Technical Information: (202) 691-6553 USDL 09-0978
http://www.bls.gov/bdm/
For release: 10:00 A.M. EDT
Media Contact: (202) 691-5902 Wednesday, August 19, 2009
BUSINESS EMPLOYMENT DYNAMICS: FOURTH QUARTER 2008
From September 2008 to December 2008 the number of job gains from
opening and expanding private sector establishments was 6.7 million,
and the number of job losses from closing and contracting establishments
was 8.5 million, according to data released today by the Bureau of Labor
Statistics of the U.S. Department of Labor. (See tables A, 1 and 3.)
Over this period, gross job losses exceeded gross job gains in all
but two industry sectors: utilities and education and health services.
(See tables B and 3.)
The Business Employment Dynamics (BED) data series include gross job
gains and gross job losses at the establishment level by major
industry sector and for the 50 states, the District of Columbia,
Puerto Rico, and the Virgin Islands, 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 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.)
Table A. Three-month private sector gross job gains and losses,
seasonally adjusted
------------------------------------------------------------------------
| 3 months ended
|-------------------------------------
| Dec. | Mar. | June | Sept.| Dec.
Category | 2007 | 2008 | 2008 | 2008 | 2008
|-------------------------------------
| Levels (in thousands)
----------------------------------|-------------------------------------
| | | | |
Gross job gains...................| 7,676| 7,130| 7,258| 6,822| 6,712
At expanding establishments.....| 6,220| 5,731| 5,858| 5,504| 5,367
At opening establishments.......| 1,456| 1,399| 1,400| 1,318| 1,345
| | | | |
Gross job losses..................| 7,366| 7,400| 7,751| 7,754| 8,467
At contracting establishments...| 6,010| 6,047| 6,277| 6,383| 6,977
At closing establishments.......| 1,356| 1,353| 1,474| 1,371| 1,490
| | | | |
Net employment change (1).........| 310| -270| -493| -932|-1,755
|-------------------------------------
| Rates (percent)
|-------------------------------------
Gross job gains...................| 6.8| 6.2| 6.4| 6.1| 6.0
At expanding establishments.....| 5.5| 5.0| 5.2| 4.9| 4.8
At opening establishments.......| 1.3| 1.2| 1.2| 1.2| 1.2
| | | | |
Gross job losses..................| 6.5| 6.5| 6.8| 6.9| 7.6
At contracting establishments...| 5.3| 5.3| 5.5| 5.7| 6.3
At closing establishments.......| 1.2| 1.2| 1.3| 1.2| 1.3
| | | | |
Net employment change (1).........| .3| -.3| -.4| -.8| -1.6
------------------------------------------------------------------------
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.
Private Sector Establishment-Level Gross Job Gains and Gross Job Losses
Opening and expanding private sector business establishments gained
6.7 million jobs in the fourth quarter of 2008, a decrease of 110,000
from the previous quarter. Over the quarter, expanding establishments
added 5.4 million jobs while opening establishments added 1.3 million
jobs.
Gross job losses totaled 8.5 million, an increase of 713,000 from the
previous quarter. During the quarter, contracting establishments lost
7.0 million jobs, while closing establishments lost 1.5 million jobs.
(See tables A, 1, and 3.)
The difference between the number of gross jobs gained and the number
of gross jobs lost yielded a net change of -1,755,000 jobs in the
private sector for fourth quarter 2008.
Gross job gains represented 6.0 percent of private sector employment,
while gross job losses represented 7.6 percent of private sector
employment. (See tables A and 2.)
Major Industry Sector Gross Job Gains and Gross Job Losses
From September 2008 to December 2008, gross job losses exceeded gross
job gains in all but two industry sectors: utilities and education and
health services. (See tables B and 3.)
Goods-producing. Expanding and opening establishments in the goods-
producing sectors accounted for 1,302,000 jobs gained, and contracting
and closing establishments accounted for 2,063,000 jobs lost. This
net loss of 761,000 jobs was the tenth consecutive quarter of net loss
for these sectors of the economy.
Construction. In construction, gross job gains fell over the quarter
to 639,000. This was the lowest level of gross job gains since the
series began in third quarter of 1992. The construction sector
experienced a net loss of 337,000 jobs, as gross job losses increased by
100,000 to 976,000. This was the seventh consecutive quarter of net job
losses in this sector.
Manufacturing. Gross job gains fell to 378,000 while gross job
losses increased to 801,000. The net loss of 423,000 jobs was the tenth
consecutive quarter of net job losses in the manufacturing sector.
Service-providing. In the service-providing sectors, gross job gains
decreased to 5,410,000 and gross job losses increased to 6,404,000,
resulting in a net loss of 994,000 jobs. Job gains at expanding
establishments decreased to 4,280,000 jobs, while job losses at
contracting establishments increased to 5,226,000 jobs.
