Technical information: (202) 691-6467 USDL 07-0245 http://www.bls.gov/bdm/ For release: 10:00 A.M. EST Media contact: 691-5902 Wednesday, February 14, 2007 BUSINESS EMPLOYMENT DYNAMICS: SECOND QUARTER 2006 From March 2006 to June 2006, the number of job gains from opening and expanding private sector establishments was 7.8 million, and the number of job losses from closing and contracting establishments was 7.3 million, according to data released today by the Bureau of Labor Statistics of the U.S. Department of Labor. Gross job gains exceeded gross job losses in all sectors, except construction, utilities, and retail trade. (See table 3.) Firms with 1,000 or more employees accounted for 18.3 percent of the net gains in employment, representing the largest contribution to employment growth among all firm size classes. (See tables D and 4.) The Business Employment Dynamics (BED) data series include gross job gains and gross job losses at the establishment level by major industry sector, 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 expan- sions 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.) Private Sector Establishment-Level Gross Job Gains and Job Losses Opening and expanding private sector business establishments gained 7.8 million jobs in the second quarter of 2006, an increase of 205,000 from the previous quarter. Over the se- cond quarter, expanding establishments added 6.3 million jobs, while opening establishments added 1.5 million jobs. Gross job losses totaled 7.3 million, an increase of 523,000 from the previous quarter. During the quarter, contracting establishments lost 5.9 million jobs, while closing estab- lishments 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 positive net change of 466,000 jobs in the private sector for second quarter 2006. From March 2006 to June 2006, gross job gains represented 6.9 percent of private sector employment, while gross job losses represented 6.5 percent of private sector employment. (See tables A and 2.) These gross job gain and loss statistics demonstrate that a sizable number of jobs appear and disappear in the relatively short time frame of one quarter. - 2 - Table A. Three-month private sector gross job gains and losses, seasonally adjusted ------------------------------------------------------------------------ | 3 months ended |------------------------------------- Category | June | Sept.| Dec. | Mar. | June | 2005 | 2005 | 2005 | 2006 | 2006 |------------------------------------- | Levels (in thousands) ----------------------------------|------------------------------------- | | | | | Gross job gains...................| 7,932| 8,055| 7,818| 7,556| 7,761 At expanding establishments.....| 6,311| 6,423| 6,293| 6,205| 6,286 At opening establishments.......| 1,621| 1,632| 1,525| 1,351| 1,475 Gross job losses..................| 7,358| 7,427| 7,267| 6,772| 7,295 At contracting establishments...| 5,873| 5,915| 5,888| 5,536| 5,937 At closing establishments.......| 1,485| 1,512| 1,379| 1,236| 1,358 Net employment change (1).........| 574| 628| 551| 784| 466 |------------------------------------- | Rates (percent) |------------------------------------- Gross job gains...................| 7.2| 7.3| 7.1| 6.7| 6.9 At expanding establishments.....| 5.7| 5.8| 5.7| 5.5| 5.6 At opening establishments.......| 1.5| 1.5| 1.4| 1.2| 1.3 Gross job losses..................| 6.6| 6.8| 6.5| 6.0| 6.5 At contracting establishments...| 5.3| 5.4| 5.3| 4.9| 5.3 At closing establishments.......| 1.3| 1.4| 1.2| 1.1| 1.2 Net employment change(1)..........| 0.6| 0.5| 0.6| 0.7| 0.4 ------------------------------------------------------------------------ 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. Major Industry Sector Gross Job Gains and Gross Job Losses Goods-producing. Expanding and opening establishments in the goods-producing sector accounted for 1,673,000 jobs gained, and contracting and closing establishments accounted for 1,644,000 jobs lost. This net gain of 29,000 jobs was a decline from 168,000 net jobs gained in the previous quarter. (See tables B and 3.) Construction. In construction, gross job gains over the quarter fell to 828,000 and gross job losses increased to 830,000, resulting in a net loss of 2,000 jobs. This is the first quarter of net loss since the second quarter of 2003. Manufacturing. Gross job gains in manufacturing increased to a level of 559,000 jobs in the second quarter of 2006. Despite an increase in gross job losses, from 528,000 in the first quarter to 549,000 in the current quarter, this sector experienced a positive net change of 10,000 jobs. Service-providing. In the service-providing sector, gross job gains totaled 6,088,000 and gross job losses totaled 5,651,000 in the second quarter of 2006, resulting in a posi- tive net change of 437,000 jobs. Retail trade. Gross job gains in the retail trade sector totaled 1,053,000. Gross job losses increased to 1,074,000, resulting in a net loss of 21,000 jobs. This is the first quarter of net employment loss in this sector since September 2004. Leisure and hospitality. The leisure and hospitality sector gained 1,200,000 jobs and lost 1,169,000 jobs in the second quarter of 2006, for a net gain of 31,000. - 3 - Table B. Three-month private sector gross job gains and losses by industry, seasonally adjusted (In thousands) ---------------------------------------------------------------------------------- | Gross job gains | Gross job losses |-----------------------------|----------------------------- Industry | 3 months ended | 3 months ended |-----------------------------|----------------------------- |June |Sept.|Dec. |Mar. |June |June |Sept.|Dec. |Mar. |June |2005 |2005 |2005 |2006 |2006 |2005 |2005 |2005 |2006 |2006 ----------------------|-----|-----|-----|-----|-----|-----|-----|-----|-----|----- | | | | | | | | | | Total private (1)...|7,932|8,055|7,818|7,556|7,761|7,358|7,427|7,267|6,772|7,295 Goods-producing.......|1,713|1,698|1,722|1,713|1,673|1,679|1,663|1,606|1,545|1,644 Natural resources | | | | | | | | | | and mining.........| 288| 265| 279| 279| 286| 285| 265| 265| 275| 265 Construction ........| 859| 868| 862| 910| 828| 786| 782| 774| 742| 830 Manufacturing .......| 566| 565| 581| 524| 559| 608| 616| 567| 528| 549 Service-providing (1).|6,219|6,357|6,096|5,843|6,088|5,679|5,764|5,661|5,227|5,651 Wholesale trade......