Business Employment Dynamics Summary

For release 10:00 a.m. (EST) 				USDL-16-2129
Wednesday, November 9, 2016	

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

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


	  BUSINESS EMPLOYMENT DYNAMICS:  FIRST QUARTER 2016

From December 2015 to March 2016, gross job gains from opening 
and expanding private sector establishments were 7.0 million, 
a decrease of 866,000 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 59,000 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 194,000 jobs in 
the private sector during the first quarter of 2016. 
(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.)

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|         Revisions to Business Employment Dynamics (BED) Data           |
| Data in this release incorporate annual revisions to the BED series.   |
| Annual revisions are published each year with the release of first     |
| quarter data. These revisions cover the last four quarters of not      |
| seasonally adjusted data and five years of seasonally adjusted data.   |
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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 5.8 million in 
the first quarter of 2016, a decrease of 597,000 jobs from the 
previous quarter. (See tables A, 1, and 3.)

Opening establishments accounted for 1.2 million jobs gained in the 
first quarter of 2016, a decrease of 269,000 jobs from the previous 
quarter. (See tables A, 1, and 3.)

Contracting establishments lost 5.6 million jobs in the first quarter
of 2016, an increase of 44,000 jobs from the prior quarter. 
(See tables A, 1, and 3.)

In the first quarter of 2016, closing establishments lost 1.2 million 
jobs, a decrease of 103,000 jobs from the previous quarter. 
(See tables A, 1, and 3.)

Gross job gains represented 5.8 percent of private sector employment 
in the first quarter of 2016, while gross job losses represented 5.7
percent of private sector employment. (See tables A, 2, and 3.)

In the first quarter of 2016, the number of establishment births 
(a subset of the openings data, see the Technical Note for more 
information) decreased by 26,000 to 220,000 establishments. These
new establishments accounted for 734,000 jobs, a decrease of 161,000
jobs from the previous quarter. (See table 8.)

Data for establishment deaths (a subset of the closings data) are 
available through the second quarter of 2015, when 735,000 jobs were
lost at 213,000 establishments. In the prior quarter, 690,000 jobs 
were lost at 206,000 establishments. (See table 8.)

During the first quarter of 2016, gross job gains exceeded gross job 
losses in 6 of 13 industries. The sectors with the largest net job 
increases in the first quarter of 2016 were leisure and hospitality 
(+109,000), and retail trade (+98,000). The net job increase in the 
leisure and hospitality sector was the result of 1.2 million gross job
gains and 1.1 million gross job losses. The retail trade sector 
encountered 948,000 gross job gains along with 850,000 gross job 
losses. The sectors with the largest net job decreases in the first
quarter of 2016 were professional and business services (-118,000) 
and transportation and warehousing (-64,000). The net job decrease in
the professional and business services sector was the result of 1.2 
million gross job gains and 1.4 million gross job losses. The 
transportation and warehousing sector experienced 229,000 gross job
gains along with 293,000 gross job losses. (See table 3.)


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

Category                                 3 months ended

                                Mar.    June    Sept.   Dec.    Mar.
                                2015    2015    2015    2015    2016

                                      Levels (in thousands)
                                      
Gross job gains................ 7,036   7,588   7,338   7,843   6,977
 At expanding establishments... 5,727   6,244   5,972   6,375   5,778
 At opening establishments..... 1,309   1,344   1,366   1,468   1,199

Gross job losses............... 6,799   6,773   6,911   6,842   6,783
 At contracting establishments. 5,600   5,573   5,698   5,573   5,617
 At closing establishments..... 1,199   1,200   1,213   1,269   1,166

Net employment change(1).......   237     815     427   1,001     194
								
                                         Rates (percent)

Gross job gains................   6.0     6.4     6.3     6.6     5.8
 At expanding establishments...   4.9     5.3     5.1     5.4     4.8
 At opening establishments.....   1.1     1.1     1.2     1.2     1.0

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

Net employment change(1).......    .2      .7      .5      .8      .1

    (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 first quarter of 2016, firms with 1-49 employees had a net 
employment gain of 175,000. Firms with 50-249 employees had a net 
employment gain of 57,000. Firms with 250 or more employees had a net
employment loss of 8,000. (See tables 4 and 5.)

Of the 2.3 million net jobs created over the last four quarters, firms 
with 1-49 employees contributed 37 percent of net job growth, while
firms with 50-249 employees contributed 17 percent, and firms with 250
or more employees contributed 46 percent. (See tables 4 and 5.)
 
In the first quarter of 2016, gross job gains exceeded gross job 
losses in 34 states and the Virgin Islands. North Dakota has 
experienced gross job losses in excess of gross job gains for 
the past five quarters.  Other states with gross job losses 
greater than gross job gains in the first quarter of 2016 include,
but are not limited to, Alaska, Louisiana, New Mexico, Oklahoma, Texas,
and Wyoming.  Washington had the largest net employment gain this 
quarter with 39,276 net jobs, the result of 187,946 gross job gains
and 148,670 gross job losses. Alaska had the highest rate of gross job
gains as a percent of employment at 9.4 percent, above the U.S. rate
of 5.8 percent, as well as the highest rate of gross job losses as a 
percent of employment at 9.7 percent, above the U.S. rate of 5.7 
percent.  Hawaii and Michigan had the lowest rates of gross job 
losses as a percent of employment at 4.9 percent. 
(See table 6 and 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 Second Quarter 2016 are scheduled |
| to be released on Wednesday, January 25, 2017 at 10:00 a.m. (EST).     |
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Last Modified Date: November 09, 2016