Technical Information: (202) 691-6553 USDL 09-0545
http://www.bls.gov/bdm/
For release: 10:00 A.M. EDT
Media Contact: (202) 691-5902 Tuesday, May 19, 2009
BUSINESS EMPLOYMENT DYNAMICS: THIRD QUARTER 2008
From June 2008 to September 2008, the number of job gains from opening
and expanding private sector establishments was 6.8 million, and the
number of job losses from closing and contracting establishments was
7.8 million, according to data released today by the Bureau of Labor
Statistics of the U.S. Department of Labor. (See tables A, 1 and 3.)
Over this period, gross job losses exceeded gross job gains in all
but three industry sectors: natural resources and mining, utilities,
and education and health services. (See tables B and 3.)
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| Additions to Business Employment Dynamics Data |
| |
| Two new sets of Business Employment Dynamics (BED) data series |
|are coming available with the release of third quarter 2008 data. |
|New national series on total private sector births and deaths |
|(number of establishments and employment) are included as a regular |
|feature of the news release. (See Table 7.) New national series on |
|births and deaths by major industry sector are available at |
|www.bls.gov/bdm/bdmind.htm, and new State series on total private |
|sector births and deaths are at www.bls.gov/bdm/bdmstate.htm. |
| The other new BED series coming available is annual data, which |
|measure gross job gains and losses by comparing establishment |
|employment for a month to establishment employment for the same |
|month one year later. Annual BED data are at |
|www.bls.gov/bdm/bdmann.htm and will be updated once a year with the |
|release of first quarter data. |
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The Business Employment Dynamics (BED) data series include gross job
gains and gross job losses at the establishment level by major
industry sector 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.
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. 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 jobs gained
and the number of gross jobs lost is the net change in employment.
(See the Technical Note for more information.)
Table A. Three-month private sector gross job gains and losses,
seasonally adjusted
------------------------------------------------------------------------
| 3 months ended
|-------------------------------------
| Sept. | Dec. | Mar. | June | Sept.
Category | 2007 | 2007 | 2008 | 2008 | 2008
|-------------------------------------
| Levels (in thousands)
----------------------------------|-------------------------------------
| | | | |
Gross job gains...................| 7,323| 7,676| 7,130| 7,258| 6,822
At expanding establishments.....| 5,849| 6,220| 5,731| 5,858| 5,504
At opening establishments.......| 1,474| 1,456| 1,399| 1,400| 1,318
| | | | |
Gross job losses..................| 7,564| 7,366| 7,400| 7,751| 7,754
At contracting establishments...| 6,209| 6,010| 6,047| 6,277| 6,383
At closing establishments.......| 1,355| 1,356| 1,353| 1,474| 1,371
| | | | |
Net employment change (1).........| -241| 310| -270| -493| -932
|-------------------------------------
| Rates (percent)
|-------------------------------------
Gross job gains...................| 6.4| 6.8| 6.2| 6.4| 6.1
At expanding establishments.....| 5.1| 5.5| 5.0| 5.2| 4.9
At opening establishments.......| 1.3| 1.3| 1.2| 1.2| 1.2
| | | | |
Gross job losses..................| 6.7| 6.5| 6.5| 6.8| 6.9
At contracting establishments...| 5.5| 5.3| 5.3| 5.5| 5.7
At closing establishments.......| 1.2| 1.2| 1.2| 1.3| 1.2
| | | | |
Net employment change (1).........| -.3| .3| -.3| -.4| -.8
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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.
Private Sector Establishment-Level Gross Job Gains and Gross Job Losses
Opening and expanding private sector business establishments gained
6.8 million jobs in the third quarter of 2008, a decrease of 436,000
from the previous quarter. Over the quarter, expanding establishments
added 5.5 million jobs while opening establishments added 1.3 million
jobs.
Gross job losses totaled 7.8 million, an increase of 3,000 from the
previous quarter. During the quarter, contracting establishments lost
6.4 million jobs, while closing establishments lost 1.4 million jobs.
(See tables A, 1, and 3.)
The difference between the number of gross jobs gained and the number
of gross jobs lost yielded a net change of -932,000 jobs in the
private sector for third quarter 2008.
Gross job gains represented 6.1 percent of private sector employment,
while gross job losses represented 6.9 percent of private sector
employment. (See tables A and 2.)
Major Industry Sector Gross Job Gains and Gross Job Losses
From June 2008 to September 2008, gross job losses exceeded gross job
gains in all but three industry sectors: natural resources and mining,
utilities, and education and health services. (See tables B and 3.)
Goods-producing. Expanding and opening establishments in the goods-
producing sectors accounted for 1,397,000 jobs gained, and contracting
and closing establishments accounted for 1,767,000 jobs lost. This
net loss of 370,000 jobs results in the ninth consecutive quarter of
net loss for these sectors of the economy.
