Technical Information: (202) 691-6467 USDL 04-1458 http://www.bls.gov/bdm/ For release: 10:00 A.M. EDT Media Contact: 691-5902 Tuesday, August 3, 2004 BUSINESS EMPLOYMENT DYNAMICS: FOURTH QUARTER 2003 From September to December 2003, the number of job gains from opening and expanding establishments in the private sector was 7.6 million, and the number of job losses from closing and contracting establishments was 7.3 million, according to preliminary data released today by the Bureau of Labor Statistics of the U.S. Department of Labor. During the fourth quarter of 2003, job gains rose in most major industry sectors, while job losses declined. Business Employment Dynamics statistics are derived from the Quarterly Census of Employment and Wages (QCEW), also known as the ES-202 program. Gross job gains are defined as increases in employment resulting from expansions of employment at existing private sector establishments or from the opening of establishments. Gross job losses are defined as declines in employment at existing establishments or from the closing of establishments. The difference between the number of gross jobs gained and the number of gross jobs lost is the net change in employment. Private Sector Gross Job Gains and Job Losses Opening and expanding private sector business establishments gained 7.6 million jobs in the fourth quarter of 2003, or 250,000 more than in the third quarter of 2003. Over the quarter, expanding establishments added 6.1 million jobs, while opening establishments added 1.6 million. Job losses totaled 7.3 million in the fourth quarter of 2003, down by 22,000 from the third quarter of 2003. In the fourth quarter of 2003, contracting establishments lost 5.8 million jobs, while closing establish- ments accounted for a loss of 1.5 million jobs. (See tables A, 1, and 3.) From September to December 2003, gross job gains represented 7.2 percent of private sector employment, an increase of 0.3 percentage point over the previous quarter, while gross job losses remained unchanged at 6.8 percent of private sector employment. (See tables A and 2.) These statistics demonstrate that a sizable number of jobs appear and disappear in the rel- atively short time frame of one quarter. - 2 - Table A. 3-month private sector gross job gains and losses, seasonally adjusted (In thousands) ------------------------------------------------------------------------- | 3 months ended |-------------------------------------- Category | Dec. | Mar. | June | Sept. | Dec. | 2002 | 2003 | 2003 | 2003 | 2003 |-------------------------------------- | Levels (in thousands) ----------------------------------|-------------------------------------- Gross job gains...................| 7,702 | 7,472 | 7,560 | 7,396| 7,646 At expanding establishments.....| 6,059 | 5,932 | 6,033 | 5,897| 6,063 At opening establishments.......| 1,643 | 1,540 | 1,527 | 1,499| 1,583 Gross job losses..................| 7,877 | 7,876 | 7,702 | 7,324| 7,302 At contracting establishments...| 6,267 | 6,321 | 6,138 | 5,893| 5,816 At closing establishments.......| 1,610 | 1,555 | 1,564 | 1,431| 1,486 |-------------------------------------- Net employment change 1/..........| -175 | -404 | -142 | 72| 344 |-------------------------------------- | As a percent of employment |-------------------------------------- Gross job gains...................| 7.1 | 6.9 | 7.0 | 6.9 | 7.2 At expanding establishments.....| 5.6 | 5.5 | 5.6 | 5.5 | 5.7 At opening establishments.......| 1.5 | 1.4 | 1.4 | 1.4 | 1.5 Gross job losses..................| 7.3 | 7.4 | 7.2 | 6.8 | 6.8 At contracting establishments...| 5.8 | 5.9 | 5.7 | 5.5 | 5.4 At closing establishments.......| 1.5 | 1.5 | 1.5 | 1.3 | 1.4 |-------------------------------------- Net employment change 1/..........