businesses in the economy. BED
statistics track these changes in employment at private business units from
the third month of one quarter to the third month of the next. Gross job
gains are the sum of increases in employment from expansions in employment at
existing units and the addition of new jobs at opening units. Gross job losses
are the result of contractions in employment at existing units and the loss of
jobs at closing units. The difference between the number of gross jobs gained
and the number of gross jobs lost is the net change in employment. (See the
Technical Note for more information.)
Private Sector Establishment-Level Gross Job Gains and Job Losses
Opening and expanding private sector business establishments gained 7.8
million jobs in the fourth quarter of 2005, a decrease of 237,000 jobs from
the previous quarter. Over the fourth quarter, expanding establisbments
added 6.3 million jobs, while opening establishments added 1.5 million jobs.
Gross job losses totaled 7.3 million, a decrease of 160,000 from the pre-
vious quarter's job loss total. During the quarter, contracting establish-
ments lost 5.9 million jobs, while closing establishments lost 1.4 million
jobs. (See tables A, 1, and 3.)
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Table A. Three-month private sector gross job gains and losses,
seasonally adjusted
-------------------------------------------------------------------------
| 3 months ended
|--------------------------------------
Category | Dec. | Mar. | June | Sept. | Dec.
| 2004 | 2005 | 2005 | 2005 | 2005
|--------------------------------------
| Levels (in thousands)
----------------------------------|--------------------------------------
| | | | |
Gross job gains...................| 8,081| 7,635| 7,932| 8,055| 7,818
At expanding establishments.....| 6,365| 6,171| 6,311| 6,423| 6,293
At opening establishments.......| 1,716| 1,464| 1,621| 1,632| 1,525
Gross job losses..................| 7,212| 7,310| 7,358| 7,427| 7,267
At contracting establishments...| 5,727| 5,852| 5,873| 5,915| 5,888
At closing establishments.......| 1,485| 1,458| 1,485| 1,512| 1,379
|--------------------------------------
Net employment change (1).........| 869| 325| 574| 628| 551
|--------------------------------------
| Rates (percent)
|--------------------------------------
Gross job gains...................| 7.4| 6.9| 7.2| 7.3| 7.1
At expanding establishments.....| 5.8| 5.6| 5.7| 5.8| 5.7
At opening establishments.......| 1.6| 1.3| 1.5| 1.5| 1.4
Gross job losses..................| 6.7| 6.6| 6.6| 6.8| 6.5
At contracting establishments...| 5.3| 5.3| 5.3| 5.4| 5.3
At closing establishments.......| 1.4| 1.3| 1.3| 1.4| 1.2
|--------------------------------------
Net employment change(1)..........| 0.7| 0.3| 0.6| 0.5| 0.6
| | | | |
-------------------------------------------------------------------------
1 The net employment change is the difference between total gross job
gains and total gross job losses. See the Technical Note for further
information.
From September to December 2005, gross job gains represented 7.1 percent
of private sector employment, while gross job losses represented 6.5 percent
of private sector employment. (See tables A and 2.) These gross job gain
and loss statistics demonstrate that a sizable number of jobs appear and dis-
appear in the relatively short time frame of one quarter.
Major Industry Sector Gross Job Gains and Gross Job Losses
Goods-producing. Expanding and opening establishments in the goods-
producing sector accounted for 1,722,000 jobs gained, and contracting and
closing establishments accounted for 1,606,000 jobs lost. The net gain of
116,000 jobs in the goods-producing sector was the largest net gain in this
sector since first quarter 2000. (See tables B and 3.)
Construction. In construction, gross job gains over the quarter decreased
slightly to 862,000 and gross job losses edged down to 774,000, resulting in
a net gain of 88,000 jobs--the tenth consecutive quarter of net job gains in
this industry.
Manufacturing. Gross job gains in manufacturing increased to a level of
581,000 jobs in the fourth quarter of 2005. The gross job losses of 567,000
were at the lowest level since the start of this data series in the third
quarter of 1992. This resulted in a net job gain of 14,000 in manufacturing;
this is only the fourth quarter of positive net employment change in seven
calendar years for this sector.
- 3 -
Table B. Three-month private sector gross job gains and losses by industry,
seasonally adjusted
(In thousands)
----------------------------------------------------------------------------------
| Gross job gains | Gross job losses
|-----------------------------|-----------------------------
Industry | 3 months ended | 3 months ended
|-----------------------------|-----------------------------
|Dec. |Mar. |June |Sept.|Dec. |Dec. |Mar. |June |Sept.|Dec.
|2004 |2005 |2005 |2005 |2005 |2004 |2005 |2005 |2005 |2005
----------------------|-----|-----|-----|-----|-----|-----|-----|-----|-----|-----
| | | | | | | | | |
Total private (1)...|8,081|7,365|7,932|8,055|7,818|7,212|7,310|7,358|7,427|7,267
Goods-producing.......|1,734|1,720|1,713|1,698|1,722|1,637|1,686|1,679|1,663|1,606
Natural resources | | | | | | | | | |
and mining.........| 296| 307| 288| 265| 279| 275| 284| 285| 265| 265
Construction ........| 848| 844| 859| 868| 862| 747| 806| 786| 782| 774
Manufacturing ......,| 590| 569| 566| 565| 581| 615| 596| 608| 616| 567
Service-providing ....|6,347|5,915|6,219|6,357|6,096|5,575|5,624|5,679|5,764|5,661
Wholesale trade......| 329| 319| 337| 338| 320| 294| 310| 300| 311| 302
Retail trade.........|1,090|1,020|1,047|1,074|1,058| 992| 980| 989|1,063|1,015
Transportation and...| | | | | | | | | |
warehousing.........| 255| 243| 248| 254| 268| 217| 231| 262| 236| 231
Utilities ...........| 11| 15| 15| 13| 14| 15| 15| 18| 12| 16
Information .........| 188| 143| 155| 170| 152| 169| 164| 153| 154| 156
Financial | | | | | | | | | |
activities..........| 497| 452| 475| 480| 472| 451| 443| 439| 413| 434
Professional and | | | | | | | | | |
business services...|1,512|1,370|1,456|1,523|1,432|1,300|1,304|1,332|1,311|1,303
Education and | | | | | | | | | |
health services.....| 802| 741| 800| 811| 766| 647| 704| 701| 691| 699
Leisure and | | | | | | | | | |
hospitality.........|1,204|1,138|1,212|1,202|1,175|1,134|1,131|1,135|1,219|1,165
Other services.......| 299| 302| 309| 297| 289| 310| 297| 300| 309| 296
----------------------------------------------------------------------------------
1 Includes unclassified sector, not shown separately.
Service-providing. In the service-providing sector, gross job gains
totaled 6,096,000 and gross job losses totaled 5,661,000 in the fourth
quarter of 2005. This resulted in a positive net change of 435,000 jobs.
Retail Trade. The retail trade sector gained 1,058,000 jobs and lost
1,015,000 jobs in the fourth quarter of 2005, for a net gain of 43,000.
This was the fifth consecutive quarter of net gains in this sector.
Information. Establishments in the information sector reported a net
loss of 4,000 jobs in the fourth quarter of 2005. Gross job losses in-
creased by 2,000 from the third quarter of 2005 to 156,000 in the fourth
quarter and gross job gains fell by 18,000 to 152,000 over the quarter.