Construction. In construction, gross job gains fell over the quarter
to 698,000. This is the lowest level of gross job gains since the first
quarter of 1993. The construction sector experienced a net loss of
178,000 jobs, even though gross job losses decreased to 876,000. This
is the sixth consecutive quarter of net job losses in this sector.
Manufacturing. Gross job gains fell to 425,000 while gross job
losses increased to 636,000. The net loss of 211,000 jobs is the ninth
consecutive quarter of net job losses in the manufacturing sector.
Service-providing. In the service-providing sectors, gross job gains
decreased to 5,425,000 and gross job losses increased to 5,987,000,
resulting in a net loss of 562,000 jobs. Job gains at expanding
establishments decreased to 4,319,000 jobs, while job losses at
contracting establishments increased to 4,890,000 jobs.
Retail Trade. In retail trade, gross job gains decreased to
892,000. Gross job losses also decreased to 1,062,000 for a net loss of
170,000 jobs. This is the largest net loss in this industry since the
series began in 1992, driven by the lowest total of gross job gains in
the history of this series.
Education and Health Services. Gross job gains increased slightly to
799,000 jobs in the third quarter, while gross job losses decreased to
706,000. This industry sector is the only one which has experienced a
net positive change in every quarter since this series began in 1992.
Financial Activities. Gross job losses exceeded gross job gains in
the financial sector for the sixth consecutive quarter. Gross job gains
fell to 376,000, while gross job losses increased to 460,000, resulting
in a net loss of 84,000 jobs in the third quarter.
Table B. Three-month private sector gross job gains and losses by industry,
seasonally adjusted
(In thousands)
-----------------------------------------------------------------------------------
| Gross job gains | Gross job losses
| (3 months ended) | (3 months ended)
Industry |-----------------------------|-----------------------------
|Sept.|Dec. |Mar. |June |Sept.|Sept.|Dec. |Mar. |June |Sept.
|2007 |2007 |2008 |2008 |2008 |2007 |2007 |2008 |2008 |2008
-----------------------|-----|-----|-----|-----|-----|-----|-----|-----|-----|-----
| | | | | | | | | |
Total private (1)....|7,323|7,676|7,130|7,258|6,822|7,564|7,366|7,400|7,751|7,754
Goods-Producing.......|1,504|1,573|1,493|1,494|1,397|1,725|1,701|1,758|1,778|1,767
Natural resources | | | | | | | | | |
and mining.........| 262| 292| 274| 280| 274| 274| 261| 293| 268| 255
Construction ........| 772| 784| 763| 737| 698| 882| 875| 869| 922| 876
Manufacturing .......| 470| 497| 456| 477| 425| 569| 565| 596| 588| 636
Service-Providing (1).|5,819|6,103|5,637|5,764|5,425|5,839|5,665|5,642|5,973|5,987
Wholesale trade......| 310| 321| 294| 295| 272| 308| 301| 306| 314| 313
Retail trade ........|1,007|1,022| 954| 939| 892|1,064|1,011| 979|1,080|1,062
Transportation and | | | | | | | | | |
warehousing........| 224| 254| 208| 225| 208| 233| 229| 250| 253| 250
Utilities............| 14| 15| 13| 16| 14| 12| 11| 10| 12| 13
Information..........| 155| 145| 154| 162| 135| 154| 155| 153| 161| 168
Financial activities.| 418| 432| 412| 394| 376| 479| 486| 436| 455| 460
Professional and | | | | | | | | | |
business services..|1,316|1,440|1,239|1,345|1,231|1,339|1,337|1,358|1,433|1,411
Education and | | | | | | | | | |
health services....| 810| 814| 785| 788| 799| 685| 666| 667| 715| 706
Leisure and | | | | | | | | | |
hospitality........|1,179|1,247|1,158|1,183|1,114|1,224|1,148|1,154|1,218|1,259
Other services.......| 293| 296| 290| 300| 280| 307| 287| 289| 293| 307
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1 Includes unclassified sector, not shown separately.
Number of Establishments Gaining and Losing Employment
Another way to look at the dynamics of business activities is to
monitor the number and proportion of business units that are growing
and declining. In the third quarter of 2008, the number of
establishments losing jobs exceeded the number of establishments
gaining jobs.
Out of 7.0 million active private-sector establishments, a total of
1,987,000 establishments lost jobs from June 2008 to September 2008.
(See table C.) Of these establishments, 1,608,000 were contracting
establishments and 379,000 were closing establishments. Of the
establishments gaining jobs, 1,439,000 establishments were expanding
and 349,000 establishments were opening, resulting in 1,788,000
establishments gaining jobs.
The number of closing establishments exceeded the number of opening
establishments, resulting in a net loss of 30,000 private-sector
establishments during the quarter. This is the sixth quarter that there
has been a net decline in the number of establishments since 1992, and
the fourth time a decline has occurred in the past six quarters.
