Business Employment Dynamics Summary

For release 10:00 a.m. (EST) 				USDL-14-0127
Wednesday, January 29, 2014	

Technical information: (202) 691-6553  *  *

Media contact:	       (202) 691-5902  *	

From March 2013 to June 2013 gross job gains from opening and expanding
private sector establishments were 7.1 million, the U.S. Bureau of 
Labor Statistics reported today. Over this period, gross job losses 
from closing and contracting private sector establishments were 6.5 
million, an increase of 191,000 from the previous quarter. (See box 
note on page 3.)

The difference between the number of gross job gains and the number of
gross job losses yielded a net employment gain of 666,000 jobs in the 
private sector during the second quarter of 2013. (See table 1.)

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. Business Employment Dynamics (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 job gains and the number of gross job losses is the net change 
in employment. (See the Technical Note for more information.)

|        Corrections to Business Employment Dynamics (BED) Data          |
|                                                                        |
|Following normal processing procedures, annual revisions were published |

|with the release of first quarter 2013 data. These annual revisions     |
|should have included updates to the BED establishment birth and death   |

|data series, but they were not updated due to a production error. For   |

|this reason, the BED birth and death data are revised with this release.|

|These revisions cover all four quarters of 2012 for not seasonally      |

|adjusted data and the previous five years of seasonally adjusted data.  |

|Table 8 is updated with this release along with the birth and death data|

|at the national industry level. These data are available at             |

| and the state total private data are  |

|available at                       |


Gross job gains at expanding establishments totaled 5.8 million in 
second quarter 2013, an increase of 216,000 jobs from the previous

Opening establishments accounted for 1.3 million jobs gained in second
quarter 2013. (See box note on page 3.)

Contracting establishments lost 5.3 million jobs in second quarter 
2013. This is an increase of 131,000 jobs from the prior quarter.

In the second quarter of 2013, closing establishments lost 1.2 million
jobs, an increase of 60,000 jobs from the previous quarter.  
(See tables 1 and 3.)

Gross job gains represented 6.4 percent of private sector employment 
in second quarter 2013, while gross job losses represented 5.8 percent
of private sector employment.  (See table 2.)

In second quarter 2013, the number of establishment births (a subset of
the openings data, see the Technical Note for more information) was 
226,000. These new establishments accounted for 777,000 jobs. 
(See box note on page 3 and table 8.)

Data for establishment deaths (a subset of the closings data) are 
available through third quarter 2012, when 684,000 jobs were lost at
185,000 establishments. These figures represent increases from the 
prior quarter when 666,000 jobs were lost at 184,000 establishments.

Gross job gains exceeded gross job losses in all three major firm size 
classes during second quarter 2013.  Firms with less than 250 employees
accounted for 56 percent of the net job growth. (See tables 4 and 5.)

In the second quarter of 2013, gross job gains exceeded gross job 
losses in 42 states and the District of Columbia. California had the
largest net employment gain of 79,166 jobs, followed by Texas with 
65,907 jobs. (See table 6.) Alaska had the largest rate of gross job 
gains as a percent of employment at 10.6 percent, above the U.S. rate
of 6.4 percent. Connecticut had the lowest rate of gross job losses as
a percent of employment at 4.8 percent, below the U.S. rate of 5.8 
percent. (See table 7.)

Table A.  Three-month private sector gross job gains and losses, 
seasonally adjusted 

Category                                 3 months ended

                                June    Sept.   Dec.    Mar.    June
                                2012    2012    2012    2013    2013

                                      Levels (in thousands)
Gross job gains................ 7,027   6,847   7,110   7,200  7,143
 At expanding establishments... 5,738   5,552   5,769   5,623  5,839
 At opening establishments..... 1,289   1,295   1,341   1,577  1,304

Gross job losses............... 6,414   6,614   6,401   6,286  6,477
 At contracting establishments. 5,259   5,436   5,199   5,136  5,267
 At closing establishments..... 1,155   1,178   1,202   1,150  1,210

Net employment change(1).......   613     233     709     914    666
                                         Rates (percent)

Gross job gains................   6.4     6.2     6.4     6.4    6.4
 At expanding establishments...   5.2     5.0     5.2     5.0    5.2
 At opening establishments.....   1.2     1.2     1.2     1.4    1.2

Gross job losses...............   5.9     6.0     5.8     5.6    5.8
 At contracting establishments.   4.8     4.9     4.7     4.6    4.7
 At closing establishments.....   1.1     1.1     1.1     1.0    1.1

Net employment change(1).......    .5      .2      .6      .8     .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.

More Information
Additional information on gross job gains and gross job losses are 
available online at This information includes data 
on the levels and rates of gross job gains and gross job losses by 
firm size, 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

The Business Employment Dynamics for Third Quarter 2013 are scheduled 
to be released on Tuesday, April 29, 2014 at 10:00 a.m. (EDT).

|Administrative Change Affecting Business Employment Dynamics (BED) Data |
|                                                                        |
|First quarter 2013 data were affected by an administrative change to the|
|count of establishments in the education and health services industry.  |
|A review of these data revealed that certain establishments that provide| 
|non-medical, home-based services for the elderly and persons with       |
|disabilities had been misclassified in the private households industry  |
|(NAICS 814110), which is out of scope for the BED. These establishments | 
|are now in scope and are classified in services for the elderly and     |
|persons with disabilities (NAICS 624120.) This non-economic industry    |
|code change artificially inflated the first quarter 2013 data for gross | 
|job gains, openings, births, and the net employment change for the      |
|following data series: national total private, state total private, the | 
|education and health services sector, firm size class, annual, and age  |
|and survival. As a result, data for first quarter 2013 are not          |
|comparable to data from other quarters.                                 |

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Last Modified Date: January 29, 2014