| 337| 338| 320| 311| 328| 300| 311| 302| 288| 288 Retail trade.........|1,047|1,074|1,058|1,048|1,053| 989|1,063|1,015| 971|1,074 Transportation and...| | | | | | | | | | warehousing.........| 248| 254| 268| 232| 242| 262| 236| 231| 228| 227 Utilities ...........| 15| 13| 14| 11| 13| 18| 12| 16| 11| 13 Information .........| 155| 170| 152| 139| 146| 153| 154| 156| 142| 140 Financial | | | | | | | | | | activities..........| 475| 480| 472| 408| 447| 439| 413| 434| 404| 432 Professional and | | | | | | | | | | business services...|1,456|1,523|1,432|1,279|1,428|1,332|1,311|1,303|1,169|1,272 Education and | | | | | | | | | | health services.....| 800| 811| 766| 771| 776| 701| 691| 699| 645| 713 Leisure and | | | | | | | | | | hospitality.........|1,212|1,202|1,175|1,194|1,200|1,135|1,219|1,165|1,046|1,169 Other services.......| 309| 297| 289| 293| 307| 300| 309| 296| 281| 284 ---------------------------------------------------------------------------------- 1 Includes unclassified sector, not shown separately. Number of Establishments Gaining and Losing Employment Another way to look at the dynamics of business activity is to monitor the number and proportion of business units that are growing and declining. The second quarter of 2006 re- presented the twelfth consecutive quarter where the number of expanding establishments ex- ceeded the number of contracting establishments. Out of 6.8 million active private sector establishments, a total of 1,918,000 establishments gained jobs from March 2006 to June 2006. (See table C.) Of these, 1,558,000 were expanding establishments and 360,000 were opening establishments. During the quarter, 1,543,000 establishments contracted and 341,000 estab- lishments closed, resulting in 1,884,000 establishments losing jobs. Overall, the number of active private sector establishments increased by 19,000 during the quarter. This change is the difference between the number of opening establishments and the number of closing estab- lishments. - 4 - Table C. Number of private sector establishments by direction of employment change, seasonally adjusted (In thousands) ------------------------------------------------------------------------- | 3 months ended Category |-------------------------------------- | June | Sept. | Dec. | Mar. | June | 2005 | 2005 | 2005 | 2006 | 2006 ----------------------------------|-------|-------|-------|-------|------ Establishments gaining jobs.......| 1,897 | 1,924 | 1,921 | 1,938 | 1,918 Expanding establishments......| 1,526 | 1,549 | 1,546 | 1,585 | 1,558 Opening establishments........| 371 | 375 | 375 | 353 | 360 Establishments losing jobs........| 1,836 | 1,825 | 1,849 | 1,839 | 1,884 Contracting establishments....| 1,496 | 1,486 | 1,520 | 1,498 | 1,543 Closing establishments........| 340 | 339 | 329 | 341 | 341 Net establishment change (1)......| 31 | 36 | 46 | 12 | 19 ------------------------------------------------------------------------- 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. Firm-level Gross Job Gains and Gross Job Losses by Size Class From March 2006 to June 2006, firms with 1,000 or more employees accounted for 18.3 per- cent of the net gains in employment, representing the largest contribution to employment growth among all firm size classes. This size class had the largest share of gross job gains (16.7 percent) and the largest share of gross job losses (16.6 percent). (See tables D and 4.) Firms with 1 to 4 employees had the smallest contribution to the total net change in employment of 2.1 percent from March 2006 to June 2006, a decrease from the previous quar- ter’s contribution of 5.8 percent. In the second quarter of 2006, firms with 500 or more employees represented 29.1 percent of the total net change in employment, 21.5 percent of gross job gains, and 21.0 percent of gross job losses. (See table D.) Historically, from September 1992 through March 2006, firms with 500 or more employees have accounted for, on average, 34.6 percent of quarterly net employment growth. (See table E.) Firms with 1 to 4 employees continued to have the largest shares of both job gains at open- ing firms and job losses at closing firms, with 57.5 percent and 57.8 percent respectively, in the second quarter of 2006. (See table 4.) - 5 - Table D. Three-month private sector percentage share (1) of net change, gross job gains, and gross job losses by firm size, seasonally adjusted (Percent) ----------------------------------------------------------------------------------------------------------------- | Share of net change | Share of gross job gains | Share of gross job losses |-----------------------------|-----------------------------|----------------------------- | 3 months ended | 3 months ended | 3 months ended Firm size |-----------------------------|-----------------------------|----------------------------- | June|Sept.| Dec.| Mar.| June| June|Sept.| Dec.| Mar.| June| June|Sept.| Dec.| Mar.| June | 2005|2005 | 2005| 2006| 2006| 2005|2005 | 2005| 2006| 2006| 2005|2005 | 2005| 2006| 2006 -----------------------|-----------|-----|-----------|-----|-----|-----|-----|-----|-----|-----|-----|----------- | | | | | | | | | | | | | | | 1 - 4 employees..| 9.7| 10.4| 14.8| 5.8| 2.1| 15.2| 15.1| 15.5| 15.7| 15.0| 15.7| 15.6| 15.6| 17.0| 16.0 5 - 9 employees..| 5.8| 6.7| 2.7| 6.8| 2.4| 11.9| 11.7| 11.7| 12.3| 11.9| 12.5| 12.3| 12.6| 13.0| 12.6 10 - 19 employees..| 9.9| 6.8| 3.7| 10.2| 6.4| 12.2| 11.9| 12.0| 12.7| 12.2| 12.4| 12.4| 12.8| 13.0| 12.7 20 - 49 employees..| 17.8| 8.3| 5.8| 18.9| 17.0| 14.5| 13.9| 13.9| 14.9| 14.6| 14.2| 14.5| 14.7| 14.4| 14.4 50 - 99 employees..| 14.8| 5.4| 4.2| 13.8| 12.5| 9.1| 8.7| 8.7| 9.3| 9.1| 8.6| 9.0| 9.1| 8.7| 8.9 100 - 249 employees..| 16.8| 6.5| 3.9| 16.6| 17.8| 9.8| 9.3| 9.1| 9.7| 9.8| 9.2| 9.6| 9.6| 8.8| 9.1 250 - 499 employees..| 10.9| 7.7| 3.4| 10.4| 12.7| 5.9| 5.8| 5.5| 5.7| 5.9| 5.4| 5.6| 5.7| 5.1| 5.3 500 - 999 employees..| 8.1| 8.3| 2.1| 9.6| 10.8| 4.9| 4.8| 4.5| 4.5| 4.8| 4.6| 4.4| 4.7| 3.9| 4.4 1,000 or more employees| 6.2| 39.8| 59.4| 7.9| 18.3| 16.5| 19.0| 19.1| 15.2| 16.7| 17.4| 16.7| 15.2| 16.1| 16.6 | | | | | | | | | | | | | | | Total................