| -0.2 | -0.5 | -0.2 | 0.1 | 0.4 ------------------------------------------------------------------------- 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. Major Industry Sector Gross Job Gains and Gross Job Losses During the fourth quarter of 2003, expanding and opening establishments in the goods-producing sector gained 1,665,000 jobs, while contracting and closing establishments lost 1,697,000 jobs, for a net loss of 32,000 jobs. Quarterly job gains in manufacturing rose to 586,000, while job losses dropped to 651,000 jobs, narrowing the net loss in that sector to 65,000 jobs. In construction, job gains increased to 793,000 and job losses decreased to 761,000 for a net gain of 32,000. Job gains in the service-providing sector totaled 6.0 million jobs, exceeding job losses in that sector by 376,000 jobs. Job gains rose in the fourth quarter in all service-providing sectors except in transpor- tation and warehousing, in utilities, and in financial activities. The information sector gained 172,000 jobs and lost 166,000 jobs for a net increase of 6,000 jobs, the first net job gain since December 2000. (See tables 3 and B.) - 3 - Table B. 3-month private sector 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. |2002 |2003 |2003 |2003 |2003 |2002 |2003 |2003 |2003 |2003 -------------------|-----|-----|-----|-----|-----|-----|-----|-----|-----|----- Total | | | | | | | | | | private 1/.......|7,702|7,472|7,560|7,396|7,646|7,877|7,876|7,702|7,324|7,302 Goods-producing....|1,652|1,692|1,657|1,605|1,665|1,889|1,932|1,897|1,755|1,697 Natural resources| | | | | | | | | | and mining.....| 294| 310| 299| 272| 286| 297| 309| 294| 292| 285 Construction.....| 778| 782| 811| 784| 793| 800| 829| 822| 762| 761 Manufacturing....| 580| 600| 547| 549| 586| 792| 794| 781| 701| 651 Service- | | | | | | | | | | providing 1/.....|6,050|5,780|5,903|5,791|5,981|5,988|5,944|5,805|5,569|5,605 Wholesale | | | | | | | | | | trade..........| 321| 320| 314| 308| 317| 348| 348| 334| 323| 320 Retail trade.....|1,057| 962|1,039|1,019|1,061|1,109|1,060| 996| 989|1,016 Transportation | | | | | | | | | | and ware- | | | | | | | | | | housing........| 239| 227| 230| 235| 227| 270| 237| 283| 239| 237 Utilities........| 13| 15| 14| 16| 14| 23| 15| 19| 19| 16 Information......| 174| 166| 153| 149| 172| 208| 201| 194| 185| 166 Financial | | | | | | | | | | activities.....| 488| 442| 455| 444| 436| 451| 428| 418| 417| 462 Professional | | | | | | | | | | and business | | | | | | | | | | services.......|1,422|1,406|1,367|1,356|1,438|1,450|1,469|1,416|1,287|1,302 Education and | | | | | | | | | | health | | | | | | | | | | services.......| 776| 760| 745| 731| 744| 659| 680| 698| 670| 659 Leisure and | | | | | | | | | | hospitality....|1,151|1,083|1,166|1,125|1,161|1,126|1,161|1,105|1,095|1,097 Other services...| 300| 296| 303| 286| 288| 308| 305| 305| 309| 293 ------------------------------------------------------------------------------ 1/ Includes unclassified sector, not shown separately. Number of Establishments Gaining and Losing Employment In the fourth quarter of 2003, the number of opening establishments exceeded the number of closing establishments, leading to a net addition of 26,000 units to the number of total active private sector establishments. In the third and fourth quarters of 2003, the number of establishments gaining jobs surpassed the number of establishments losing jobs for the first time since March 2001. During the fourth quarter of 2003, over 1.8 million establishments out of 6.4 million active private sector establish- ments gained jobs. (See table C.) Of these, 1.5 million were expanding establishments and 348,000 were opening establishments. During the fourth quarter of 2003, nearly 1.8 million establishments lost jobs. Of these, 1.5 million were contracting establishments and 322,000 were closing estab- lishments. - 4 - Table C. Number of private sector establishments by direction of employ- ment change, seasonally adjusted (In thousands) -------------------------------------------------------------------------- | 3 months ended Category |--------------------------------------- | Dec. | Mar. | June | Sept. | Dec. | 2002 | 2003 | 2003 | 2003 | 2003 ----------------------------------|-------|-------|-------|-------|------- | | | | | Establishments gaining jobs.......