Retail Trade. In retail trade, gross job gains decreased to
835,000. Gross job losses increased to 1,181,000 for a net loss of
346,000 jobs. This was the largest net loss in this industry since the
series began in 1992, driven by the lowest total of gross job gains in
the history of this series.
Education and Health Services. Gross job gains increased to 841,000
jobs in the fourth quarter, while gross job losses decreased to 665,000.
This industry sector is the only one which has experienced a net
positive change in every quarter since this series began in 1992.
Financial Activities. Gross job losses exceeded gross job gains in
the financial sector for the seventh consecutive quarter. Altough gross
job gains increased to 388,000, gross job losses also increased to
497,000, resulting in a net loss of 109,000 jobs in the fourth quarter.
Table B. Three-month private sector gross job gains and losses by industry,
seasonally adjusted
(In thousands)
-----------------------------------------------------------------------------------
| Gross job gains | Gross job losses
| (3 months ended) | (3 months ended)
Industry |-----------------------------|-----------------------------
|Dec. |Mar. |June |Sept.|Dec. |Dec. |Mar. |June |Sept.|Dec.
|2007 |2008 |2008 |2008 |2008 |2007 |2008 |2008 |2008 |2008
-----------------------|-----|-----|-----|-----|-----|-----|-----|-----|-----|-----
| | | | | | | | | |
Total private (1)....|7,676|7,130|7,258|6,822|6,712|7,366|7,400|7,751|7,754|8,467
Goods-Producing.......|1,573|1,493|1,494|1,397|1,302|1,701|1,758|1,778|1,767|2,063
Natural resources | | | | | | | | | |
and mining.........| 292| 274| 280| 274| 285| 261| 293| 268| 255| 286
Construction ........| 784| 763| 737| 698| 639| 875| 869| 922| 876| 976
Manufacturing .......| 497| 456| 477| 425| 378| 565| 596| 588| 636| 801
Service-Providing (1).|6,103|5,637|5,764|5,425|5,410|5,665|5,642|5,973|5,987|6,404
Wholesale trade......| 321| 294| 295| 272| 259| 301| 306| 314| 313| 364
Retail trade ........|1,022| 954| 939| 892| 835|1,011| 979|1,080|1,062|1,181
Transportation and | | | | | | | | | |
warehousing........| 254| 208| 225| 208| 238| 229| 250| 253| 250| 283
Utilities............| 15| 13| 16| 14| 13| 11| 10| 12| 13| 12
Information..........| 145| 154| 162| 135| 137| 155| 153| 161| 168| 191
Financial activities.| 432| 412| 394| 376| 388| 486| 436| 455| 460| 497
Professional and | | | | | | | | | |
business services..|1,440|1,239|1,345|1,231|1,234|1,337|1,358|1,433|1,411|1,619
Education and | | | | | | | | | |
health services....| 814| 785| 788| 799| 841| 666| 667| 715| 706| 665
Leisure and | | | | | | | | | |
hospitality........|1,247|1,158|1,183|1,114|1,111|1,148|1,154|1,218|1,259|1,235
Other services.......| 296| 290| 300| 280| 265| 287| 289| 293| 307| 322
-----------------------------------------------------------------------------------
1 Includes unclassified sector, not shown separately.
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. In the fourth quarter of 2008, the number of
establishments losing jobs exceeded the number of establishments
gaining jobs.
Of the 7.0 million active private-sector establishments, a total of
2,091,000 establishments lost jobs from September 2008 to December 2008.
(See table C.) Of these establishments, 1,686,000 were contracting
establishments and 405,000 were closing establishments. Of the
establishments gaining jobs, 1,376,000 establishments were expanding
and 368,000 establishments were opening, resulting in 1,744,000
establishments gaining jobs.
The number of closing establishments exceeded the number of opening
establishments, resulting in a net loss of 37,000 private-sector
establishments during the quarter. This was the seventh quarter that
there has been a net decline in the number of establishments since 1992,
and the fifth time a decline occurred in the past seven quarters.
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.
| 2007 | 2008 | 2008 | 2008 | 2008
----------------------------------|-------|-------|------|------|--------
Establishments gaining jobs.......| 1,940| 1,874| 1,834| 1,788| 1,744
Expanding establishments........| 1,558| 1,517| 1,479| 1,439| 1,376
Opening establishments..........| 382| 357| 355| 349| 368
| | | | |
Establishments losing jobs........| 1,935| 1,976| 2,024| 1,987| 2,091
Contracting establishments......| 1,575| 1,596| 1,633| 1,608| 1,686
Closing establishments..........| 360| 380| 391| 379| 405
| | | | |
Net establishment change (1)......| 22| -23| -36| -30| -37
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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.