Table C. Number of private sector establishments by direction of
employment change, seasonally adjusted
(In thousands)
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| 3 months ended
|--------------------------------------
Category | Sept.| Dec. | Mar. | June | Sept.
| 2007 | 2007 | 2008 | 2008 | 2008
----------------------------------|-------|-------|------|------|--------
Establishments gaining jobs.......| 1,901| 1,940| 1,874| 1,834| 1,788
Expanding establishments........| 1,525| 1,558| 1,517| 1,479| 1,439
Opening establishments..........| 376| 382| 357| 355| 349
| | | | |
Establishments losing jobs........| 1,956| 1,935| 1,976| 2,024| 1,987
Contracting establishments......| 1,595| 1,575| 1,596| 1,633| 1,608
Closing establishments..........| 361| 360| 380| 391| 379
| | | | |
Net establishment change (1)......| 15| 22| -23| -36| -30
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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.
Establishment Births and Deaths
From June 2008 to September 2008, a total of 187,000 new private sector
non-farm businesses created 813,000 jobs, a drop of 8,000 births and
47,000 jobs from the previous quarter. The jobs created by these new
establishments represent 11.9 percent of total gross job gains. The
historical time series of birth data shows the number of establishment
births has remained around 200,000 every quarter, while employment from
births dropped from a high of 1.3 million in the first quarter 1998 to
813,000 in the third quarter of 2008. (See Table 7.)
Gross Job Gains and Losses by State
In the third quarter of 2008, 7 states and the District of Columbia
experienced net employment growth, while 43 states, Puerto Rico, and the
Virgin Islands experienced net job losses. The Virgin Islands and four
states: Michigan, Nevada, New Jersey, and South Carolina showed
rates of gross job gains below the U.S. rate of 6.1 percent and rates
of gross job losses above the U.S. rate of 6.9 percent. (See tables 5
and 6.)
Firm-level Gross Job Gains and Gross Job Losses by Size Class
From June 2008 to September 2008, firms with 1 to 4 employees
experienced an increase in their share of gross job gains with 16.1
percent, and firms with 1,000 or more employees experienced an
increase in gross job losses with 19.3 percent. (See tables D and 4.)
Table D. Three-month private sector share (1) of gross job gains and losses by firm
size, seasonally adjusted
(Percent)
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| Share of gross job gains | Share of gross job losses
| (3 months ended) | (3 months ended)
Firm size |------------------------------|------------------------------
| Sept.|Dec. |Mar. |June |Sept.| Sept.|Dec. |Mar. |June |Sept.
| 2007 |2007 |2008 |2008 |2008 | 2007 |2007 |2008 |2008 |2008
-----------------------|------|-----|-----|-----|-----|------|-----|-----|-----|-----
| | | | | | | | | |
1 - 4 employees..| 16.2| 15.6| 16.2| 15.4| 16.1| 15.8| 16.0| 16.7| 15.9| 15.2
5 - 9 employees..| 12.2| 11.4| 12.4| 11.8| 12.0| 12.1| 12.3| 12.4| 11.9| 11.3
10 - 19 employees..| 12.2| 11.6| 12.6| 12.1| 12.2| 12.3| 12.4| 12.4| 12.0| 11.6
20 - 49 employees..| 14.3| 13.8| 14.7| 14.4| 14.2| 14.5| 14.4| 14.3| 13.9| 13.9
50 - 99 employees..| 8.9| 8.7| 9.1| 9.1| 9.0| 8.9| 8.9| 8.7| 8.6| 8.7
100 - 249 employees..| 9.2| 9.3| 9.4| 9.7| 9.4| 9.4| 9.1| 8.9| 8.9| 9.3
250 - 499 employees..| 5.6| 5.5| 5.6| 5.6| 5.7| 5.5| 5.3| 5.3| 5.4| 5.5
500 - 999 employees..| 4.6| 4.5| 4.4| 4.6| 4.6| 4.5| 4.5| 4.2| 4.7| 4.7
1,000 or more employees| 16.4| 19.1| 15.2| 16.8| 16.2| 16.6| 16.7| 16.8| 18.2| 19.3
| | | | | | | | | |
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1 Shares measure the percent of the category represented by firm size,
and rates may not sum to 100.0 due to rounding.
More Information
Additional information on gross job gains and gross job losses are
available online at http://www.bls.gov/bdm. This information includes
data on the levels and rates of gross job gains and gross job losses by
firm size, the 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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| 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 establishments, 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 unemployment insurance program. The net over-the-quarter |
| changes derived by aggregating component series in the BED data |
| may be different from the net employment change estimated from |
| the CES seasonally adjusted total employment series. The in- |
| tended use of the BED statistics is to show the dynamic labor |
| market flows that underlie the net changes in aggregate employ- |
| ment levels; data users who want to track net changes in aggre- |
| gate employment levels over time should refer to CES data. |
| |
| BED data have a more limited scope than the Quarterly Census |
| of Employment and Wages (QCEW) data. The data in this release, |
| in contrast to the QCEW data, exclude government employees, |
| private households (NAICS 814110), and establishments with zero |
| employment. |
| |
| See the Technical Note for further information. |
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