| 1,801 | 1,750 | 1,788 | 1,791 | 1,815 Expanding establishments........| 1,452 | 1,418 | 1,457 | 1,463 | 1,467 Opening establishments..........| 349 | 332 | 331 | 328 | 348 |--------------------------------------- Establishments losing jobs .......| 1,813 | 1,847 | 1,801 | 1,772 | 1,775 Contracting establishments......| 1,484 | 1,513 | 1,473 | 1,454 | 1,453 Closing establishments..........| 329 | 334 | 328 | 318 | 322 |--------------------------------------- Net establishment change 1/.......| 20 | -2 | 3 | 10 | 26 -------------------------------------------------------------------------- 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. More Information For seasonally unadjusted data and seasonally adjusted series not presented in this release, please refer to the BLS Web site at http://www.bls.gov. For more information, please see the Technical Note of this release or the Business Employment Dynamics Web page at the BLS Web site http://www.bls.gov/bdm. Additional information about the Business Employment Dynamics data may be obtained by e-mailing 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 unemploy- | | ment insurance program. BED data have a more limited scope than | | the Quarterly Census of Employment and Wages data. The data in | | this release exclude government employees, private households | | (NAICS 814110), and establishments with zero employment. | | | | The net over-the-quarter changes derived by aggregating com- | | ponent 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. | | | | See the Technical Note for further information. | ------------------------------------------------------------------- - 5 - 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 Bureau's 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 Bureau 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 Bureau 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. - 6 - 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 records | nally-linked UI ad- | 400,000 employers | submitted by 8.2 | ministrative records| | million employers | submitted by 6.4 | | | 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 | | |--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 quarter- |--Provides quarterly |--Provides current month- products | ly and annual uni- | employer dynamics | ly estimates of employ- | verse counts 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 |--Future expansions | | | will include data at| | | the county, MSA, and| | | state level and by | | | size of establish- | | | ment | -----------|---------------------|----------------------|-------------------------- 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 | -Future: employment| cators | surveys | expansion and con- | | | traction by size of| | | establishment | -----------|---------------------|----------------------|-------------------------- Program |--www.bls.gov/cew/ |--www.bls.gov/bdm/ |--www.bls.gov/ces/ Web sites | | | ----------------------------------------------------------------------------------- - 7 - 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 6.4 million private sector employer reports out of 8.2 million total reports of employment and wages submitted by states to BLS in the first quarter of 2003. 