Number of Establishments Gaining and Losing Employment
Another way to look at the dynamics of business activities is to monitor
the number and proportion of business units that are growing and declining.
The fourth quarter of 2005 represented the tenth consecutive quarter where
the number of expanding establishments exceeded the number of contracting
establishments. Out of 6.7 million active private sector establishments,
a total of 1,921,000 establishments gained jobs from September 2005 to
December 2005. (See table C.) Of these, 1,546,000 were expanding estab-
lishments and 375,000 were opening establishments. During the quarter,
1,520,000 establishments contracted and 329,000 establishments closed, re-
sulting in 1,849,000 establishments losing jobs. Overall, the number of
active private sector establishments increased by 46,000 during the quarter.
This change is the difference between the number of opening establishments
and the number of closing establishments.
- 4 -
Table C. Number of private sector establishments by direction of
employment change, seasonally adjusted
(In thousands)
--------------------------------------------------------------------------
| 3 months ended
Category |---------------------------------------
| Dec. | Mar. | June | Sept. | Dec.
| 2004 | 2005 | 2005 | 2005 | 2005
----------------------------------|-------|-------|-------|-------|-------
Establishments gaining jobs.......| 1,909 | 1,851 | 1,897 | 1,924 | 1,921
Expanding establishments......| 1,530 | 1,506 | 1,526 | 1,549 | 1,546
Opening establishments........| 379 | 345 | 371 | 375 | 375
Establishments losing jobs........| 1,787 | 1,851 | 1,836 | 1,825 | 1,849
Contracting establishments....| 1,467 | 1,504 | 1,496 | 1,486 | 1,520
Closing establishments........| 320 | 347 | 340 | 339 | 329
Net establishment change (1)......| 59 | -2 | 31 | 36 | 46
--------------------------------------------------------------------------
1 The net establishment change is the difference between the number of
opening establishments and the number of closing establishments. See the
Technical Note for further information.
Firm-level Gross Job Gains and Gross Job Losses by Size Class
From September to December 2005, firms with 1,000 or more employees ac-
counted for 59.4 percent of the total net change in employment, the largest
share of any size class. This size class had the largest share of gross job
gains (19.1 percent) and the second largest share of gross job losses (15.2
percent). (See tables D and 4.)
Firms with 500-999 employees had the smallest contribution to the total
net change in employment from September to December 2005 (2.1 percent).
This size class experienced an increase in its share of gross job losses
(4.7 percent) and a decrease in its share of gross job gains (4.5 percent).
(See table D.)
In the fourth quarter of 2005, firms with fewer than 500 employees re-
presented 38.5 percent of the total net change in employment, 76.4 percent
of gross job gains, and 80.1 percent of gross job losses. This group's share
of net employment growth fell from the previous quarter when these firms ac-
counted for 51.9 percent of the total net change in employment. (See table D.)
Historically, from September 1992 through December 2005, firms with fewer than
500 employees have accounted, on average, for 64.7 percent of quarterly net em-
ployment growth. (See table E.)
Firms with 1-4 employees continued to have the largest shares of both
job gains at opening firms and job losses at closing firms in the fourth
quarter of 2005. The share of job gains at opening firms for this size
class increased to 60.0 percent, while the share of job losses at closing
firms increased to 55.9 percent. (See table 4.)
- 5 -
Table D. Three-month private sector percentage share(1) of net change, gross job gains, and gross job losses
by firm size class, seasonally adjusted
(Percent)
------------------------------------------------------------------------------------------------------------------
| Share of net change | Share of gross job gains | Share of gross job losses
|-----------------------------|-----------------------------|------------------------------
| 3 months ended | 3 months ended | 3 months ended
Firm size class |-----------------------------|-----------------------------|------------------------------
| Dec.| Mar.| June|Sept.| Dec.| Dec.| Mar.| June|Sept.| Dec.| Dec.| Mar.| June|Sept.|Dec.
| 2004| 2005| 2005|2005 | 2005| 2004| 2005| 2005|2005 | 2005| 2004| 2005| 2005|2005 |2005
-----------------------|-----------|-----|-----------|-----|-----|-----|-----|-----|-----|-----|-----|------------
| | | | | | | | | | | | | | |
1 - 4 employees | 13.4| 2.7| 9.7| 10.4| 14.8| 15.2| 15.5| 15.2| 15.1| 15.5| 15.5| 16.1| 15.7| 15.6| 15.6
5 - 9 employees | 5.8| 2.3| 5.8| 6.7| 2.7| 11.7| 12.1| 11.9| 11.7| 11.7| 12.6| 12.6| 12.5| 12.3| 12.6
10 - 19 employees | 6.4| 5.0| 9.9| 6.8| 3.7| 11.9| 12.3| 12.2| 11.9| 12.0| 12.7| 12.7| 12.4| 12.4| 12.8
20 - 49 employees | 8.5| 11.1| 17.8| 8.3| 5.8| 14.0| 14.4| 14.5| 13.9| 13.9| 14.8| 14.5| 14.2| 14.5| 14.7
50 - 99 employees | 4.7| 10.4| 14.8| 5.4| 4.2| 8.7| 8.9| 9.1| 8.7| 8.7| 9.2| 8.8| 8.6| 9.0| 9.1
100 - 249 employees | 7.1| 17.1| 16.8| 6.5| 3.9| 9.3| 9.5| 9.8| 9.3| 9.1| 9.6| 9.1| 9.2| 9.6| 9.6
250 - 499 employees | 4.8| 12.1| 10.9| 7.7| 3.4| 5.7| 5.7| 5.9| 5.8| 5.5| 5.8| 5.5| 5.4| 5.6| 5.7
500 - 999 employees | 5.3| 7.4| 8.1| 8.3| 2.1| 4.7| 4.6| 4.9| 4.8| 4.5| 4.6| 4.5| 4.6| 4.4| 4.7
1,000 or more employees| 44.0| 31.9| 6.2| 39.8| 59.4| 18.8| 17.0| 16.5| 19.0| 19.1| 15.2| 16.2| 17.4| 16.7| 15.2
------------------------------------------------------------------------------------------------------------------
Total..................|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0
------------------------------------------------------------------------------------------------------------------
