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For release 10:00 a.m. (ET) Tuesday, January 30, 2024 USDL-24-0144 Technical information: (202) 691-6553 * BDMInfo@bls.gov * www.bls.gov/bdm Media contact: (202) 691-5902 * PressOffice@bls.gov BUSINESS EMPLOYMENT DYNAMICS – SECOND QUARTER 2023 From March 2023 to June 2023, gross job gains from opening and expanding private-sector establishments were 8.1 million, an increase of 79,000 jobs from the previous quarter, the U.S. Bureau of Labor Statistics reported today. Over this period, gross job losses from closing and contracting private-sector establishments were 7.8 million, an increase of 723,000 jobs from the previous quarter. The difference between the number of gross job gains and the number of gross job losses yielded a net employment gain of 332,000 jobs in the private sector during the second quarter of 2023. (See tables A and 1.) The change in the number of jobs over time is the net result of increases and decreases in employment that occur at all private businesses in the economy. Business Employment Dynamics (BED) statistics track these changes in employment at private-sector establishments from the third month of one quarter to the third month of the next. The difference between the number of gross job gains and the number of gross job losses is the net change in employment. (See Technical Note.) The BED data series include gross job gains and gross job losses by industry subsector, 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. Gross Job Gains In the second quarter of 2023, gross job gains represented 6.2 percent of private-sector employment. Gross job gains are the sum of increases in employment due to expansions at existing establishments and the addition of new jobs at opening establishments. Gross job gains at expanding establishments totaled 6.5 million in the second quarter of 2023, a decrease of 4,000 jobs compared to the previous quarter. Opening establishments accounted for 1.6 million of the jobs gained in the second quarter of 2023, an increase of 83,000 jobs from the previous quarter. (See tables A, 1, 2, and 3.) Gross Job Losses In the second quarter of 2023, gross job losses represented 5.9 percent of private-sector employment. Gross job losses are the result of contractions in employment at existing establishments and the loss of jobs at closing establishments. Contracting establishments lost 6.3 million jobs in the second quarter of 2023, an increase of 650,000 jobs from the prior quarter. In the second quarter of 2023, closing establishments lost 1.5 million jobs, an increase of 73,000 jobs from the previous quarter. (See tables A, 1, 2, and 3.) Establishment Births and Deaths In the second quarter of 2023, the number of establishment births (a subset of the openings data) increased by 1,000 to a total of 332,000 establishments. These new establishments accounted for 1.0 million jobs, an increase of 71,000 jobs from the previous quarter. Data for establishment deaths (a subset of the closings data) are available through the third quarter of 2022, when 913,000 jobs were lost at 294,000 establishments, a decrease of 12,000 jobs from the second quarter of 2022. (See Technical Note and table 8.) Table A. Three-month private-sector gross job gains and losses, seasonally adjusted --------------------------------------------------------------------------------------------- | 3 months ended Category | June | Sept. | Dec. | Mar. | June | 2022 | 2022 | 2022 | 2023 | 2023 --------------------------------------------------------------------------------------------- | Levels (in thousands) |-------------------------------------------------- Gross job gains......................... | 8,352 | 8,841 | 8,108 | 8,041 | 8,120 At expanding establishments...... | 6,624 | 7,183 | 6,447 | 6,515 | 6,511 At opening establishments........ | 1,728 | 1,658 | 1,661 | 1,526 | 1,609 | | | | | Gross job losses........................ | 7,970 | 7,500 | 7,630 | 7,065 | 7,788 At contracting establishments.... | 6,450 | 5,995 | 6,113 | 5,646 | 6,296 At closing establishments........ | 1,520 | 1,505 | 1,517 | 1,419 | 1,492 | | | | | Net employment change (1)............... | 382 | 1,341 | 478 | 976 | 332 | | | | | |-------------------------------------------------- | Rates (percent) |-------------------------------------------------- Gross job gains......................... | 6.6 | 6.9 | 6.3 | 6.2 | 6.2 At expanding establishments...... | 5.2 | 5.6 | 5.0 | 5.0 | 5.0 At opening establishments........ | 1.4 | 1.3 | 1.3 | 1.2 | 1.2 | | | | | Gross job losses........................ | 6.2 | 5.9 | 5.9 | 5.4 | 5.9 At contracting establishments.... | 5.0 | 4.7 | 4.7 | 4.3 | 4.8 At closing establishments........ | 1.2 | 1.2 | 1.2 | 1.1 | 1.1 | | | | | Net employment change (1)............... | 0.4 | 1.0 | 0.4 | 0.8 | 0.3 --------------------------------------------------------------------------------------------- (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. Firm Size In the second quarter of 2023, firms with 1 to 49 employees had no change in net employment. Firms with 50 to 249 employees had a net employment gain of 133,000. Firms with 250 or more employees had a net employment increase of 150,000. (See tables 4 and 5.) Industries Gross job gains exceeded gross job losses in 8 out of the 13 industry sectors in the second quarter of 2023. The service-providing industries experienced a net job gain of 300,000. The goods-producing industries had a net job increase of 32,000. (See table 3.) States Gross job gains surpassed gross job losses in 33 states, the District of Columbia, Puerto Rico, and the Virgin Islands in the second quarter of 2023. (See tables 6 and 7.) For More Information Additional information on gross job gains and gross job losses is available online at www.bls.gov/bdm. This information includes data for the levels and rates of gross job gains and gross job losses by firm size, not seasonally adjusted data and seasonally adjusted time series not presented in this release, charts of gross job gains and gross job losses by industry and firm size, and answers to frequently asked questions. Additional information about the Business Employment Dynamics data can be found in the Technical Note of this release or can be obtained by emailing BDMinfo@bls.gov. _____________ The Business Employment Dynamics for Third Quarter 2023 are scheduled to be released on Wednesday, April 24, 2024, at 10:00 a.m. (ET).