|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0 ----------------------------------------------------------------------------------------------------------------- 1 Share measures the percent of the category represented by firm size. Table E. Average percentage share (1) of gross job gains and gross job losses by firm size, third quarter 1992-second quarter 2006, seasonally adjusted (Percent) ---------------------------------------------------------------------------------------------- | Firm size (number of employees) |----------------------------------------------------------------------- Category | | | | | | | 100 | 250 | 500 | 1,000 | Total | 1-4 | 5-9 | 10-19| 20-49| 50-99| - | - | - | or | | | | | | | 249 | 499 | 999 | more ----------------------|-------|------|------|------|------|------|------|------|------|------- Gross job gains.......| 100.0 | 14.3 | 11.5 | 11.9 | 14.3 | 9.1 | 9.8 | 5.9 | 4.9 | 18.3 Expanding firms.....| 100.0 | 7.0 | 10.6 | 12.0 | 15.2 | 10.0 | 11.1 | 6.8 | 5.7 | 21.6 Opening firms.......| 100.0 | 52.0 | 16.1 | 11.6 | 9.8 | 4.2 | 3.0 | 1.3 | .8 | 1.2 | | | | | | | | | | Gross job losses......| 100.0 | 14.7 | 11.9 | 12.2 | 14.4 | 9.0 | 9.6 | 5.8 | 4.8 | 17.6 Contracting firms...| 100.0 | 7.5 | 11.1 | 12.3 | 15.3 | 9.9 | 10.8 | 6.7 | 5.5 | 20.9 Closing firms.......| 100.0 | 49.5 | 15.5 | 11.6 | 10.2 | 4.8 | 3.9 | 1.8 | 1.2 | 1.5 | | | | | | | | | | Net change............| 100.0 | 9.6 | 6.5 | 8.2 | 12.4 | 9.4 | 11.8 | 7.5 | 6.2 | 28.4 | | | | | | | | | | Cumulative share of | | | | | | | | | | net change........| | 9.6 | 16.1 | 24.3 | 36.7 | 46.1 | 57.9 | 65.4 | 71.6 | 100.0 ---------------------------------------------------------------------------------------------- 1 Share measures the percent of the category represented by firm size. More Information Additional information on gross job gains and gross job losses are available at the Business Employment Dynamics Web page on the BLS Web site 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 size class, and frequently asked questions on size-class 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. - 6 - -------------------------------------------------------------------- | 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 estab- | | lishments, 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 em- | | ployment change estimated from the CES seasonally adjusted total | | employment series. The intended use of the BED statistics is to | | show the dynamic labor market flows that underlie the net changes | | in aggregate employment levels; data users who want to track net | | changes in aggregate 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, pri- | | vate households (NAICS 814110), and establishments with zero | | employment. | | | | See the Technical Note for further information. | -------------------------------------------------------------------- - 7 - Technical Note The Business Employment Dynamics (BED) data are a product of a federal- state cooperative program known as Quarterly Census of Employment and Wages (QCEW), or the ES-202 program. The BED data are compiled by the U.S. Bureau of Labor Statistics (BLS) from existing quarterly state unemployment insurance (UI) records. Most employers in the U.S. are required to file quarterly reports on the employment and wages of workers covered by UI laws, and to pay quarterly UI taxes. The quarterly UI reports are sent by the State Workforce Agencies (SWAs) to BLS and form the basis of the BLS establishment universe sampling frame. These reports also are used to pro- duce the quarterly QCEW data on total employment and wages and the longitu- dinal BED data on gross job gains and losses. Other important BLS uses of the UI reports are in the Current Employment Statistics (CES) program. (See table below for differences between QCEW, CES, and BED.) In the BED program, the quarterly UI records are linked across quarters to provide a longitudinal history for each establishment. The linkage process allows the tracking of net employment changes at the establishment level, which in turn allows the estimation of jobs gained at opening and expanding establishments and jobs lost at closing and contracting establish- ments. Differences between QCEW, BED, and CES employment measures The BLS publishes three different establishment-based employment mea- sures for any given quarter. Each of these measures--QCEW, BED, and CES-- makes use of the quarterly UI employment reports in producing data; how- ever, each measure has a somewhat different universe coverage, estimation procedure, and publication product. Differences in coverage and estimation methods can result in somewhat different measures of over-the-quarter employment change. It is important to understand program differences and the intended uses of the program products. (See table below.) Additional information on each program can be obtained from the program Web sites shown in the table. - 8 - Summary of Major Differences between QCEW, BED, and CES Employment Measures --------------------------------------------------------------------------------- | QCEW | BED | CES -----------|---------------------|----------------------|------------------------ Source |--Count of UI admini-|--Count of longitudi- |--Sample survey: | strative recods | nally-linked UI ad- | 400,000 establish- | submitted by 8.8 | ministrative records| ments | million employers | submitted by 6.8 | | | million private sec-| | | tor employers | -----------|---------------------|----------------------|------------------------ Coverage |--UI and UCFE cover- |--UI Coverage, exclud-|Nonfarm wage and sal- | age: all employers| ing government, pri-| ary jobs: | subject to state | vate households, and|--UI Coverage, exclud- | and federal UI Laws| establishments with | ing agriculture, pri- | | zero employment | vate households, and | | | self-employed workers | | |--Other employment, in- | | | cluding railroads, | | | religious organiza- | | | tions, and other non- | | | UI-covered jobs -----------|---------------------|----------------------|------------------------ Publication|--Quarterly |--Quarterly |--Monthly frequency | -7 months after the| -8 months after the | -Usually first Friday | end of each quar- | end of each quarter| of following month | ter | | -----------|---------------------|----------------------|------------------------ Use of UI |--Directly summarizes|--Links each new UI |--Uses UI file as a sam- file | and