1 Share measures the percent of the category represented by each firm size class.
Table E. Average percentage share(1) of gross job gains and gross job losses by
firm size, third quarter 1992-fourth quarter 2005, seasonally adjusted
(Percent)
----------------------------------------------------------------------------------------------
| Firm size class (number of employees)
|-----------------------------------------------------------------------
Category | | | | | | | 100 | 250 | 500 | 1,000
| Total | 1-4 | 5-9 | 10-19| 20-49| 50-99| - | - | - | or
| | | | | | | 249 | 499 | 999 | more
----------------------|-------|------|------|------|------|------|------|------|------|-------
Gross job gains.......| 100.0 | 14.3 | 11.5 | 11.9 | 14.2 | 9.1 | 9.8 | 5.9 | 4.9 | 18.4
Expanding firms.....| 100.0 | 7.0 | 10.6 | 12.0 | 15.1 | 10.0 | 11.1 | 6.8 | 5.7 | 21.7
Opening firms.......| 100.0 | 51.8 | 16.0 | 11.6 | 9.8 | 4.3 | 3.1 | 1.3 | 0.9 | 1.2
| | | | | | | | | |
Gross job losses......| 100.0 | 14.6 | 11.8 | 12.2 | 14.4 | 9.1 | 9.7 | 5.8 | 4.8 | 17.6
Contracting firms...| 100.0 | 7.5 | 11.1 | 12.3 | 15.2 | 10.0 | 10.8 | 6.7 | 5.5 | 20.9
Closing firms.......| 100.0 | 49.2 | 15.5 | 11.7 | 10.3 | 4.8 | 3.9 | 1.8 | 1.2 | 1.6
----------------------------------------------------------------------------------------------
Net change............| 100.0 | 9.9 | 6.6 | 8.1 | 12.1 | 9.2 | 11.5 | 7.3 | 6.0 | 29.3
----------------------------------------------------------------------------------------------
Cumulative share of | | | | | | | | | |
net change..........| | 9.9 | 16.5 | 24.6 | 36.7 | 45.9 | 57.4 | 64.7 | 70.7 | 100.0
----------------------------------------------------------------------------------------------
1 Share measures the percent of the category represented by each firm size class.
- 6 -
More Information
Additional information on gross job gains and gross job losses are
available at the Business Employment Dynamics page on the BLS Web site
at http://www.bls.gov/bdm. This information includes data on the levels
and rates of gross job gains and gross job losses by firm-size class, the
not seasonally adjusted data and other seasonally adjusted time series not
presented in this release, charts of gross job gains and gross job losses
by industry and size class, and frequently asked questions on size-class
data. Additional information about the Business Employment Dynamics data
can be found in the Technical Note of this release or may be obtained by
emailing BDMinfo@bls.gov.
--------------------------------------------------------------------
| Comparing Business Employment Dynamics Data with Current |
| Employment Statistics and Quarterly Census of Employment |
| and Wages Data |
| |
| The net change in employment from Business Employment Dynamics |
| (BED) data series will not match the net change in employment |
| from the monthly Current Employment Statistics (CES) survey. The |
| CES estimates are based on monthly surveys from a sample of estab- |
| lishments, while gross job gains and gross job losses are based |
| on a quarterly census of administrative records. In addition, the |
| CES has a different coverage, excluding the agriculture sector but |
| including establishments not covered by the unemployment insurance |
| program. The net over-the-quarter changes derived by aggregating |
| component series in the BED data may be different from the net em- |
| ployment change estimated from the CES seasonally adjusted total |
| employment series. The intended use of the BED statistics is to |
| show the dynamic labor market flows that underlie the net changes |
| in aggregate employment levels; data users who want to track net |
| changes in aggregate employment levels over time should refer to |
| CES data. |
| |
| BED data have a more limited scope than the Quarterly Census |
| of Employment and Wages (QCEW) data. The data in this release, |
| in contrast to the QCEW data, exclude government employees, pri- |
| vate households (NAICS 814110), and establishments with zero |
| employment. |
| |
| See the Technical Note for further information. |
--------------------------------------------------------------------
- 7 -
Technical Note
The Business Employment Dynamics (BED) data are a product of a federal-
state cooperative program known as Quarterly Census of Employment and Wages
(QCEW), or the ES-202 program. The BED data are compiled by the U.S.
Bureau of Labor Statistics (BLS) from existing quarterly state unemployment
insurance (UI) records. Most employers in the U.S. are required to file
quarterly reports on the employment and wages of workers covered by UI
laws, and to pay quarterly UI taxes. The quarterly UI reports are sent by
the State Workforce Agencies (SWAs) to BLS and form the basis of the BLS
establishment universe sampling frame. These reports also are used to pro-
duce the quarterly QCEW data on total employment and wages and the longitu-
dinal BED data on gross job gains and losses. Other important BLS uses
of the UI reports are in the Current Employment Statistics (CES) program.
(See table below for differences between QCEW, CES, and BED.)
In the BED program, the quarterly UI records are linked across quarters
to provide a longitudinal history for each establishment. The linkage
process allows the tracking of net employment changes at the establishment
level, which in turn allows the estimation of jobs gained at opening and
expanding establishments and jobs lost at closing and contracting establish-
ments.
Differences between QCEW, BED, and CES employment measures
The BLS publishes three different establishment-based employment mea-
sures for any given quarter. Each of these measures--QCEW, BED, and CES--
makes use of the quarterly UI employment reports in producing data; how-
ever, each measure has a somewhat different universe coverage, estimation
procedure, and publication product.
Differences in coverage and estimation methods can result in somewhat
different measures of over-the-quarter employment change. It is important to
understand program differences and the intended uses of the program products.
(See table below.) Additional information on each program can be obtained
from the program Web sites shown in the table.
- 8 -
Summary of Major Differences between QCEW, BED, and CES Employment Measures
---------------------------------------------------------------------------------
| QCEW | BED | CES
-----------|---------------------|----------------------|------------------------
Source |--Count of UI admini-|--Count of longitudi- |--Sample survey:
| strative recods | nally-linked UI ad- | 400,000 establish-
| submitted by 8.7 | ministrative records| ments
| million employers | submitted by 6.8 |
| | million private sec-|
| | tor employers |
-----------|---------------------|----------------------|------------------------
Coverage |--UI and UCFE cover- |--UI Coverage, exclud-|Nonfarm wage and sal-
| age: all employers| ing government, pri-| ary jobs:
| subject to state | vate households, and|--UI Coverage, exclud-
| and federal UI Laws| establishments with | ing agriculture, pri-
| | zero employment | vate households, and
| | | self-employed workers
| | |--Other employment, in-
| | | cluding railroads,
| | | religious organiza-
| | | tions, and other non-
| | | UI-covered jobs
-----------|---------------------|----------------------|------------------------
Publication|--Quarterly |--Quarterly |--Monthly
frequency | -7 months after the| -8 months after the | -Usually first Friday
| end of each quar- | end of each quarter| of following month
| ter | |
-----------|---------------------|----------------------|------------------------
Use of UI |--Directly summarizes|--Links each new UI |--Uses UI file as a sam-
file | and publishes each | quarter to longitu- | pling frame and annu-
| new quarter of UI | dinal database and | ally realigns (bench-
| data | directly summarizes | marks) sample esti-
| | gross job gains and | mates to first quar-
| | losses | ter UI levels
-----------|---------------------|----------------------|------------------------
Principal |--Provides a quarter-|--Provides quarterly |--Provides current month-
products | ly and annual uni- | employer dynamics | ly estimates of employ-
| verse count of es- | data on establish- | ment, hours, and earn-
| tablishments, em- | ment openings, clos-| ings at the MSA, state,
| ployment, and wages| ings, expansions, | and national level by
| at the county, MSA,| and contractions at | industry
| state, and national| the national level |
| levels by detailed | by NAICS supersector|
| industry | and by size of firm |
| |--Future expansions |
| | will include data at|
| | the county, MSA, and|
| | state level |
-----------|---------------------|----------------------|------------------------
Principal |--Major uses include:|--Major uses include: |--Major uses include:
uses | -Detailed locality | -Business cycle | -Principal national
| data | analysis | economic indicator
| -Periodic universe | -Analysis of employ-| -Official time series
| counts for bench- | er dynamics under- | for employment change
| marking sample | lying economic ex- | measures
| survey estimates | pansions and con- | -Input into other ma-
| -Sample frame for | tractions | jor economic indi-
| BLS establishment | An analysis of em- | cators
| surveys | ployment expansion |
| | and contraction by |
| | size of firm |
| | |
-----------|---------------------|----------------------|------------------------
Program |--www.bls.gov/cew/ |--www.bls.gov/bdm/ |--www.bls.gov/ces/
Web sites | | |
---------------------------------------------------------------------------------
- 9 -
Coverage
Employment and wage data for workers covered by state UI and Unemployment
Compensation for Federal Employees (UCFE) laws are compiled from quarterly
contribution reports submitted to the SWAs by employers. In addition to the
quarterly contribution reports, employers who operate multiple establishments
within a state complete a questionnaire, called the "Multiple Worksite Report,"
which provides detailed information on the location of their establishments.
