Business Employment Dynamics Summary
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 ------------------------------------------------------------------------- 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. ------------------------------------------------------------------ | 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. | ------------------------------------------------------------------ ------------------------------------------------------------------ | 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. | ------------------------------------------------------------------
- Business Employment Dynamics Technical Note
- Table 1. Private sector gross job gains and losses, seasonally adjusted
- Table 2. Private sector gross job gains and losses as a percent of employment (1), seasonally adjusted
- Table 3. Private sector gross job gains and losses by industry, seasonally adjusted
- Table 4. Private sector percentage share (1) of gross job gains and losses, seasonally adjusted
- Table 5. Private sector gross job gains and losses by state, seasonally adjusted
- Table 6. Private sector gross job gains and losses as a percent of total employment by state, seasonally adjusted
- Table 7. Private sector establishment births and deaths, seasonally adjusted
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Last Modified Date: August 19, 2009