publishes each | quarter to longitu- | pling frame and annu- | new quarter of UI | dinal database and | ally realigns (bench- | data | directly summarizes | marks) sample esti- | | gross job gains and | mates to first quar- | | losses | ter UI levels -----------|---------------------|----------------------|------------------------ Principal |--Provides a quarter-|--Provides quarterly |--Provides current month- products | ly and annual uni- | employer dynamics | ly estimates of employ- | verse count of es- | data on establish- | ment, hours, and earn- | tablishments, em- | ment openings, clos-| ings at the MSA, state, | ployment, and wages| ings, expansions, | and national level by | at the county, MSA,| and contractions at | industry | state, and national| the national level | | levels by detailed | by NAICS supersector| | industry | and by size of firm | | |--Future expansions | | | will include data at| | | the county, MSA, and| | | state level | -----------|---------------------|----------------------|------------------------ Principal |--Major uses include:|--Major uses include: |--Major uses include: uses | -Detailed locality | -Business cycle | -Principal national | data | analysis | economic indicator | -Periodic universe | -Analysis of employ-| -Official time series | counts for bench- | er dynamics under- | for employment change | marking sample | lying economic ex- | measures | survey estimates | pansions and con- | -Input into other ma- | -Sample frame for | tractions | jor economic indi- | BLS establishment | An analysis of em- | cators | surveys | ployment expansion | | | and contraction by | | | size of firm | | | | -----------|---------------------|----------------------|------------------------ Program |--www.bls.gov/cew/ |--www.bls.gov/bdm/ |--www.bls.gov/ces/ Web sites | | | --------------------------------------------------------------------------------- - 9 - Coverage Employment and wage data for workers covered by state UI and Unemployment Compensation for Federal Employees (UCFE) laws are compiled from quarterly contribution reports submitted to the SWAs by employers. In addition to the quarterly contribution reports, employers who operate multiple establishments within a state complete a questionnaire, called the "Multiple Worksite Report," which provides detailed information on the location of their establishments. These reports are based on place of employment rather than place of residence. UI and UCFE coverage is broad and basically comparable from state to state. Major exclusions from UI coverage are self-employed workers, religious or- ganizations, most agricultural workers on small farms, all members of the Armed Forces, elected officials in most states, most employees of railroads, some domestic workers, most student workers at schools, and employees of cer- tain small nonprofit organizations. Gross job gains and gross job losses in this release are derived from lon- gitudinal histories of over 6.8 million private sector employer reports out of 8.8 million total reports of employment and wages submitted by states to BLS in the first quarter of 2006. Gross job gains and gross job losses data in this release do not report estimates for government employees or private households (NAICS 814110) and do not include establishments with zero employ- ment over three quarters. Data from Puerto Rico and the Virgin Islands also are excluded from the national data. As an illustration, the table below shows, in millions of establishments, the number of establishments excluded from the gross job gains and gross job losses data in the second quarter of 2006: Number of active establishments included in Business Employment Dynamics data Millions Total establishments QCEW program....................................8.8 Excluded: Public sector.........................................0.3 Private households....................................0.6 Zero employment.......................................1.0 Establishments in Puerto Rico and the Virgin Islands..............................0.1 Total establishments included in Business Employment Dynamics data...........................................6.8 Unit of analysis Establishments are used in the tabulation of the BED statistics by in- dustry and firms are used in the tabulation of the BED size class sta- tistics. An establishment is defined as an economic unit that produces goods or services, usually at a single physical location, and engages in one or predominantly one activity. A firm is a legal business, either corporate or otherwise, and may consist of several establishments. Firm- level data are compiled based on an aggregation of establishments under common ownership by a corporate parent using employer tax identification numbers. The firm-level aggregation, which is consistent with the role of corporations as the economic decision makers, is used for the measurement of the BED data elements by size class. Because of the difference in the unit of analysis, total gross job gains and gross job losses by size class are lower than total gross job gains and gross job losses by industry, as some establishment gains and losses within a firm are offset during the aggregation process. However, the total net changes in employment are the same for not seasonally adjusted data and are similar for seasonally adjusted data. - 10 - Concepts and methodology The Business Employment Dynamics data measure the net change in employ- ment at the establishment or firm level. These changes come about in one of four ways. A net increase in employment can come from either opening units or expanding units. A net decrease in employment can come from either closing units or contracting units. Gross job gains include the sum of all jobs added at either opening or expanding units. Gross job losses include the sum of all jobs lost in either closing or contracting units. The net change in employment is the difference between gross job gains and gross job losses. The formal definitions of employment changes are as follows: Openings. These are either units with positive third-month employment for the first time in the current quarter, with no links to the prior quarter, or with positive third-month employment in the current quarter, following zero em- ployment in the previous quarter. Expansions. These are