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 2002: Number of active establishments included in Business Employment Dynamics data Millions Total establishments ES-202 program..................................8.2 Excluded: Public sector.........................................0.3 Private households....................................0.5 Zero employment.......................................1.0 Establishments in Puerto Rico and the Virgin Islands..............................0.0* Total establishments included in Business Employment Dynamics data...........................................6.4 *Approximately 48,000 establishments. Concepts and methodology The Business Employment Dynamics data measure the net change in employment at the establishment level. These changes come about in one of four ways. A net increase in employment can come from either opening establishments or ex- panding establishments. A net decrease in employment can come from either closing establishments or contracting establishments. Gross job gains include the sum of all jobs added at either opening or expanding establishments. Gross job losses include the sum of all jobs lost in either closing or contracting establishments. The net change in employment is the difference between gross job gains and gross job losses. - 8 - The formal definitions of establishment-level employment changes are as follows: Openings. These are either establishments with positive third-month em- ployment 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 establishments with positive employment in the third month in both the previous and current quarters, with a net increase in employ- ment over this period. Closings. These are either establishments with positive third-month employ- ment in the previous quarter, with no employment or zero employment reported in the current quarter. Contractions. These are establishments 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 change their employment levels; these establishments 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 quarters. This provides a symmetric growth rate. The rates are calculated for the com- ponents 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. The linkage process matches establishments' 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 restructur- ing, 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 records 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. - 9 - 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 variation 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 analyze changes in economic activity. The employment data series for opening, expanding, closing, and contract- ing establishments are independently seasonally adjusted; net changes are calculated based on the difference between gross job gains and gross job losses. Similarly, 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 open- ing and closing establishments. Additionally, establishment and employment levels are independently seasonally adjusted to calculate the seasonally ad- justed rates. Concurrent seasonal adjustment is run using X-12 ARIMA. Sea- sonally adjusted data series for the total private sector are calculated by summing the seasonally adjusted data for all sectors, including the unclassi- fied 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. - 10 - 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 Net change (1) Total Expanding Opening Total Contracting Closing ended 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 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 1 The rates measure gross job gains and gross job losses as a percentage of the average of 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 (in thousands) Gross job gains and losses as a percent of employment Category 3 months ended 3 months ended Dec. Mar. June Sept. Dec. Dec. Mar. June Sept. Dec. 2002 2003 2003 2003 2003 2002 2003 2003 2003 2003 