Business Employment Dynamics Summary

For release 10:00 a.m. (EDT) 				USDL-14-0698
Tuesday, April 29, 2014	

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

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


	  BUSINESS EMPLOYMENT DYNAMICS:  THIRD QUARTER 2013
	
From June 2013 to September 2013 gross job gains from opening and 
expanding private sector establishments were 7.0 million, a decrease of
168,000 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 6.6 million,
an increase of 77,000 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 421,000 jobs in the 
private sector during the third 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.)

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 5.7 million in 
third quarter 2013, a decrease of 153,000 jobs from the previous 
quarter.

Opening establishments accounted for 1.3 million jobs gained in third 
quarter 2013, a decrease of 15,000 jobs from the previous quarter.

Contracting establishments lost 5.4 million jobs in third quarter 
2013. This is an increase of 136,000 jobs from the prior quarter.

In the third quarter of 2013, closing establishments lost 1.2 million
jobs, a decrease of 59,000 jobs from the previous quarter. (See 
tables 1 and 3.)

Gross job gains represented 6.1 percent of private sector employment
in third quarter 2013, while gross job losses represented 5.8 percent 
of private sector employment. (See table 2.)

In third quarter 2013, the number of establishment births (a subset of 
the openings data, see the Technical Note for more information) 
decreased by 11,000 to 215,000. These new establishments accounted for 
792,000 jobs, an increase of 15,000 from the previous quarter. 
(See table 8.)

Data for establishment deaths (a subset of the closings data) are 
available through fourth quarter 2012, when 675,000 jobs were lost at 
182,000 establishments. These figures represent a decrease from the 
prior quarter when 684,000 jobs were lost at 185,000 establishments.

During the third quarter of 2013, gross job gains exceeded gross job 
losses in all industry sectors except: natural resources and mining, 
manufacturing, utilities, information, and leisure and hospitality. 
The professional and business services sector, which includes temporary 
help services, experienced a net increase of 123,000 jobs as a result 
of higher gross job gains (1,360,000) and fewer gross job losses 
(1,237,000) this quarter. This represents the largest over the quarter 
net employment change of all industry sectors, and it is the sixteenth 
consecutive quarter of net job growth for this sector. (See table 3.)


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

Category                                 3 months ended

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

                                      Levels (in thousands)
                                      
Gross job gains................ 6,847   7,110   7,200   7,143  6,975
 At expanding establishments... 5,552   5,769   5,623   5,839  5,686
 At opening establishments..... 1,295   1,341   1,577   1,304  1,289

Gross job losses............... 6,614   6,401   6,286   6,477  6,554
 At contracting establishments. 5,436   5,199   5,136   5,267  5,403
 At closing establishments..... 1,178   1,202   1,150   1,210  1,151

Net employment change(1).......   233     709     914     666    421
								
                                         Rates (percent)

Gross job gains................   6.2     6.4     6.4     6.4    6.1
 At expanding establishments...   5.0     5.2     5.0     5.2    5.0
 At opening establishments.....   1.2     1.2     1.4     1.2    1.1

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

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

Firms with 1-49 employees accounted for 40 percent of total net job 
growth in the third quarter of 2013. Firms with 50-249 employees and 
firms with 250 or more employees accounted for 14 percent and 46 
percent of net job growth, respectively. This quarter is the fourteenth
consecutive quarter of positive net employment change for all three 
major firm size categories. Of the 7.9 million net new jobs created 
between the second quarter of 2010 and the third quarter of 2013, firms
with 1-49 employees contributed 30 percent of net job growth, while 
firms with 50-249 employees contributed 22 percent, and firms with 250
or more employees contributed 48 percent. (See Tables 4 and 5.)

In the third quarter of 2013, gross job gains exceeded gross job losses 
in 38 states and the District of Columbia. California had the largest 
net employment gain of 77,594 jobs, followed by Texas with 64,642 jobs. 
(See table 6.) Alaska had the largest rate of gross job gains as a 
percent of employment at 9.7 percent, above the U.S. rate of 6.1 
percent. Hawaii had the lowest rate of gross job losses as a percent 
of employment at 4.9 percent, below the U.S. rate of 5.8 percent. 
(See table 7.)


More Information
Additional information on gross job gains and gross job losses are 
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 Fourth Quarter 2013 are scheduled |
| to be released on Wednesday, July 30, 2014 at 10:00 a.m. (EDT).        |
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Last Modified Date: April 29, 2014