These reports are based on place of employment rather than place of residence.
UI and UCFE coverage is broad and basically comparable from state to state.
Major exclusions from UI coverage are self-employed workers, religious or-
ganizations, most agricultural workers on small farms, all members of the
Armed Forces, elected officials in most states, most employees of railroads,
some domestic workers, most student workers at schools, and employees of cer-
tain small nonprofit organizations.
Gross job gains and gross job losses in this release are derived from lon-
gitudinal histories of over 6.8 million private sector employer reports out
of 8.7 million total reports of employment and wages submitted by states to
BLS in the fourth quarter of 2005. Gross job gains and gross job losses data
in this release do not report estimates for government employees or private
households (NAICS 814110) and do not include establishments with zero employ-
ment over three quarters. Data from Puerto Rico and the Virgin Islands also
are excluded from the national data. As an illustration, the table below
shows, in millions of establishments, the number of establishments excluded
from the gross job gains and gross job losses data in the fourth quarter of
2005:
Number of active establishments included in
Business Employment Dynamics data
Millions
Total establishments QCEW program....................................8.7
Excluded: Public sector.........................................0.3
Private households....................................0.5
Zero employment.......................................1.0
Establishments in Puerto Rico
and the Virgin Islands..............................0.1
Total establishments included in Business
Employment Dynamics data...........................................6.8
Unit of analysis
Establishments are used in the tabulation of the BED statistics by in-
dustry and firms are used in the tabulation of the BED size class sta-
tistics. An establishment is defined as an economic unit that produces
goods or services, usually at a single physical location, and engages in
one or predominantly one activity. A firm is a legal business, either
corporate or otherwise, and may consist of several establishments. Firm-
level data are compiled based on an aggregation of establishments under
common ownership by a corporate parent using employer tax identification
numbers. The firm-level aggregation, which is consistent with the role of
corporations as the economic decision makers, is used for the measurement
of the BED data elements by size class.
Because of the difference in the unit of analysis, total gross job gains
and gross job losses by size class are lower than total gross job gains and
gross job losses by industry, as some establishment gains and losses within
a firm are offset during the aggregation process. However, the total net
changes in employment are the same for not seasonally adjusted data and are
similar for seasonally adjusted data.
- 10 -
Concepts and methodology
The Business Employment Dynamics data measure the net change in employ-
ment at the establishment level. These changes come about in one of four
ways. A net increase in employment can come from either opening units or
expanding units. A net decrease in employment can come from either clos-
ing units or contracting units. Gross job gains include the sum of all
jobs added at either opening or expanding units. Gross job losses include
the sum of all jobs lost in either closing or contracting units. The net
change in employment is the difference between gross job gains and gross
job losses.
The formal definitions of employment changes are as follows:
Openings. These are either units with positive third-month employment for
for the first time in the current quarter, with no links to the prior quarter,
or with positive third-month employment in the current quarter, following zero
employment in the previous quarter.
Expansions. These are units with positive employment in the third month
in both the previous and current quarters, with a net increase in employment
over this period.
Closings. These are units with positive third-month employment in the pre-
vious quarter, with no employment or zero employment reported in the current
quarter.
Contractions. These are units with positive employment in the third month
in both the previous and current quarters, with a net decrease in employment
over this period.
All establishment-level employment changes are measured from the third
month of each quarter. Not all establishments and firms change their em-
ployment levels. Units with no change in emploment count towards estimates
of total employment, but not for levels of gross job gains and gross job
losses.
Gross job gains and gross job losses are expressed as rates by dividing
their levels by the average of employment in the current and previous quar-
ters. This provides a symmetric growth rate. The rates are calculated for
the components of gross job gains and gross job losses and then summed to
form their respective totals. These rates can be added and subtracted just
as their levels can. For instance, the difference between the gross job
gains rate and the gross job losses rate is the net growth rate.
Linkage methodology
Prior to the measurement of gross job gains and gross job losses, QCEW
records are linked across two quarters. The linkage process matches esta-
blishments' unique SWA identification numbers (SWA-ID). Between 95 to 97
percent of establishments identified as continuous from quarter to quarter
are matched by SWA-ID. The rest are linked in one of three ways. The first
method uses predecessor and successor information, identified by the states,
which relates records with different SWA-IDs across quarters. Predecessor
and successor relations can come about for a variety of reasons, including
a change in ownership, a firm restructuring, or a UI account restructuring.
If a match cannot be attained in this manner, a probability-based match is
used. This match attempts to identify two establishments with different SWA-
IDs as continuous. The match is based upon comparisons such as the same
name, address, and phone number. Third, an analyst examines unmatched re-
cords individually and makes a possible match.
In order to ensure the highest possible quality of data, SWAs verify with
employers and update, if necessary, the industry, location, and ownership
classification of all establishments on a 3-year cycle. Changes in establish-
ment classification codes resulting from the verification process are intro-
duced with the data reported for the first quarter of the year. Changes re-
sulting from improved employer reporting also are introduced in the first
quarter.
- 11 -
Sizing methodology
The method of dynamic sizing is used in calculations for the BED size-
class data series. Dynamic sizing allocates each firm's emplyment gain or
loss during a quarter to each respective size class in which the change
occurred. For example, if a firm grew from 2 employees in quarter 1 to 38
employees in quarter 2, then, of the 36-employee increase, 2 would be al-
located to the first size class, 5 to the size class 5 to 9, 10 to size
class 10 to 19, and 19 to size class 20 to 49.
Dynamic sizing provides symmetrical firm-size estimates and eliminates
any systematic effects which may be caused by the transitory and reverting
changes in firms' sizes over time. Additionally, it allocates each job
gain or loss to the actual size class where it occurred.
Seasonal adjustment
Over the course of a year, the levels of employment and the associated
job flows undergo sharp fluctuations due to such seasonal events as changes
in the weather, reduced or expanded production, harvests, major holidays,
and the opening and closing of schools. The effect of such seasonal vari-
ation can be very large.