Total private(1) Gross job gains 7,702 7,472 7,560 7,396 7,646 7.1 6.9 7.0 6.9 7.2 At expanding establishments 6,059 5,932 6,033 5,897 6,063 5.6 5.5 5.6 5.5 5.7 At opening establishments 1,643 1,540 1,527 1,499 1,583 1.5 1.4 1.4 1.4 1.5 Gross job losses 7,877 7,876 7,702 7,324 7,302 7.3 7.4 7.2 6.8 6.8 At contracting establishments 6,267 6,321 6,138 5,893 5,816 5.8 5.9 5.7 5.5 5.4 At closing establishments 1,610 1,555 1,564 1,431 1,486 1.5 1.5 1.5 1.3 1.4 Net employment change -175 -404 -142 72 344 -0.2 -0.5 -0.2 0.1 0.4 Goods-producing Gross job gains 1,652 1,692 1,657 1,605 1,665 7.1 7.3 7.2 7.1 7.3 At expanding establishments 1,359 1,395 1,378 1,343 1,391 5.8 6.0 6.0 5.9 6.1 At opening establishments 293 297 279 262 274 1.3 1.3 1.2 1.2 1.2 Gross job losses 1,889 1,932 1,897 1,755 1,697 8.0 8.3 8.3 7.7 7.4 At contracting establishments 1,551 1,579 1,558 1,443 1,391 6.6 6.8 6.8 6.3 6.1 At closing establishments 338 353 339 312 306 1.4 1.5 1.5 1.4 1.3 Net employment change -237 -240 -240 -150 -32 -0.9 -1.0 -1.1 -0.6 -0.1 Natural resources and mining Gross job gains 294 310 299 272 286 17.6 18.5 17.9 16.4 17.3 At expanding establishments 240 256 249 225 233 14.4 15.3 14.9 13.6 14.1 At opening establishments 54 54 50 47 53 3.2 3.2 3.0 2.8 3.2 Gross job losses 297 309 294 292 285 17.8 18.4 17.6 17.7 17.2 At contracting establishments 245 247 240 243 239 14.7 14.7 14.4 14.7 14.4 At closing establishments 52 62 54 49 46 3.1 3.7 3.2 3.0 2.8 Net employment change -3 1 5 -20 1 -0.2 0.1 0.3 -1.3 0.1 Construction Gross job gains 778 782 811 784 793 11.6 11.7 12.2 11.7 11.8 At expanding establishments 616 619 654 636 641 9.2 9.3 9.8 9.5 9.5 At opening establishments 162 163 157 148 152 2.4 2.4 2.4 2.2 2.3 Gross job losses 800 829 822 762 761 12.0 12.4 12.3 11.4 11.3 At contracting establishments 637 660 653 601 599 9.6 9.9 9.8 9.0 8.9 At closing establishments 163 169 169 161 162 2.4 2.5 2.5 2.4 2.4 Net employment change -22 -47 -11 22 32 -0.4 -0.7 -0.1 0.3 0.5 Manufacturing Gross job gains 580 600 547 549 586 3.8 4.0 3.8 3.8 4.1 At expanding establishments 503 520 475 482 517 3.3 3.5 3.3 3.3 3.6 At opening establishments 77 80 72 67 69 0.5 0.5 0.5 0.5 0.5 Gross job losses 792 794 781 701 651 5.2 5.3 5.4 4.9 4.6 At contracting establishments 669 672 665 599 553 4.4 4.5 4.6 4.2 3.9 At closing establishments 123 122 116 102 98 0.8 0.8 0.8 0.7 0.7 Net employment change -212 -194 -234 -152 -65 -1.4 -1.3 -1.6 -1.1 -0.5 Service-providing(1) Gross job gains 6,050 5,780 5,903 5,791 5,981 7.2 6.9 7.0 6.9 7.1 At expanding establishments 4,700 4,537 4,655 4,554 4,672 5.6 5.4 5.5 5.4 5.5 At opening establishments 1,350 1,243 1,248 1,237 1,309 1.6 1.5 1.5 1.5 1.6 Gross job losses 5,988 5,944 5,805 5,569 5,605 7.1 7.0 7.0 6.6 6.6 At contracting establishments4,716 4,742 4,580 4,450 4,425 5.6 5.6 5.5 5.3 5.2 At closing establishments 1,272 1,202 1,225 1,119 1,180 1.5 1.4 1.5 1.3 1.4 Net employment change 62 -164 98 222 376 0.1 -0.1 0.0 0.3 0.5 Wholesale trade Gross job gains 321 320 314 308 317 5.7 5.7 5.6 5.6 5.7 At expanding establishments 255 251 252 249 257 4.5 4.5 4.5 4.5 4.6 At opening establishments 66 69 62 59 60 1.2 1.2 1.1 1.1 1.1 Gross job losses 348 348 334 323 320 6.2 6.2 6.0 5.8 5.7 At contracting establishments 266 269 256 250 245 4.7 4.8 4.6 4.5 4.4 At closing establishments 82 79 78 73 75 1.5 1.4 1.4 1.3 1.3 Net employment change -27 -28 -20 -15 -3 -0.5 -0.5 -0.4 -0.2 0.0 Retail trade Gross job gains 1,057 962 1,039 1,019 1,061 7.0 6.4 6.9 6.7 7.1 At expanding establishments 884 799 872 848 886 5.9 5.3 5.8 5.6 5.9 At opening establishments 173 163 167 171 175 1.1 1.1 1.1 1.1 1.2 Gross job losses 1,109 1,060 996 989 1,016 7.3 7.0 6.7 6.6 6.8 At contracting establishments 924 903 834 839 857 6.1 6.0 5.6 5.6 5.7 At closing establishments 185 157 162 150 159 1.2 1.0 1.1 1.0 