Business Employment Dynamics Summary

For release 10:00 a.m. (EST) 				USDL-17-0106
Wednesday, January 25, 2017	

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

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


	  BUSINESS EMPLOYMENT DYNAMICS:  SECOND QUARTER 2016, REVISED

(Note: This release was reissued on March 23, 2017, to correct a
the written analysis about firm size data and to correct data in
tables 4 and 5.)

From March 2016 to June 2016, gross job gains from opening 
and expanding private-sector establishments were 7.5 million, 
an increase of 486,000 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 7.2 
million, an increase of 373,000 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 307,000 jobs in 
the private-sector during the second 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.)

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 6.1 million in 
the second quarter of 2016, an increase of 278,000 jobs from the 
previous quarter. (See tables A, 1, and 3.)

Opening establishments accounted for 1.4 million jobs gained in the 
second quarter of 2016, an increase of 208,000 jobs from the previous 
quarter. (See tables A, 1, and 3.)

Contracting establishments lost 5.8 million jobs in the second quarter
of 2016, an increase of 212,000 jobs from the prior quarter. 
(See tables A, 1, and 3.)

In the second quarter of 2016, closing establishments lost 1.3 million 
jobs, an increase of 161,000 jobs from the previous quarter. 
(See tables A, 1, and 3.)

Gross job gains represented 6.2 percent of private-sector employment 
in the second quarter of 2016, while gross job losses represented 6.0
percent of private-sector employment. (See tables A, 2, and 3.)

In the second quarter of 2016, the number of establishment births 
(a subset of the openings data, see the Technical Note for more 
information) increased by 32,000 to 252,000 establishments. These
new establishments accounted for 889,000 jobs, an increase of 155,000
jobs from the previous quarter. (See table 8.)

Data for establishment deaths (a subset of the closings data) are 
available through the third quarter of 2015, when 704,000 jobs were
lost at 207,000 establishments. In the prior quarter, 735,000 jobs 
were lost at 213,000 establishments. (See table 8.)

During the second quarter of 2016, gross job gains exceeded gross job 
losses in 9 of 13 industries. The sector with the largest net job 
increase in the second quarter of 2016 was education and health
services (+74,000). The net job increase in the education and health
services sector was the result of 1.0 million gross job gains and 0.9
million gross job losses. The professional and business services sector
showed an increase in gross job gains in the second quarter of 2016 with
1.4 million, compared to 1.2 million in the previous quarter. The level
of gross job losses in that sector remained relatively unchanged at 1.4
million in both the first and second quarters of 2016. The goods-producing
sectors experienced a net job decrease in the second quarter of 2016, the
result of 1.3 million gross job gains and 1.4 million gross job losses.
The modest net gain in the construction sector (+7,000) was not enough
to compensate for the net losses in the natural resources and mining
(-37,000) and manufacturing (-19,000) sectors. (See table 3.)


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

Category                                 3 months ended

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

                                      Levels (in thousands)
                                      
Gross job gains................ 7,588   7,338   7,843   6,977   7,463
 At expanding establishments... 6,244   5,972   6,375   5,778   6,056
 At opening establishments..... 1,344   1,366   1,468   1,199   1,407

Gross job losses............... 6,773   6,911   6,842   6,783   7,156
 At contracting establishments. 5,573   5,698   5,573   5,617   5,829
 At closing establishments..... 1,200   1,213   1,269   1,166   1,327

Net employment change(1).......   815     427   1,001     194     307
								
                                         Rates (percent)

Gross job gains................   6.4     6.3     6.6     5.8     6.2
 At expanding establishments...   5.3     5.1     5.4     4.8     5.0
 At opening establishments.....   1.1     1.2     1.2     1.0     1.2

Gross job losses...............   5.7     5.8     5.8     5.7     6.0
 At contracting establishments.   4.7     4.8     4.7     4.7     4.9
 At closing establishments.....   1.0     1.0     1.1     1.0     1.1

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

    (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 second quarter of 2016, firms with 1-49 employees had a net 
employment gain of 72,000. Firms with 50-249 employees had a net 
employment gain of 116,000. Firms with 250 or more employees had a net
employment gain of 114,000. (See tables 4 and 5.)

Of the 1.8 million net jobs created over the last four quarters, firms 
with 1-49 employees contributed 34 percent of net job growth, while
firms with 50-249 employees contributed 18 percent, and firms with 250
or more employees contributed 48 percent. (See tables 4 and 5.)
 
In the second quarter of 2016, gross job gains exceeded gross job 
losses in 29 states and the Virgin Islands. Alaska, North Dakota,
Oklahoma, and Wyoming have all experienced gross job losses in
excess of gross job gains for the past five quarters. Alaska had the
highest rate of gross job gains as a percent of employment at 10.3
percent, above the U.S. rate of 6.2 percent, as well as the highest
rate of gross job losses as a percent of employment at 11.9 percent,
above the U.S. rate of 6.0 percent. Indiana and Massachusetts had the
lowest rate of gross job losses as a percent of employment at 5.2
percent each. Indiana also had the lowest rate of gross job gains as
a percent of employment at 5.2 percent. (See tables 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 emailing BDMinfo@bls.gov. 

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| The Business Employment Dynamics for Third Quarter 2016 are scheduled  |
| to be released on Wednesday, April 26, 2017 at 10:00 a.m. (EDT).       |
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Last Modified Date: March 23, 2017