Because these seasonal events follow a more or less regular pattern each
year, their influence can be eliminated by adjusting these statistics from
quarter to quarter. These adjustments make nonseasonal developments, such as
declines in economic activity, easier to recognize. For example, the large
number of youths taking summer jobs is likely to obscure other changes that
have taken place in June relative to March, making it difficult to determine
if the level of economic activity has risen or declined. However, because
the effect of students finishing school in previous years is known, the
statistics for the current year can be adjusted to allow for a comparable
change. The adjusted figures provide a more useful tool with which to ana-
lyze changes in economic activity.
The employment data series for opening, expanding, closing, and contract-
ing units are independently seasonally adjusted; net changes are calculated
based on the difference between gross job gains and gross job losses. Simi-
larly, for industry data, the establishment counts data series for opening,
expanding, closing, and contracting establishments are independently adjusted,
and the net changes are calculated based on the difference between the number
of opening and closing establishments. Additionally, establishment and em-
ployment levels are independently seasonally adjusted to calculate the sea-
sonally adjusted rates. Concurrent seasonal adjustment is run using X-12
ARIMA. Seasonally adjusted data series for the total private sector are cal-
culated by summing the seasonally adjusted data for all sectors, including
the unclassified sector, which is not published separately.
The net over-the-quarter change derived by summing the BED component series
will differ from the net employment change estimated from the seasonally ad-
justed total private employment series from the CES program. The intended use
of BED statistics is to show the dynamic labor market changes that underlie
the net employment change statistic. As such, data users interested particu-
larly in the net employment change and not in the gross job flows underlying
this change should refer to CES data for over-the-quarter net employment
changes.
Reliability of the data
Since the data series on Business Employment Dynamics are based on admini-
strative rather than sample data, there are no issues related to sampling
error. Nonsampling error, however, still exists. Nonsampling errors can oc-
cur for many reasons, such as the employer submitting corrected employment
data after the end of the quarter or typographical errors made by businesses
when providing information. Such errors, however, are likely to be distri-
buted randomly throughout the dataset.
Changes in administrative data sometimes create complications for the
linkage process. This can result in overstating openings and closings while
understating expansions and contractions. The BLS continues to refine methods
for improving the linkage process to alleviate the effects of these compli-
cations.
The BED data series are subject to periodic minor changes based on correc-
tions in QCEW records, updates on predecessors and successors information, and
seasonal adjustment revisions.
- 12 -
Additional statistics and other information
Several other programs within BLS produce closely related information.
The QCEW program, also known as the ES-202 program, provides both quarterly
and annual estimates of employment by state, county, and detailed industry.
News releases on quarterly county employment and wages are available upon
request from the Division of Administrative Statistics and Labor Turnover,
Bureau of Labor Statistics, U.S. Department of Labor, Washington, DC 20212;
telephone 202-691-6567; (http://www.bls.gov/cew/); (e-mail: QCEWInfo@bls.gov).
The CES program produces monthly estimates of employment, its net change,
and earnings by detailed industry. These estimates are part of the Employ-
ment Situation report put out monthly by BLS.
The Job Openings and Labor Turnover Survey (JOLTS) program provides month-
ly measures of job openings, as well as employee hires and separations.
Information in this release will be made available to sensory impaired in-
dividuals upon request. Voice phone: 202-691-5200; TDD message referral
number: 1-800-877-8339.
Table 1. Private sector gross job gains and job losses, seasonally adjusted
(In thousands)
Gross job gains Gross job losses
Year 3 months ended Net change (1) Total Expanding Opening Total Contracting Closing