units with positive employment in the third month in both the previous and current quarters, with a net increase in employment over this period. Closings. These are units with positive third-month employment in the pre- vious quarter, with no employment or zero employment reported in the current quarter. Contractions. These are units with positive employment in the third month in both the previous and current quarters, with a net decrease in employment over this period. All establishment-level employment changes are measured from the third month of each quarter. Not all establishments and firms change their em- ployment levels. Units with no change in employment count towards estimates of total employment, but not for levels of gross employment job gains and gross job losses. Gross job gains and gross job losses are expressed as rates by dividing their levels by the average of employment in the current and previous quar- ters. This provides a symmetric growth rate. The rates are calculated for the components of gross job gains and gross job losses and then summed to form their respective totals. These rates can be added and subtracted just as their levels can. For instance, the difference between the gross job gains rate and the gross job losses rate is the net growth rate. Linkage methodology Prior to the measurement of gross job gains and gross job losses, QCEW records are linked across two quarters. The linkage process matches esta- blishments' unique SWA identification numbers (SWA-ID). Between 95 to 97 percent of establishments identified as continuous from quarter to quarter are matched by SWA-ID. The rest are linked in one of three ways. The first method uses predecessor and successor information, identified by the states, which relates records with different SWA-IDs across quarters. Predecessor and successor relations can come about for a variety of reasons, including a change in ownership, a firm restructuring, or a UI account restructuring. If a match cannot be attained in this manner, a probability-based match is used. This match attempts to identify two establishments with different SWA- IDs as continuous. The match is based upon comparisons such as the same name, address, and phone number. Third, an analyst examines unmatched re- cords individually and makes a possible match. In order to ensure the highest possible quality of data, SWAs verify with employers and update, if necessary, the industry, location, and ownership classification of all establishments on a 3-year cycle. Changes in establish- ment classification codes resulting from the verification process are intro- duced with the data reported for the first quarter of the year. Changes re- sulting from improved employer reporting also are introduced in the first quarter. - 11 - Sizing methodology The method of dynamic sizing is used in calculations for the BED size- class data series. Dynamic sizing allocates each firm's employment gain or loss during a quarter to each respective size class in which the change occurred. For example, if a firm grew from 2 employees in quarter 1 to 38 employees in quarter 2, then, of the 36-employee increase, 2 would be al- located to the first size class, 5 to the size class 5 to 9, 10 to size class 10 to 19, and 19 to size class 20 to 49. Dynamic sizing provides symmetrical firm-size estimates and eliminates any systematic effects which may be caused by the transitory and reverting changes in firms' sizes over time. Additionally, it allocates each job gain or loss to the actual size class where it occurred. Seasonal adjustment Over the course of a year, the levels of employment and the associated job flows undergo sharp fluctuations due to such seasonal events as changes in the weather, reduced or expanded production, harvests, major holidays, and the opening and closing of schools. The effect of such seasonal vari- ation can be very large. Because these seasonal events follow a more or less regular pattern each year, their influence can be eliminated by adjusting these statistics from quarter to quarter. These adjustments make nonseasonal developments, such as declines in economic activity, easier to recognize. For example, the large number of youths taking summer jobs is likely to obscure other changes that have taken place in June relative to March, making it difficult to determine if the level of economic activity has risen or declined. However, because the effect of students finishing school in previous years is known, the statistics for the current year can be adjusted to allow for a comparable change. The adjusted figures provide a more useful tool with which to ana- lyze changes in economic activity. The employment data series for opening, expanding, closing, and contract- ing units are independently seasonally adjusted; net changes are calculated based on the difference between gross job gains and gross job losses. Simi- larly, for industry data, the establishment counts data series for opening, expanding, closing, and contracting establishments are independently adjusted, and the net changes are calculated based on the difference between the number of opening and closing establishments. Additionally, establishment and em- ployment levels are independently seasonally adjusted to calculate the sea- sonally adjusted rates. Concurrent seasonal adjustment is run using X-12 ARIMA. Seasonally adjusted data series for the total private sector are cal- culated by summing the seasonally adjusted data for all sectors, including the unclassified sector, which is not published separately. The net over-the-quarter change derived by summing the BED component series will differ from the net employment change estimated from the seasonally ad- justed total private employment series from the CES program. The intended use of BED statistics is to show the dynamic labor market changes that underlie the net employment change statistic. As such, data users interested particu- larly in the net employment change and not in the gross job flows underlying this change should refer to CES data for over-the-quarter net employment changes. Reliability of the data Since the data series on Business Employment Dynamics are based on admini- strative rather than sample data, there are no issues related to sampling error. Nonsampling error, however, still