1.1 Net employment change -52 -98 43 30 45 -0.3 -0.6 0.2 0.1 0.3 Transportation and warehousing Gross job gains 239 227 230 235 227 6.0 5.6 5.8 6.0 5.7 At expanding establishments 191 189 186 193 191 4.8 4.7 4.7 4.9 4.8 At opening establishments 48 38 44 42 36 1.2 0.9 1.1 1.1 0.9 Gross job losses 270 237 283 239 237 6.8 5.9 7.1 6.1 6.0 At contracting establishments 208 189 234 193 188 5.2 4.7 5.9 4.9 4.8 At closing establishments 62 48 49 46 49 1.6 1.2 1.2 1.2 1.2 Net employment change -31 -10 -53 -4 -10 -0.8 -0.3 -1.3 -0.1 -0.3 Utilities Gross job gains 13 15 14 16 14 2.2 2.5 2.4 2.7 2.4 At expanding establishments 11 13 12 14 12 1.9 2.2 2.1 2.4 2.1 At opening establishments 2 2 2 2 2 0.3 0.3 0.3 0.3 0.3 Gross job losses 23 15 19 19 16 3.9 2.5 3.2 3.3 2.7 At contracting establishments 20 13 17 15 14 3.4 2.2 2.9 2.6 2.4 At closing establishments 3 2 2 4 2 0.5 0.3 0.3 0.7 0.3 Net employment change -10 0 -5 -3 -2 -1.7 0.0 -0.8 -0.6 -0.3 Information Gross job gains 174 166 153 149 172 5.2 5.1 4.8 4.7 5.5 At expanding establishments 133 133 125 120 131 4.0 4.1 3.9 3.8 4.2 At opening establishments 41 33 28 29 41 1.2 1.0 0.9 0.9 1.3 Gross job losses 208 201 194 185 166 6.3 6.2 6.1 5.8 5.2 At contracting establishments 157 157 156 150 121 4.8 4.8 4.9 4.7 3.8 At closing establishments 51 44 38 35 45 1.5 1.4 1.2 1.1 1.4 Net employment change -34 -35 -41 -36 6 -1.1 -1.1 -1.3 -1.1 0.3 Financial activities Gross job gains 488 442 455 444 436 6.3 5.7 5.8 5.7 5.5 At expanding establishments 365 340 361 344 333 4.7 4.4 4.6 4.4 4.2 At opening establishments 123 102 94 100 103 1.6 1.3 1.2 1.3 1.3 Gross job losses 451 428 418 417 462 5.8 5.4 5.4 5.3 5.9 At contracting establishments 329 323 320 321 354 4.2 4.1 4.1 4.1 4.5 At closing establishments 122 105 98 96 108 1.6 1.3 1.3 1.2 1.4 Net employment change 37 14 37 27 -26 0.5 0.3 0.4 0.4 -0.4 Professional and business services Gross job gains 1,422 1,406 1,367 1,356 1,438 8.9 8.8 8.6 8.5 9.0 At expanding establishments 1,104 1,129 1,084 1,085 1,136 6.9 7.1 6.8 6.8 7.1 At opening establishments 318 277 283 271 302 2.0 1.7 1.8 1.7 1.9 Gross job losses 1,450 1,469 1,416 1,287 1,302 9.0 9.2 8.9 8.1 8.2 At contracting establishments1,127 1,148 1,067 996 1,000 7.0 7.2 6.7 6.3 6.3 At closing establishments 323 321 349 291 302 2.0 2.0 2.2 1.8 1.9 Net employment change -28 -63 -49 69 136 -0.1 -0.4 -0.3 0.4 0.8 Education and health services Gross job gains 776 760 745 731 744 5.0 4.8 4.8 4.6 4.7 At expanding establishments 641 630 624 607 616 4.1 4.0 4.0 3.8 3.9 At opening establishments 135 130 121 124 128 0.9 0.8 0.8 0.8 0.8 Gross job losses 659 680 698 670 659 4.2 4.3 4.4 4.3 4.1 At contracting establishments 529 553 565 548 529 3.4 3.5 3.6 3.5 3.3 At closing establishments 130 127 133 122 130 0.8 0.8 0.8 0.8 0.8 Net employment change 117 80 47 61 85 0.8 0.5 0.4 0.3 0.6 Leisure and hospitality Gross job gains 1,151 1,083 1,166 1,125 1,161 9.5 8.9 9.6 9.3 9.5 At expanding establishments 862 807 885 849 866 7.1 6.6 7.3 7.0 7.1 At opening establishments 289 276 281 276 295 2.4 2.3 2.3 2.3 2.4 Gross job losses 1,126 1,161 1,105 1,095 1,097 9.3 9.6 9.1 9.0 8.9 At contracting establishments 904 934 881 879 875 7.5 7.7 7.3 7.2 7.1 At closing establishments 222 227 224 216 222 1.8 1.9 1.8 1.8 1.8 Net employment change 25 -78 61 30 64 0.2 -0.7 0.5 0.3 0.6 Other services Gross job gains 300 296 303 286 288 7.9 7.8 8.0 7.6 7.6 At expanding establishments 237 229 239 227 227 6.2 6.0 6.3 6.0 6.0 At opening establishments 63 67 64 59 61 1.7 1.8 1.7 1.6 1.6 Gross job losses 308 305 305 309 293 8.1 8.0 8.0 8.2 7.8 At contracting establishments 239 239 236 246 229 6.3 6.3 6.2 6.5 6.1 At closing establishments 69 66 69 63 64 1.8 1.7 1.8 1.7 1.7 Net employment change -8 -9 -2 -23 -5 -0.2 -0.2 0.0 -0.6 -0.2 1 Includes unclassified sector, not shown separately.