establishments establishments establishments establishments
1992 September 455 7,377 5,632 1,745 6,922 5,351 1,571
December 216 7,101 5,465 1,636 6,885 5,487 1,398
1993 March 313 7,309 5,410 1,899 6,996 5,354 1,642
June 786 7,330 5,794 1,536 6,544 5,136 1,408
September 874 7,523 5,881 1,642 6,649 5,316 1,333
December 641 7,436 5,840 1,596 6,795 5,420 1,375
1994 March 517 7,400 5,807 1,593 6,883 5,435 1,448
June 1,021 7,807 6,060 1,747 6,786 5,295 1,491
September 1,175 7,972 6,227 1,745 6,797 5,493 1,304
December 507 7,630 5,998 1,632 7,123 5,647 1,476
1995 March 746 7,782 6,129 1,653 7,036 5,660 1,376
June 402 7,714 6,017 1,697 7,312 5,839 1,473
September 771 7,970 6,291 1,679 7,199 5,680 1,519
December 407 7,877 6,153 1,724 7,470 5,934 1,536
1996 March 460 7,943 6,190 1,753 7,483 5,957 1,526
June 642 8,080 6,302 1,778 7,438 5,894 1,544
September 632 8,189 6,326 1,863 7,557 5,998 1,559
December 861 8,278 6,409 1,869 7,417 5,889 1,528
1997 March 799 8,292 6,448 1,844 7,493 5,900 1,593
June 594 8,098 6,342 1,756 7,504 5,925 1,579
September 854 8,593 6,680 1,913 7,739 5,981 1,758
December 702 8,731 6,727 2,004 8,029 6,068 1,961
1998 March 747 8,788 6,633 2,155 8,041 6,107 1,934
June 666 8,722 6,569 2,153 8,056 6,218 1,838
September 659 8,539 6,574 1,965 7,880 6,161 1,719
December 759 8,576 6,778 1,798 7,817 6,060 1,757
1999 March 380 8,744 6,733 2,011 8,364 6,466 1,898
June 569 8,800 6,788 2,012 8,231 6,419 1,812
September 548 8,817 6,871 1,946 8,269 6,397 1,872
December 1,105 9,144 7,112 2,032 8,039 6,264 1,775
2000 March 818 8,906 6,988 1,918 8,088 6,361 1,727
June 541 8,764 6,975 1,789 8,223 6,509 1,714
September 146 8,724 6,834 1,890 8,578 6,719 1,859
December 336 8,690 6,862 1,828 8,354 6,582 1,772
2001 March -101 8,555 6,768 1,787 8,656 6,756 1,900
June -771 8,254 6,439 1,815 9,025 7,149 1,876
September -1,380 7,749 5,990 1,759 9,129 7,174 1,955
December -871 7,893 6,055 1,838 8,764 6,995 1,769
2002 March -1 8,128 6,324 1,804 8,129 6,400 1,729
June -80 8,050 6,246 1,804 8,130 6,411 1,719
September -211 7,763 6,083 1,680 7,974 6,345 1,629
December -175 7,702 6,059 1,643 7,877 6,267 1,610
2003 March -404 7,472 5,932 1,540 7,876 6,321 1,555
June -142 7,560 6,033 1,527 7,702 6,138 1,564
September 72 7,396 5,897 1,499 7,324 5,893 1,431
December 344 7,646 6,063 1,583 7,302 5,816 1,486
2004 March 435 7,745 6,231 1,514 7,310 5,871 1,439
June 594 7,857 6,292 1,565 7,263 5,726 1,537
September 191 7,789 6,123 1,666 7,598 5,953 1,645
December 869 8,081 6,365 1,716 7,212 5,727 1,485
2005 March 325 7,635 6,171 1,464 7,310 5,852 1,458
June 574 7,932 6,311 1,621 7,358 5,873 1,485
September 628 8,055 6,423 1,632 7,427 5,915 1,512
December 551 7,818 6,293 1,525 7,267 5,888 1,379
1 Net change is the difference between total gross job gains and total gross job losses.
Table 2. Private sector gross job gains and losses, as a percent of employment(1), seasonally adjusted
(Percent)
Gross job gains Gross job losses
Year 3 months ended Net change (2) Total Expanding Opening Total Contracting Closing
establishments establishments establishments establishments
1992 September 0.5 8.3 6.3 2.0 7.8 6.0 1.8
December 0.2 7.9 6.1 1.8 7.7 6.1 1.6
1993 March 0.3 8.1 6.0 2.1 7.8 6.0 1.8
June 0.8 8.1 6.4 1.7 7.3 5.7 1.6
September 0.9 8.2 6.4 1.8 7.3 5.8 1.5
December 0.6 8.0 6.3 1.7 7.4 5.9 1.5
1994 March 0.5 8.0 6.3 1.7 7.5 5.9 1.6
June 1.1 8.4 6.5 1.9 7.3 5.7 1.6
September 1.2 8.4 6.6 1.8 7.2 5.8 1.4
December 0.6 8.0 6.3 1.7 7.4 5.9 1.5
1995 March 0.8 8.1 6.4 1.7 7.3 5.9 1.4
June 0.5 8.0 6.2 1.8 7.5 6.0 1.5
September 0.8 8.2 6.5 1.7 7.4 5.8 1.6
December 0.4 8.1 6.3 1.8 7.7 6.1 1.6
1996 March 0.4 8.1 6.3 1.8 7.7 6.1 1.6
June 0.6 8.2 6.4 1.8 7.6 6.0 1.6
September 0.7 8.3 6.4 1.9 7.6 6.0 1.6
December 0.9 8.3 6.4 1.9 7.4 5.9 1.5
1997 March 0.7 8.2 6.4 1.8 7.5 5.9 1.6
June 0.5 7.9 6.2 1.7 7.4 5.8 1.6
September 0.8 8.4 6.5 1.9 7.6 5.9 1.7
December 0.6 8.4 6.5 1.9 7.8 5.9 1.9
1998 March 0.7 8.5 6.4 2.1 7.8 5.9 1.9
June 0.6 8.4 6.3 2.1 7.8 6.0 1.8
September 0.7 8.2 6.3 1.9 7.5 5.9 1.6
December 0.7 8.1 6.4 1.7 7.4 5.7 1.7
1999 March 0.3 8.2 6.3 1.9 7.9 6.1 1.8
June 0.6 8.3 6.4 1.9 7.7 6.0 1.7
September 0.5 8.2 6.4 1.8 7.7 6.0 1.7
December 1.1 8.5 6.6 1.9 7.4 5.8 1.6
2000 March 0.8 8.2 6.4 1.8 7.4 5.8 1.6
June 0.4 7.9 6.3 1.6 7.5 5.9 1.6
September 0.1 7.9 6.2 1.7 7.8 6.1 1.7
December 0.3 7.9 6.2 1.7 7.6 6.0 1.6
2001 March -0.1 7.7 6.1 1.6 7.8 6.1 1.7
June -0.8 7.4 5.8 1.6 8.2 6.5 1.7
September -1.3 7.1 5.5 1.6 8.4 6.6 1.8
December -0.8 7.3 5.6 1.7 8.1 6.5 1.6
2002 March 0.1 7.6 5.9 1.7 7.5 5.9 1.6
June -0.1 7.5 5.8 1.7 7.6 6.0 1.6
September -0.1 7.3 5.7 1.6 7.4 5.9 1.5
December -0.2 7.1 5.6 1.5 7.3 5.8 1.5
2003 March -0.5 6.9 5.5 1.4 7.4 5.9 1.5
June -0.2 7.0 5.6 1.4 7.2 5.7 1.5
September 0.1 6.9 5.5 1.4 6.8 5.5 1.3
December 0.4 7.2 5.7 1.5 6.8 5.4 1.4
2004 March 0.4 7.2 5.8 1.4 6.8 5.5 1.3
June 0.5 7.2 5.8 1.4 6.7 5.3 1.4
September 0.2 7.2 5.7 1.5 7.0 5.5 1.5
December 0.7 7.4 5.8 1.6 6.7 5.3 1.4
2005 March 0.3 6.9 5.6 1.3 6.6 5.3 1.3
June 0.6 7.2 5.7 1.5 6.6 5.3 1.3
September 0.5 7.3 5.8 1.5 6.8 5.4 1.4
December 0.6 7.1 5.7 1.4 6.5 5.3 1.2
1 The rates measure gross job gains and job losses as a percentage of the average of the previous and current employment.
2 See footnote 1, table 1.
Table 3: Private sector gross job gains and losses by industry, seasonally adjusted
Gross job gains and job losses Gross job gains and job losses
(in thousands) as a percent of employment
Category 3 months ended 3 months ended
Dec. Mar. June Sept. Dec. Dec. Mar. June Sept. Dec.
2004 2005 2005 2005 2005 2004 2005 2005 2005 2005
Total private(1)
Gross job gains 8,081 7,635 7,932 8,055 7,818 7.4 6.9 7.2 7.3 7.1
At expanding establishments 6,365 6,171 6,311 6,423 6,293 5.8 5.6 5.7 5.8 5.7
At opening establishments 1,716 1,464 1,621 1,632 1,525 1.6 1.3 1.5 1.5 1.4
Gross job losses 7,212 7,310 7,358 7,427 7,267 6.7 6.6 6.6 6.8 6.5
At contracting establishments 5,727 5,852 5,873 5,915 5,888 5.3 5.3 5.3 5.4 5.3
At closing establishments 1,485 1,458 1,485 1,512 1,379 1.4 1.3 1.3 1.4 1.2
Net employment change 869 325 574 628 551 0.7 0.3 0.6 0.5 0.6
Goods-producing
Gross job gains 1,734 1,720 1,713 1,698 1,722 7.6 7.5 7.4 7.4 7.4
At expanding establishments 1,440 1,454 1,445 1,427 1,463 6.3 6.3 6.2 6.2 6.3
At opening establishments 294 266 268 271 259 1.3 1.2 1.2 1.2 1.1
Gross job losses 1,637 1,686 1,679 1,663 1,606 7.1 7.3 7.3 7.2 6.8
At contracting establishments 1,340 1,371 1,381 1,371 1,338 5.8 5.9 6.0 5.9 5.7
At closing establishments 297 315 298 292 268 1.3 1.4 1.3 1.3 1.1
Net employment change 97 34 34 35 116 0.5 0.2 0.1 0.2 0.6
Natural resources and mining
Gross job gains 296 307 288 265 279 17.6 17.8 16.7 15.5 16.1
At expanding establishments 244 258 247 224 238 14.5 15.0 14.3 13.1 13.7
At opening establishments 52 49 41 41 41 3.1 2.8 2.4 2.4 2.4
Gross job losses 275 284 285 265 265 16.4 16.5 16.5 15.5 15.2
At contracting establishments 233 233 243 224 226 13.9 13.5 14.1 13.1 13.0
At closing establishments 42 51 42 41 39 2.5 3.0 2.4 2.4 2.2
Net employment change 21 23 3 0 14 1.2 1.3 0.2 0.0 0.9
Construction
Gross job gains 848 844 859 868 862 12.2 11.8 11.9 11.9 11.6
At expanding establishments 676 678 692 699 699 9.7 9.5 9.6 9.6 9.4
At opening establishments 172 166 167 169 163 2.5 2.3 2.3 2.3 2.2
Gross job losses 747 806 786 782 774 10.7 11.3 10.9 10.7 10.5
At contracting establishments 592 642 617 614 618 8.5 9.0 8.6 8.4 8.4
At closing establishments 155 164 169 168 156 2.2 2.3 2.3 2.3 2.1
Net employment change 101 38 73 86 88 1.5 0.5 1.0 1.2 1.1
Manufacturing
Gross job gains 590 569 566 565 581 4.1 4.0 4.0 4.0 4.1
At expanding establishments 520 518 506 504 526 3.6 3.6 3.6 3.6 3.7
At opening establishments 70 51 60 61 55 0.5 0.4 0.4 0.4 0.4
Gross job losses 615 596 608 616 567 4.3 4.2 4.3 4.4 4.0
At contracting establishments 515 496 521 533 494 3.6 3.5 3.7 3.8 3.5
At closing establishments 100 100 87 83 73 0.7 0.7 0.6 0.6 0.5
Net employment change -25 -27 -42 -51 14 -0.2 -0.2 -0.3 -0.4 0.1
Service-providing (1)