exists. Nonsampling errors can oc- cur for many reasons, such as the employer submitting corrected employment data after the end of the quarter or typographical errors made by businesses when providing information. Such errors, however, are likely to be distri- buted randomly throughout the dataset. Changes in administrative data sometimes create complications for the linkage process. This can result in overstating openings and closings while understating expansions and contractions. The BLS continues to refine methods for improving the linkage process to alleviate the effects of these compli- cations. The BED data series are subject to periodic minor changes based on correc- tions in QCEW records, updates on predecessors and successors information, and seasonal adjustment revisions. - 12 - Additional statistics and other information Several other programs within BLS produce closely related information. The QCEW program, also known as the ES-202 program, provides both quarterly and annual estimates of employment by state, county, and detailed industry. News releases on quarterly county employment and wages are available upon request from the Division of Administrative Statistics and Labor Turnover, Bureau of Labor Statistics, U.S. Department of Labor, Washington, DC 20212; telephone 202-691-6567; (http://www.bls.gov/cew/); (e-mail: QCEWInfo@bls.gov). The CES program produces monthly estimates of employment, its net change, and earnings by detailed industry. These estimates are part of the Employ- ment Situation report put out monthly by BLS. The Job Openings and Labor Turnover Survey (JOLTS) program provides month- ly measures of job openings, as well as employee hires and separations. Information in this release will be made available to sensory impaired in- dividuals upon request. Voice phone: 202-691-5200; TDD message referral number: 1-800-877-8339. Table 1. Private sector gross job gains and job losses, seasonally adjusted Total private (In thousands) Gross job gains Gross job losses Year 3 months ended Net change (1) Total Expanding Opening Total Contracting Closing establishments establishments establishments establishments 1992 September 455 7,377 5,632 1,745 6,922 5,351 1,571 December 216 7,101 5,465 1,636 6,885 5,487 1,398 1993 March 313 7,309 5,410 1,899 6,996 5,354 1,642 June 786 7,330 5,794 1,536 6,544 5,136 1,408 September 874 7,523 5,881 1,642 6,649 5,316 1,333 December 641 7,436 5,840 1,596 6,795 5,420 1,375 1994 March 517 7,400 5,807 1,593 6,883 5,435 1,448 June 1,021 7,807 6,060 1,747 6,786 5,295 1,491 September 1,175 7,972 6,227 1,745 6,797 5,493 1,304 December 507 7,630 5,998 1,632 7,123 5,647 1,476 1995 March 746 7,782 6,129 1,653 7,036 5,660 1,376 June 402 7,714 6,017 1,697 7,312 5,839 1,473 September 771 7,970 6,291 1,679 7,199 5,680 1,519 December 407 7,877 6,153 1,724 7,470 5,934 1,536 1996 March 460 7,943 6,190 1,753 7,483 5,957 1,526 June 642 8,080 6,302 1,778 7,438 5,894 1,544 September 632 8,189 6,326 1,863 7,557 5,998 1,559 December 861 8,278 6,409 1,869 7,417 5,889 1,528 1997 March 799 8,292 6,448 1,844 7,493 5,900 1,593 June 594 8,098 6,342 1,756 7,504 5,925 1,579 September 854 8,593 6,680 1,913 7,739 5,981 1,758 December 702 8,731 6,727 2,004 8,029 6,068 1,961 1998 March 747 8,788 6,633 2,155 8,041 6,107 1,934 June 666 8,722 6,569 2,153 8,056 6,218 1,838 September 659 8,539 6,574 1,965 7,880 6,161 1,719 December 759 8,576 6,778 1,798 7,817 6,060 1,757 1999 March 380 8,744 6,733 2,011 8,364 6,466 1,898 June 569 8,800 6,788 2,012 8,231 6,419 1,812 September 548 8,817 6,871 1,946 8,269 6,397 1,872 December 1,105 9,144 7,112 2,032 8,039 6,264 1,775 2000 March 818 8,906 6,988 1,918 8,088 6,361 1,727 June 541 8,764 6,975 1,789 8,223 6,509 1,714 September 146 8,724 6,834 1,890 8,578 6,719 1,859 December 336 8,690 6,862 1,828 8,354 6,582 1,772 2001 March -101 8,555 6,768 1,787 8,656 6,756 1,900 June -771 8,254 6,439 1,815 9,025 7,149 1,876 September -1,380 7,749 5,990 1,759 9,129 7,174 1,955 December -871 7,893 6,055 1,838 8,764 6,995 1,769 2002 March -1 8,128 6,324 1,804 8,129 6,400 1,729 June -80 8,050 6,246 1,804 8,130 6,411 1,719 September -211 7,763 6,083 1,680 7,974 6,345 1,629 December -175 7,702 6,059 1,643 7,877 6,267 1,610 2003 March -404 7,472 5,932 1,540 7,876 6,321 1,555 June -142 7,560 6,033 1,527 7,702 6,138 1,564 September 72 7,396 5,897 1,499 7,324 5,893 1,431 December 344 7,646 6,063 1,583 7,302 5,816 1,486 2004 March 435 7,745 6,231 1,514 7,310 5,871 1,439 June 594 7,857 6,292 1,565 7,263 5,726 1,537 September 191 7,789 6,123 1,666 7,598 5,953 1,645 December 869 8,081 6,365 1,716 7,212 5,727 1,485 2005 March 325 7,635 6,171 1,464 7,310 5,852 1,458 June 574 7,932 6,311 1,621 7,358 5,873 1,485 September 628 8,055 6,423 1,632 7,427 5,915 1,512 December 551 7,818 6,293 1,525 7,267 5,888 1,379 2006 March 784 7,556 6,205 1,351 6,772 5,536 1,236 June 466 7,761 6,286 1,475 7,295 5,937 1,358 1 Net change is the difference between total gross job gains and total gross job losses. Table 2. Private sector gross job gains and job losses, as a percent of employment (1), seasonally adjusted Goods-producing (In thousands) Gross job gains Gross job losses Year 3 months ended Net change (1) Total Expanding Opening Total Contracting Closing establishments establishments establishments establishments 1992 September 22 1,975 1,559 416 1,953 1,572 381 December -66 1,885 1,524 361 1,951 1,577 374 1993 March -23 1,914 1,480 434 1,937 1,520 417 June 136 1,930 1,568 362 1,794 1,443 351 September 134 1,988 1,617 371 1,854 1,517 337 December 136 1,996 1,609 387 1,860 1,519 341 1994 March 16 1,884 1,537 347 1,868 1,513 355 June 329 2,098 1,685 413 1,769 1,410 359 September 284 2,076 1,694 382 1,792 1,476 316 December 109 1,993 1,638 355 1,884 1,520 364 1995 March 107 1,968 1,610 358 1,861 1,532 329 June 14 1,945 1,568 377 1,931 1,579 352 September 114 2,038 1,658 380 1,924 1,560 364 December 38 2,003 1,628 375 1,965 1,599 366 1996 March 9 1,957 1,587 370 1,948 1,608 340 June 161 2,026 1,648 378 1,865 1,518 347 September 78 1,995 1,621 374 1,917 1,574 343 December 119 2,025 1,646 379 1,906 1,546 360 1997 March 163 2,050 1,666 384 1,887 1,531 356 June 122 2,020 1,635 385 1,898 1,526 372 September 155 2,127 1,683 444 1,972 1,556 416 December 140 2,118 1,695 423 1,978 1,536 442 1998 March 138 2,101 1,647 454 1,963 1,557 