Establishment Births and Deaths
From September 2008 to December 2008, a total of 189,000 new private
sector nonfarm business establishments created 794,000 jobs. This was
2,000 more establishment births than in the prior quarter, but 19,000
fewer jobs were gained from these births. The jobs created by these new
establishments represent 11.8 percent of total gross job gains. The
historical time series of birth data shows the number of establishment
births has remained around 200,000 every quarter, while employment from
births dropped from a high of 1.3 million in the first quarter 1998 to a
low of 794,000 in the fourth quarter of 2008. (See Table 7.)
Gross Job Gains and Losses by State
In the fourth quarter of 2008, Louisiana and North Dakota
experienced net employment growth, while 48 states, the District of
Columbia, Puerto Rico, and the Virgin Islands experienced net job
losses. Alabama, Indiana, Michigan, Nevada, and South Carolina showed
rates of gross job gains below the U.S. rate of 6.0 percent and rates
of gross job losses above the U.S. rate of 7.6 percent. (See tables 5
and 6.)
Firm-level Gross Job Gains and Gross Job Losses by Size Class
From September 2008 to December 2008, the share of gross job gains
accounted for by firms with 1 to 4 employees rose from 16.1 to 16.8
percent. Firms with 1,000 or more employees experienced an increase in
the share of gross job losses from 19.4 to 20.7 percent. (See tables D
and 4.)
Table D. Three-month private sector share (1) of gross job gains and losses by firm
size, seasonally adjusted
(Percent)
-------------------------------------------------------------------------------------
| Share of gross job gains | Share of gross job losses
| (3 months ended) | (3 months ended)
Firm size |------------------------------|------------------------------
| Dec. |Mar. |June |Sept.|Dec. | Dec. |Mar. |June |Sept.|Dec.
| 2007 |2008 |2008 |2008 |2008 | 2007 |2008 |2008 |2008 |2008
-----------------------|------|-----|-----|-----|-----|------|-----|-----|-----|-----
| | | | | | | | | |
1 - 4 employees..| 15.6| 16.2| 15.4| 16.1| 16.8| 16.1| 16.7| 16.0| 15.3| 14.5
5 - 9 employees..| 11.5| 12.4| 11.9| 12.1| 11.7| 12.3| 12.4| 11.9| 11.4| 10.8
10 - 19 employees..| 11.7| 12.6| 12.2| 12.2| 11.8| 12.4| 12.4| 12.0| 11.6| 11.2
20 - 49 employees..| 13.8| 14.8| 14.5| 14.3| 13.6| 14.5| 14.3| 14.0| 13.9| 13.6
50 - 99 employees..| 8.8| 9.1| 9.1| 9.1| 8.6| 9.0| 8.8| 8.7| 8.7| 8.9
100 - 249 employees..| 9.3| 9.5| 9.7| 9.5| 9.2| 9.1| 8.9| 9.0| 9.4| 9.6
250 - 499 employees..| 5.6| 5.6| 5.7| 5.8| 5.5| 5.4| 5.3| 5.5| 5.6| 5.9
500 - 999 employees..| 4.5| 4.4| 4.7| 4.7| 4.6| 4.5| 4.2| 4.7| 4.8| 5.0
1,000 or more employees| 19.2| 15.2| 16.8| 16.3| 18.2| 16.7| 16.9| 18.2| 19.4| 20.7
| | | | | | | | | |
-------------------------------------------------------------------------------------
1 Shares measure the percent of the category represented by firm size,
and rates may not sum to 100.0 due to rounding.
More Information
Additional information on gross job gains and gross job losses are
available online 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, 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 firm size, and frequently asked
questions on firm-size data. Additional information about the
Business Employment Dynamics data can be found in the Technical Note
of this release or may be obtained by e-mailing BDMinfo@bls.gov.
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| Upcoming Changes to the Business Employment Dynamics |
| News Release |
| |
| Beginning with the next edition of the Business Employment |
| Dynamics news release scheduled for publication on November 19, |
| 2009, the Bureau of Labor Statistics will introduce changes in |
| the presentation of the text section of the release. There will |
| be no changes to the format and content of tables 1-7. |
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| 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 establishments, 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 employment change estimated from |
| the CES seasonally adjusted total employment series. The in- |
| tended use of the BED statistics is to show the dynamic labor |
| market flows that underlie the net changes in aggregate employ- |
| ment levels; data users who want to track net changes in aggre- |
| gate 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, |
| private households (NAICS 814110), and establishments with zero |
| employment. |
| |
| See the Technical Note for further information. |
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