Gross job gains 6,347 5,915 6,219 6,357 6,096 7.4 6.9 7.2 7.3 6.9
At expanding establishments 4,925 4,717 4,866 4,996 4,830 5.7 5.5 5.6 5.7 5.5
At opening establishments 1,422 1,198 1,353 1,361 1,266 1.7 1.4 1.6 1.6 1.4
Gross job losses 5,575 5,624 5,679 5,764 5,661 6.5 6.5 6.6 6.6 6.5
At contracting establishments 4,387 4,481 4,492 4,544 4,550 5.1 5.2 5.2 5.2 5.2
At closing establishments 1,188 1,143 1,187 1,220 1,111 1.4 1.3 1.4 1.4 1.3
Net employment change 772 291 540 593 435 0.9 0.4 0.6 0.7 0.4
Wholesale trade
Gross job gains 329 319 337 338 320 5.7 5.6 5.9 5.8 5.5
At expanding establishments 264 259 271 272 263 4.6 4.5 4.7 4.7 4.5
At opening establishments 65 60 66 66 57 1.1 1.1 1.2 1.1 1.0
Gross job losses 294 310 300 311 302 5.2 5.5 5.3 5.4 5.2
At contracting establishments 226 238 228 241 234 4.0 4.2 4.0 4.2 4.0
At closing establishments 68 72 72 70 68 1.2 1.3 1.3 1.2 1.2
Net employment change 35 9 37 27 18 0.5 0.1 0.6 0.4 0.3
Retail trade
Gross job gains 1,090 1,020 1,047 1,074 1,058 7.2 6.7 6.8 7.0 6.9
At expanding establishments 899 865 876 895 884 5.9 5.7 5.7 5.8 5.8
At opening establishments 191 155 171 179 174 1.3 1.0 1.1 1.2 1.1
Gross job losses 992 980 989 1,063 1,015 6.5 6.4 6.5 6.9 6.6
At contracting establishments 834 836 841 888 865 5.5 5.5 5.5 5.8 5.6
At closing establishments 158 144 148 175 150 1.0 0.9 1.0 1.1 1.0
Net employment change 98 40 58 11 43 0.7 0.3 0.3 0.1 0.3
Transportation and warehousing
Gross job gains 255 243 248 254 268 6.3 5.9 6.0 6.2 6.4
At expanding establishments 211 205 203 218 226 5.2 5.0 4.9 5.3 5.4
At opening establishments 44 38 45 36 42 1.1 0.9 1.1 0.9 1.0
Gross job losses 217 231 262 236 231 5.3 5.6 6.4 5.8 5.5
At contracting establishments 171 180 212 188 188 4.2 4.4 5.2 4.6 4.5
At closing establishments 46 51 50 48 43 1.1 1.2 1.2 1.2 1.0
Net employment change 38 12 -14 18 37 1.0 0.3 -0.4 0.4 0.9
Utilities
Gross job gains 11 15 15 13 14 2.0 2.7 2.8 2.4 2.6
At expanding establishments 10 13 13 11 13 1.8 2.3 2.4 2.0 2.4
At opening establishments 1 2 2 2 1 0.2 0.4 0.4 0.4 0.2
Gross job losses 15 15 18 12 16 2.7 2.7 3.2 2.2 2.9
At contracting establishments 13 13 15 11 11 2.3 2.3 2.7 2.0 2.0
At closing establishments 2 2 3 1 5 0.4 0.4 0.5 0.2 0.9
Net employment change -4 0 -3 1 -2 -0.7 0.0 -0.4 0.2 -0.3
Information
Gross job gains 188 143 155 170 152 6.1 4.6 5.1 5.5 4.9
At expanding establishments 152 120 126 141 127 4.9 3.9 4.1 4.6 4.1
At opening establishments 36 23 29 29 25 1.2 0.7 1.0 0.9 0.8
Gross job losses 169 164 153 154 156 5.5 5.3 5.0 5.0 5.1
At contracting establishments 124 123 119 127 121 4.0 4.0 3.9 4.1 4.0
At closing establishments 45 41 34 27 35 1.5 1.3 1.1 0.9 1.1
Net employment change 19 -21 2 16 -4 0.6 -0.7 0.1 0.5 -0.2
Financial activities
Gross job gains 497 452 475 480 472 6.3 5.6 5.9 6.0 5.8
At expanding establishments 373 354 369 371 359 4.7 4.4 4.6 4.6 4.4
At opening establishments 124 98 106 109 113 1.6 1.2 1.3 1.4 1.4
Gross job losses 451 443 439 413 434 5.7 5.6 5.5 5.2 5.4
At contracting establishments 338 331 320 312 329 4.3 4.2 4.0 3.9 4.1
At closing establishments 113 112 119 101 105 1.4 1.4 1.5 1.3 1.3
Net employment change 46 9 36 67 38 0.6 0.0 0.4 0.8 0.4
Professional and business services
Gross job gains 1,512 1,370 1,456 1,523 1,432 9.2 8.2 8.7 9.0 8.4
At expanding establishments 1,198 1,137 1,178 1,242 1,163 7.3 6.8 7.0 7.3 6.8
At opening establishments 314 233 278 281 269 1.9 1.4 1.7 1.7 1.6
Gross job losses 1,300 1,304 1,332 1,311 1,303 7.9 7.8 7.9 7.7 7.6
At contracting establishments 1,001 1,034 1,028 1,006 1,041 6.1 6.2 6.1 5.9 6.1
At closing establishments 299 270 304 305 262 1.8 1.6 1.8 1.8 1.5
Net employment change 212 66 124 212 129 1.3 0.4 0.8 1.3 0.8
Education and health services
Gross job gains 802 741 800 811 766 5.0 4.5 4.9 4.9 4.6
At expanding establishments 658 623 651 677 645 4.1 3.8 4.0 4.1 3.9
At opening establishments 144 118 149 134 121 0.9 0.7 0.9 0.8 0.7
Gross job losses 647 704 701 691 699 4.0 4.3 4.3 4.2 4.2
At contracting establishments 521 570 567 556 572 3.2 3.5 3.5 3.4 3.4
At closing establishments 126 134 134 135 127 0.8 0.8 0.8 0.8 0.8
Net employment change 155 37 99 120 67 1.0 0.2 0.6 0.7 0.4
Leisure and hospitality
Gross job gains 1,204 1,138 1,212 1,202 1,175 9.5 9.0 9.5 9.4 9.2