406 June 120 2,071 1,625 446 1,951 1,562 389 September 27 1,980 1,605 375 1,953 1,599 354 December 66 2,006 1,681 325 1,940 1,562 378 1999 March -115 2,017 1,631 386 2,132 1,723 409 June 3 2,039 1,631 408 2,036 1,648 388 September 7 2,044 1,664 380 2,037 1,626 411 December 177 2,105 1,690 415 1,928 1,564 364 2000 March 186 2,105 1,723 382 1,919 1,540 379 June -1 1,996 1,652 344 1,997 1,615 382 September -189 1,941 1,588 353 2,130 1,722 408 December -54 1,962 1,619 343 2,016 1,641 375 2001 March -161 1,913 1,578 335 2,074 1,708 366 June -453 1,778 1,477 301 2,231 1,864 367 September -538 1,692 1,379 313 2,230 1,831 399 December -460 1,700 1,374 326 2,160 1,789 371 2002 March -252 1,762 1,464 298 2,014 1,651 363 June -252 1,739 1,429 310 1,991 1,611 380 September -198 1,682 1,380 302 1,880 1,535 345 December -237 1,652 1,359 293 1,889 1,551 338 2003 March -240 1,692 1,395 297 1,932 1,579 353 June -240 1,657 1,378 279 1,897 1,558 339 September -150 1,605 1,343 262 1,755 1,443 312 December -32 1,665 1,391 274 1,697 1,391 306 2004 March 94 1,764 1,487 277 1,670 1,372 298 June 49 1,696 1,444 252 1,647 1,334 313 September -24 1,667 1,403 264 1,691 1,366 325 December 97 1,734 1,440 294 1,637 1,340 297 2005 March 34 1,720 1,454 266 1,686 1,371 315 June 34 1,713 1,445 268 1,679 1,381 298 September 35 1,698 1,427 271 1,663 1,371 292 December 116 1,722 1,463 259 1,606 1,338 268 2006 March 168 1,713 1,466 247 1,545 1,302 243 June 29 1,673 1,434 239 1,644 1,373 271 1 Net change is the difference between total gross job gains and total gross job losses. Table 3: Private sector gross job gains and losses by industry, seasonally adjusted Gross job gains and job losses Gross job gains and job losses (in thousands) as a percent of employment Category 3 months ended 3 months ended June Sept. Dec. Mar. June June Sept. Dec. Mar. June 2005 2005 2005 2006 2006 2005 2005 2005 2006 2006 Total private (1) Gross job gains 7,932 8,055 7,818 7,556 7,761 7.2 7.3 7.1 6.7 6.9 At expanding establishments 6,311 6,423 6,293 6,205 6,286 5.7 5.8 5.7 5.5 5.6 At opening establishments 1,621 1,632 1,525 1,351 1,475 1.5 1.5 1.4 1.2 1.3 Gross job losses 7,358 7,427 7,267 6,772 7,295 6.6 6.8 6.5 6.0 6.5 At contracting establishments 5,873 5,915 5,888 5,536 5,937 5.3 5.4 5.3 4.9 5.3 At closing establishments 1,485 1,512 1,379 1,236 1,358 1.3 1.4 1.2 1.1 1.2 Net employment change 574 628 551 784 466 0.6 .5 .6 .7 .4 Goods-producing Gross job gains 1,713 1,698 1,722 1,713 1,673 7.4 7.4 7.4 7.2 7.1 At expanding establishments 1,445 1,427 1,463 1,466 1,434 6.2 6.2 6.3 6.2 6.1 At opening establishments 268 271 259 247 239 1.2 1.2 1.1 1.0 1.0 Gross job losses 1,679 1,663 1,606 1,545 1,644 7.3 7.2 6.8 6.5 6.9 At contracting establishments 1,381 1,371 1,338 1,302 1,373 6.0 5.9 5.7 5.5 5.8 At closing establishments 298 292 268 243 271 1.3 1.3 1.1 1.0 1.1 Net employment change 34 35 116 168 29 .1 .2 .6 .7 .2 Natural resources and mining Gross job gains 288 265 279 279 286 16.7 15.5 16.1 15.7 16.2 At expanding establishments 247 224 238 240 246 14.3 13.1 13.7 13.5 13.9 At opening establishments 41 41 41 39 40 2.4 2.4 2.4 2.2 2.3 Gross job losses 285 265 265 275 265 16.5 15.5 15.2 15.6 15.0 At contracting establishments 243 224 226 235 228 14.1 13.1 13.0 13.3 12.9 At closing establishments 42 41 39 40 37 2.4 2.4 2.2 2.3 2.1 Net employment change 3 0 14 4 21 .2 .0 .9 .1 1.2 Construction Gross job gains 859 868 862 910 828 11.9 11.9 11.6 11.9 10.7 At expanding establishments 692 699 699 747 678 9.6 9.6 9.4 9.8 8.8 At opening establishments 167 169 163 163 150 2.3 2.3 2.2 2.1 1.9 Gross job losses 786 782 774 742 830 10.9 10.7 10.5 9.7 10.8 At contracting establishments 617 614 618 596 668 8.6 8.4 8.4 7.8 8.7 At closing establishments 169 168 156 146 162 2.3 2.3 2.1 1.9 2.1 Net employment change 73 86 88 168 -2 1.0 1.2 1.1 2.2 -.1 Manufacturing Gross job gains 566 565 581 524 559 4.0 4.0 4.1 3.7 3.9 At expanding establishments 506 504 526 479 510 3.6 3.6 3.7 3.4 3.6 At opening establishments 60 61 55 45 49 .4 .4 .4 0 3 .3 Gross job losses 608 616 567 528 549 4.3 4.4 4.0 3.7 3.9 At contracting establishments 521 533 494 471 477 3.7 3.8 3.5 3.3 3.4 At closing establishments 87 83 73 57 72 0.6 .6 .5 .4 .5 Net employment change -42 -51 14 -4 10 -.3 -.4 .1 .0 .0 Service-providing(1) Gross job gains 6,219 6,357 6,096 5,843 6,088 7.2 7.3 6.9 6.6 6.9 At expanding establishments 4,866 4,996 4,830 4,739 4,852 5.6 5.7 5.5 5.4 5.5 At opening establishments 1,353 1,361 1,266 1,104 1,236 1.6 1.6 1.4 1.2 1.4 Gross job losses 5,679 5,764 5,661 5,227 5,651 6.6 6.6 6.5 5.9 6.3 At contracting establishments 4,492 4,544 4,550 4,234 4,564 5.2 5.2 5.2 4.8 5.1 At closing establishments 1,187 1,220 1,111 993 1,087 1.4 1.4 1.3 1.1 1.2 Net employment change 540 593 435 616 437 .6 .7 .4 .7 .6 Wholesale trade Gross job gains 337 338 320 311 328 5.9 5.8 5.5 5.3 5.6 At expanding establishments 271 272 263 262 270 4.7 4.7 4.5 4.5 4.6 At opening establishments 66 66 57 49 58 1.2 1.1 1.0 0.8 1.0 Gross job losses 300 311 302 288 288 5.3 5.4 5.2 4.9 4.9 At contracting establishments 228 241 234 223 223 4.0 4.2 4.0 3.8 3.8 At closing establishments 72 70 68 65 65 1.3 1.2 1.2 1.1 1.1 Net employment change 37 27 18 23 40 .6 .4 .3 .4 .7 Retail trade Gross job gains 1,047 1,074 1,058 1,048 1,053 6.8 7.0 6.9 6.8 6.8 At expanding establishments 876 895 884 905 870 5.7 5.8 5.8 5.9 5.6 At opening establishments 171 179 174 143 183 1.1 1.2 1.1 .9 1.2 Gross job losses 989 1,063 1,015 971 1,074 6.5 6.9 6.6 6.3 7.0 At contracting establishments 841 888 865 828 926 5.5 5.8 5.6 5.4 6.0 At closing establishments 148 175 150 143 148 1.0 1.1 1.0 .9 1.0 Net employment change 58 11 43 77 -21 .3 .1 .3 .5 -.2 Transportation and warehousing Gross job gains 248 254 268 232 242 6.0 6.2 6.4 5.5 5.8 At expanding establishments 203 218 226 201 205 4.9 5.3 5.4 4.8 4.9 At opening establishments 45 36 42 31 37 1.1 .9 1.0 .7 .9 Gross job losses 262 236 231 228 227 6.4 5.8 5.5 5.4 5.4 At contracting establishments 212 188 188 194 188 5.2 4.6 4.5 4.6 4.5 At closing establishments 50 48 43 34 39 1.2 1.2 1.0 .8 .9 Net employment change -14 18 37 4 15 -.4 .4 .9 .1 .4 Utilities Gross job gains 15 13 14 11 13 2.8 2.4 2.6 2.0 2.4 At expanding establishments 13 11 13 10 12 2.4 2.0 2.4 1.8 2.2 At opening establishments 2 2 1 1 1 .4 .4 .2 .2 .2 Gross job losses 18 12 