Business Employment Dynamics Summary

For release 10:00 a.m. (EDT) 				USDL-16-1538
Wednesday, July 27, 2016	

Technical information: (202) 691-6553  *  BDMInfo@bls.gov  *  www.bls.gov/bdm

Media contact:	       (202) 691-5902  *  PressOffice@bls.gov	


	  BUSINESS EMPLOYMENT DYNAMICS:  FOURTH QUARTER 2015

From September 2015 to December 2015, gross job gains from opening 
and expanding private sector establishments were 7.8 million, an 
increase of 530,000 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 6.8 
million, a decrease of 52,000 jobs from the previous quarter. 
(See tables A, 1, and 3.)

The difference between the number of gross job gains and the number of 
gross job losses yielded a net employment gain of 1.0 million jobs in 
the private sector during the fourth quarter of 2015. 
(See tables A, 1, and 3.)

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.) 

The BED data series include gross job gains and gross job losses at the
establishment level by industry subsector 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.

Gross job gains at expanding establishments totaled 6.4 million in 
the fourth quarter of 2015, an increase of 415,000 jobs from the 
previous quarter. (See tables A, 1, and 3.)

Opening establishments accounted for 1.4 million jobs gained in the 
fourth quarter of 2015, an increase of 115,000 jobs from the previous 
quarter. (See tables A, 1, and 3.)

Contracting establishments lost 5.6 million jobs in the fourth quarter
of 2015. This was a decrease of 106,000 jobs from the prior quarter. 
(See tables A, 1, and 3.)

In the fourth quarter of 2015, closing establishments lost 1.3 million 
jobs, an increase of 54,000 jobs from the previous quarter. 
(See tables A, 1, and 3.)

Gross job gains represented 6.6 percent of private sector employment 
in the fourth quarter of 2015, while gross job losses represented 5.8
percent of private sector employment. (See tables A, 2, and 3.)

In the fourth quarter of 2015, the number of establishment births 
(a subset of the openings data, see the Technical Note for more 
information) increased by 2,000 to 240,000 establishments. These
new establishments accounted for 889,000 jobs, an increase of 18,000
jobs from the previous quarter. (See table 8.)

Data for establishment deaths (a subset of the closings data) are 
available through the first quarter of 2015, when 691,000 jobs were
lost at 206,000 establishments. In the prior quarter, 709,000 jobs 
were lost at 197,000 establishments.  (See table 8.)

During the fourth quarter of 2015, gross job gains exceeded gross job 
losses in most industry sectors except for natural resources and 
mining, and manufacturing. The natural resources and mining sector
experienced a net decrease of 54,000 jobs, the result of 245,000 gross
job gains and 299,000 gross job losses. The manufacturing sector 
experienced a net decrease of 12,000 jobs, the result of 412,000 gross
job gains and 424,000 gross job losses. Overall, goods-producing 
industries experienced a net increase of 43,000 jobs, the result of 
1.4 million gross job gains and 1.3 million gross job losses. 
Service-providing industries, with 6.5 million gross job gains and 
5.5 million gross job losses, experienced a net increase of 957,000 
jobs. (See table 3.)


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

Category                                 3 months ended

                                Dec.    Mar.    June    Sept.   Dec.
                                2014    2015    2015    2015    2015

                                      Levels (in thousands)
                                      
Gross job gains................ 7,658   6,947   7,554   7,292   7,822
 At expanding establishments... 6,279   5,666   6,220   5,958   6,373
 At opening establishments..... 1,379   1,281   1,334   1,334   1,449

Gross job losses............... 6,563   6,721   6,725   6,874   6,822
 At contracting establishments. 5,322   5,558   5,541   5,657   5,551
 At closing establishments..... 1,241   1,163   1,184   1,217   1,271

Net employment change(1)....... 1,095     226     829     418   1,000
								
                                         Rates (percent)

Gross job gains................   6.6     5.9     6.4     6.1     6.6
 At expanding establishments...   5.4     4.8     5.3     5.0     5.4
 At opening establishments.....   1.2     1.1     1.1     1.1     1.2

Gross job losses...............   5.7     5.7     5.7     5.8     5.8
 At contracting establishments.   4.6     4.7     4.7     4.8     4.7
 At closing establishments.....   1.1     1.0     1.0     1.0     1.1

Net employment change(1).......    .9      .2      .7      .3      .8

    (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.

In the fourth quarter of 2015, firms with 1-49 employees had a net 
employment gain of 230,000. Firms with 50-249 employees had a net 
employment gain of 98,000. Firms with 250 or more employees had a net
employment gain of 554,000. (See tables 4 and 5.)

Of the 2.3 million net jobs created over the last four quarters, firms 
with 1-49 employees contributed 35 percent of net job growth, while 
firms with 50-249 employees contributed 19 percent, and firms with 250
or more employees contributed 46 percent. (See tables 4 and 5.)
 
In the fourth quarter of 2015, gross job gains exceeded gross job 
losses in 45 states and the District of Columbia, Puerto Rico, and the
Virgin Islands. California experienced 1,068,393 gross job gains and 
933,600 gross job losses resulting in a net employment gain of 134,793.
This is the largest net employment gain of any state this quarter. 
Florida had the second largest net employment gain this quarter with 
98,741 net jobs, the result of 506,029 gross job gains and  407,288 
gross job losses. (See table 6.) Alaska had the highest rate of gross
job gains as a percent of employment at 9.5 percent, above the U.S. 
rate of 6.6 percent, as well as the highest rate of gross job losses 
as a percent of employment at 10.5 percent, above the U.S. rate of 5.8
percent. Hawaii and Tennessee had the lowest rate of gross job losses 
as a percent of employment at 4.6 percent. (See table 7.)

More Information
Additional information on gross job gains and gross job losses is 
available online at www.bls.gov/bdm. 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 BDMinfo@bls.gov. 

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| The Business Employment Dynamics for First Quarter 2016 are scheduled |
| to be released on Wednesday, November 9, 2016 at 10:00 a.m. (EST).    |
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Last Modified Date: July 27, 2016