At expanding establishments 900 877 918 909 893 7.1 6.9 7.2 7.1 7.0
At opening establishments 304 261 294 293 282 2.4 2.1 2.3 2.3 2.2
Gross job losses 1,134 1,131 1,135 1,219 1,165 9.0 8.9 8.9 9.5 9.0
At contracting establishments 900 910 907 961 941 7.1 7.2 7.1 7.5 7.3
At closing establishments 234 221 228 258 224 1.9 1.7 1.8 2.0 1.7
Net employment change 70 7 77 -17 10 0.5 0.1 0.6 -0.1 0.2
Other services
Gross job gains 299 302 309 297 289 7.9 7.9 8.1 7.8 7.6
At expanding establishments 235 241 239 234 231 6.2 6.3 6.3 6.1 6.1
At opening establishments 64 61 70 63 58 1.7 1.6 1.8 1.7 1.5
Gross job losses 310 297 300 309 296 8.2 7.8 7.8 8.1 7.8
At contracting establishments 241 231 234 238 231 6.4 6.1 6.1 6.2 6.1
At closing establishments 69 66 66 71 65 1.8 1.7 1.7 1.9 1.7
Net employment change -11 5 9 -12 -7 -0.3 0.1 0.3 -0.3 -0.2
1 Includes unclassified sector, not shown separately.
Table 4. Private sector percentage share(1) of gross job gains and gross job losses, seasonally adjusted
Category Shares (percent)
3 months ended
Dec. 2004 Mar. 2005 June 2005 Sept. 2005 Dec. 2005
Total Private
Gross job gains 100.0 100.0 100.0 100.0 100.0
Expanding firms 100.0 100.0 100.0 100.0 100.0
Opening firms 100.0 100.0 100.0 100.0 100.0
Gross job losses 100.0 100.0 100.0 100.0 100.0
Contracting firms 100.0 100.0 100.0 100.0 100.0
Closing firms 100.0 100.0 100.0 100.0 100.0
Net employment change 100.0 100.0 100.0 100.0 100.0
Size Class 1 - 4 employees
Gross job gains 15.2 15.5 15.20 15.1 15.5
Expanding firms 7.0 7.2 7.1 6.9 7.2
Opening firms 55.3 55.5 54.9 56.3 60.0
Gross job losses 15.5 16.1 15.7 15.6 15.6
Contracting firms 7.9 8.0 7.8 7.6 8.1
Closing firms 51.7 55.1 54.7 52.9 55.9
Net employment change 13.4 2.7 9.7 10.4 14.8
Size Class 5 - 9 employees
Gross job gains11 11.7 12.1 11.9 11.7 11.7
Expanding firms 10.7 11.1 10.9 10.7 10.9
Opening firms 16.6 17.2 16.9 16.9 16.2
Gross job losses 12.6 12.6 12.5 12.3 12.6
Contracting firms 11.8 11.8 11.6 11.4 11.9
Closing firms 16.1 16.4 16.5 16.1 16.5
Net employment change 5.8 2.3 5.8 6.7 2.7
Size Class 10 - 19 employees
Gross job gains 11.9 12.3 12.2 11.9 12.0
Expanding firms 12.0 12.4 12.3 11.9 12.2
Opening firms 11.5 11.7 11.8 11.7 10.7
Gross job losses 12.7 12.7 12.4 12.4 12.8
Contracting firms 13.0 13.0 12.7 12.6 13.0
Closing firms 11.5 11.1 11.3 11.3 11.3
Net employment change 6.4 5.0 9.9 6.8 3.7
Size Class 20 - 49 employees
Gross job gains 14.0 14.4 14.5 13.9 13.9
Expanding firms 15.1 15.5 15.6 14.9 15.1
Opening firms 8.9 8.9 9.2 8.9 7.9
Gross job losses 14.8 14.5 14.2 14.5 14.7
Contracting firms 16.0 15.8 15.3 15.7 15.9
Closing firms 9.2 8.7 8.8 9.1 8.4
Net employment change 8.5 11.1 17.8 8.3 5.8
Size Class 50 - 99 employees
Gross job gains 8.6 8.9 9.2 8.7 8.7
Expanding firms 9.7 10.0 10.3 9.7 9.7
Opening firms 3.6 3.4 3.5 3.3 3.0
Gross job losses 9.2 8.8 8.7 9.0 9.1
Contracting firms 10.4 9.9 9.7 10.1 10.2
Closing firms 3.8 3.6 3.6 3.7 3.1
Net employment change 4.7 10.4 14.8 5.4 4.2
Size Class 100 - 249 employees
Gross job gains 9.3 9.5 9.8 9.3 9.1
Expanding firms 10.7 11.1 11.3 10.7 10.5
Opening firms 2.3 2.1 2.3 2.0 1.5
Gross job losses 9.6 9.1 9.2 9.6 9.6
Contracting firms 11.0 10.5 10.5 11.1 10.9
Closing firms 2.8 2.8 2.6 2.5 2.2
Net employment change 7.1 17.1 16.9 6.5 3.9
Size Class 250 - 499 employees
Gross job gains 5.6 5.7 5.9 5.8 5.5
Expanding firms 6.6 6.8 6.9 6.8 6.4
Opening firms 0.9 0.7 0.8 0.6 0.4
Gross job losses 5.8 5.4 5.4 5.6 5.7
Contracting firms 6.7 6.3 6.3 6.5 6.6
Closing firms 1.4 1.2 1.0 1.0 0.9
Net employment change 4.8 12.1 10.9 7.7 3.4
Size Class 500 - 999 employees
Gross job gains 4.7 4.6 4.9 4.8 4.5
Expanding firms 5.6 5.5 5.8 5.7 5.3
Opening firms 0.5 0.4 0.3 0.3 0.2
Gross job losses 4.6 4.4 4.6 4.4 4.7
Contracting firms 5.4 5.2 5.4 5.2 5.5
Closing firms 1.0 0.7 0.7 0.8 0.7
Net employment change 5.3 7.4 8.1 8.3 2.1
Size Class 1,000 or more employees
Gross job gains 18.8 17.0 16.5 19.0 19.1
Expanding firms 22.6 20.5 19.8 22.7 22.7
Opening firms 0.4 0.2 0.2 0.0 0.1
Gross job losses 15.2 16.2 17.4 16.7 15.2
Contracting firms 17.8 19.5 20.7 19.7 17.9
Closing firms 2.5 0.4 0.8 2.5 1.0
Net employment change 44.0 31.9 6.2 39.8 59.4
1 Share measures the percent of the category represented by each firm size class.