Summary of Business Employment Dynamics Data By Size of Change, December 2007
These Business Employment Dynamics (BED) size of employment change
data quantify the distribution of quarterly gross job gains and gross
job losses by size of employment change. These data show that
approximately one-third of gross job gains and gross job losses originate
from a large number of establishments that are changing their employment
level by 1-4 employees, while approximately one-third of gross job
gains and gross job losses originate from a relatively few number
of establishments that are changing their employment by 20 or
more jobs (See tables A and B.) These new size of employment change data
are a new way of presenting the BED statistics, and are different from
the BED firm size class data. For example, establishments that are
gaining 1-4 jobs could be small establishments that are doubling their
size, or they could be large establishments that are adding just a
few employees.
Gross Job Gains and Gross Job Losses, by Size of Employment
Change:
December 2007
BED size of employment change data highlight several facts about
the levels of gross job gains and gross job losses. In the
fourth quarter of 2007, gross job gains from opening and
expanding establishments was 7.6 million. Of these gross job
gains, 34.5 percent were created by 1.6 million establishments
that added 1-4 jobs, and 35.7 percent were created by 52,000
establishments that added 20 or more jobs. In the fourth quarter
of 2007, gross job losses from contracting and closing
establishments was 7.3 million. Of these gross job losses, 35.9
percent occurred in 1.6 million establishments that lost 1-4
jobs, and 34.2 percent occurred in 49,000 establishments that
lost 20 or more jobs. Additionally, there were 3.5 million
establishments that did not change their employment level in the
fourth quarter of 2007. These new size of employment change data
show that there are a large number of establishments that are
changing their employment by a few employees, while simultaneously
there are a relatively few number of establishments that are changing
their employment by a large number of employees. The resulting gross
job gains and gross job losses from these two groups of establishments
are roughly equivalent (See tables A and B.)
Gross Job Gains and Gross Job Losses, by Size of Employment
Change:
1992-2007
BED size of employment change data also highlight several facts
about the trends of gross job gains and gross job losses over the
business cycle. The jobs gained and lost by the relatively few
establishments that are changing their employment level by many
jobs exhibit much stronger cyclical variation than the jobs
gained and lost by the large number of establishments that are
changing their size by just a few jobs. The decline in gross job
gains and the increase in gross job losses that occurred during
the 2001 recession are most obvious in the establishments that
gained or lost 20 or more jobs . The quarterly gross job gains fell
from 8.5 million in the first quarter of 2001 to 7.6 million in the
fourth quarter of 2001. Sixty-one percent of this decline is
attributable to establishments that gain 20 or more jobs. The quarterly
gross job losses rose from 8.1 million in the fourth quarter of 2000
to 8.8 million in the third quarter of 2001. Sixty-five percent of
this increase is attributable to establishments that lose 20 or more
jobs.
For the most recent detailed data, see
Charts and Tables: Latest Business Employment Dynamics Data By Size of Change
Last Modified Date: September 25, 2008