16 11 13 3.2 2.2 2.9 2.0 2.4 At contracting establishments 15 11 11 9 11 2.7 2.0 2.0 1.6 2.0 At closing establishments 3 1 5 2 2 .5 .2 .9 .4 .4 Net employment change -3 1 -2 0 0 -4 .2 -.3 .0 .0 Information Gross job gains 155 170 152 139 146 5.1 5.5 4.9 4.6 4.8 At expanding establishments 126 141 127 121 123 4.1 4.6 4.1 4.0 4.0 At opening establishments 29 29 25 18 23 1.0 .9 .8 .6 .8 Gross job losses 153 154 156 142 140 5.0 5.0 5.1 4.6 4.6 At contracting establishments 119 127 121 117 112 3.9 4.1 4.0 3.8 3.7 At closing establishments 34 27 35 25 28 1.1 .9 1.1 .8 .9 Net employment change 2 16 -4 -3 6 .1 .5 -.2 .0 .2 Financial activities Gross job gains 475 480 472 408 447 5.9 6.0 5.8 5.0 5.5 At expanding establishments 369 371 359 331 352 4.6 4.6 4.4 4.1 4.3 At opening establishments 106 109 113 77 95 1.3 1.4 1.4 .9 1.2 Gross job losses 439 413 434 404 432 5.5 5.2 5.4 5.0 5.3 At contracting establishments 320 312 329 315 333 4.0 3.9 4.1 3.9 4.1 At closing establishments 119 101 105 89 99 1.5 1.3 1.3 1.1 1.2 Net employment change 36 67 38 4 15 .4 .8 .4 .0 .2 Professional and business services Gross job gains 1,456 1,523 1,432 1,279 1,428 8.7 9.0 8.4 7.4 8.2 At expanding establishments 1,178 1,242 1,163 1,060 1,169 7.0 7.3 6.8 6.1 6.7 At opening establishments 278 281 269 219 259 1.7 1.7 1.6 1.3 1.5 Gross job losses 1,332 1,311 1,303 1,169 1,272 7.9 7.7 7.6 6.7 7.3 At contracting establishments 1,028 1,006 1,041 945 992 6.1 5.9 6.1 5.4 5.7 At closing establishments 304 305 262 224 280 1.8 1.8 1.5 1.3 1.6 Net employment change 124 212 129 110 156 .8 1.3 .8 .7 .9 Education and health services Gross job gains 800 811 766 771 776 4.9 4.9 4.6 4.6 4.6 At expanding establishments 651 677 645 659 658 4.0 4.1 3.9 3.9 3.9 At opening establishments 149 134 121 112 118 .9 .8 .7 .7 .7 Gross job losses 701 691 699 645 713 4.3 4.2 4.2 3.9 4.2 At contracting establishments 567 556 572 529 594 3.5 3.4 3.4 3.2 3.5 At closing establishments 134 135 127 116 119 .8 .8 .8 .7 .7 Net employment change 99 120 67 126 63 .6 .7 .4 .7 .4 Leisure and hospitality Gross job gains 1,212 1,202 1,175 1,194 1,200 9.5 9.4 9.2 9.3 9.2 At expanding establishments 918 909 893 927 926 7.2 7.1 7.0 7.2 7.1 At opening establishments 294 293 282 267 274 2.3 2.3 2.2 2.1 2.1 Gross job losses 1,135 1,219 1,165 1,046 1,169 8.9 9.5 9.0 8.1 9.0 At contracting establishments 907 961 941 842 949 7.1 7.5 7.3 6.5 7.3 At closing establishments 228 258 224 204 220 1.8 2.0 1.7 1.6 1.7 Net employment change 77 -17 10 148 31 .6 -.1 .2 1.2 .2 Other services Gross job gains 309 297 289 293 307 8.1 7.8 7.6 7.7 8.0 At expanding establishments 239 234 231 240 247 6.3 6.1 6.1 6.3 6.4 At opening establishments 70 63 58 53 60 1.8 1.7 1.5 1.4 1.6 Gross job losses 300 309 296 281 284 7.8 8.1 7.8 7.4 7.3 At contracting establishments 234 238 231 217 221 6.1 6.2 6.1 5.7 5.7 At closing establishments 66 71 65 64 63 1.7 1.9 1.7 1.7 1.6 Net employment change 9 -12 -7 12 23 .3 -.3 -.2 .3 .7 1 Includes unclassified sector, not shown separately. Table 4. Private sector percentage share (1) of gross job gains and gross job losses, seasonally adjusted Category: Shares (percent) 3 months ended June 2005 Sept. 2005 Dec. 2005 Mar. 2006 June 2006 Total Private Gross job gains 100.0 100.0 100.0 100.0 100.0 Expanding firms 100.0 100.0 100.0 100.0 100.0 Opening firms 100.0 100.0 100.0 100.0 100.0 Gross job losses 100.0 100.0 100.0 100.0 100.0 Contracting firms 100.0 100.0 100.0 100.0 100.0 Closing firms 100.0 100.0 100.0 100.0 100.0 Net employment change 100.0 100.0 100.0 100.0 100.0 Size Class 1 - 4 employees Gross job gains 15.2 15.1 15.5 15.7 15.0 Expanding firms 7.1 6.9 7.2 7.4 7.1 Opening firms 54.9 56.3 60.0 59.4 57.5 Gross job losses 15.7 15.6 15.6 17.0 16.0 Contracting firms 7.8 7.6 8.1 8.4 8.1 Closing firms 54.7 52.9 55.9 60.0 57.8 Net employment change 9.7 10.4 14.8 5.8 2.1 Size Class 5 - 9 employees Gross job gains 11.9 11.7 11.7 12.3 11.9 Expanding firms 10.9 10.7 10.9 11.5 11.0 Opening firms 16.9 16.9 16.2 16.9 16.6 Gross job losses 12.5 12.3 12.6 13.0 12.6 Contracting firms 11.6 11.4 11.9 12.4 11.9 Closing firms 16.5 16.1 16.5 16.5 16.4 Net employment change 5.8 6.7 2.7 6.8 2.4 Size Class 10 - 19 employees Gross job gains 12.2 11.9 12.0 12.7 12.2 Expanding firms 12.3 11.9 12.2 13.0 12.4 Opening firms 11.8 11.7 10.7 11.0 11.2 Gross job losses 12.4 12.4 12.8 13.0 12.7 Contracting firms 12.7 12.6 13.0 13.4 13.0 Closing firms 11.3 11.3 11.3 10.8 10.9 Net employment change 9.9 6.8 3.7 10.2 6.4 Size Class 20 - 49 employees Gross job gains 14.5 13.9 13.9 14.9 14.6 Expanding firms 15.6 14.9 15.1 16.3 15.7 Opening firms 9.2 8.9 7.9 7.7 8.5 Gross job losses 14.2 14.5 14.7 14.4 14.4 Contracting firms 15.3 15.7 15.9 15.8 15.6 Closing firms 8.8 9.1 8.4 7.7 8.4 Net employment change 17.8 8.3 5.8 18.9 17.0 Size Class 50 - 99 employees Gross job gains 9.1 8.7 8.7 9.3 9.1 Expanding firms 10.3 9.7 9.7 10.6 10.3 Opening firms 3.5 3.3 3.0 2.5 3.1 Gross job losses 8.6 9.0 9.1 8.7 8.9 Contracting firms 9.7 10.1 10.2 9.9 9.9 Closing firms 3.6 3.7 3.1 2.8 3.2 Net employment change 14.8 5.4 4.2 13.8 12.5 Size Class 100 - 249 employees Gross job gains 9.8 9.3 9.1 9.7 9.8 Expanding firms 11.3 10.7 10.5 11.2 11.3 Opening firms 2.3 2.0 1.5 1.3 1.5 Gross job losses 9.2 9.6 9.6 8.8 9.1 Contracting firms 10.5 11.1 10.9 10.2 10.5 Closing firms 2.6 2.5 2.2 1.5 2.2 Net employment change 16.8 6.5 3.9 16.6 17.8 Size Class 250 - 499 employees Gross job gains 5.9 5.8 5.5 5.7 5.9 Expanding firms 6.9 6.8 6.4 6.7 6.9 Opening firms .8 .6 .4 .4 .4 Gross job losses 5.4 5.6 5.7 5.1 5.3 Contracting firms 6.3 6.5 6.6 6.0 6.2 Closing firms 1.0 1.0 .9 .4 .7 Net employment change 10.9 7.7 3.4 10.4 12.7 Size Class 500 - 999 employees Gross job gains 4.9 4.8 4.5 4.5 4.8 Expanding firms 5.8 5.7 5.3 5.3 5.7 Opening firms .3 .3 .2 .3 .2 Gross job losses 4.6 4.4 4.7 3.9 4.4 Contracting firms 5.4 5.2 5.5 4.6 5.1 Closing firms .7 .8 .7 .2 .3 Net employment change 8.1 8.3 2.1 9.6 10.8 Size Class 1,000 or more employees Gross job gains 16.5 19.0 19.1 15.2 16.7 Expanding firms 19.8 22.7 22.7 18.0 19.6 Opening firms .2 .0 .1 .5 1.0 Gross job losses 17.4 16.7 15.2 16.1 16.6 Contracting firms 20.7 19.7 17.9 19.3 19.7 Closing firms .8 2.5 1.0 .1 .1 Net employment change 6.2 39.8 59.4 7.9 18.3 1 Share measures the percent of the category represented by each firm size class