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Economic News Release
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Business Employment Dynamics Summary

For release 10:00 a.m. (EDT), Wednesday, April 29, 2020                                   	USDL-20-0718

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 2019

From June 2019 to September 2019, gross job gains from opening and expanding private-sector
establishments were 7.3 million, a decrease of 264,000 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 7.3 million, a decrease of 93,000 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 11,000 jobs in the private sector during the third quarter of 2019. (See tables A and
1.)

The change in the number of jobs over time is the net result of increases and decreases in employment
that occur at all private businesses in the economy. Business Employment Dynamics statistics track
these changes in employment at private-sector establishments from the third month of one quarter to the
third month of the next. The difference between the number of gross job gains and the number of gross
job losses is the net change in employment. (See Technical Note.) The BED data series include gross job
gains and gross job losses by industry subsector, 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

In the third quarter of 2019, gross job gains represented 5.8 percent of private-sector employment. Gross
job gains are the sum of increases in employment due to expansions at existing establishments and the
addition of new jobs at opening establishments. Gross job gains at expanding establishments totaled 6.0
million in the third quarter of 2019, a decrease of 250,000 jobs compared to the previous quarter.
Opening establishments accounted for 1.4 million of the jobs gained in the third quarter of 2019, a
decrease of 14,000 jobs from the previous quarter. (See tables A, 1, 2, and 3.)

Gross Job Losses

In the third quarter of 2019, gross job losses represented 5.8 percent of private-sector employment.
Gross job losses are the result of contractions in employment at existing establishments and the loss of
jobs at closing establishments. Contracting establishments lost 6.1 million jobs in the third quarter of
2019, a decrease of 28,000 jobs from the prior quarter. In the third quarter of 2019, closing
establishments lost 1.3 million jobs, a decrease of 65,000 jobs from the previous quarter. (See tables A,
1, 2, and 3.)

Establishment Births and Deaths

In the third quarter of 2019, the number of establishment births (a subset of the openings data)
decreased by 7,000, to a total of 250,000 establishments. These new establishments accounted for
842,000 jobs, a decrease of 6,000 jobs from the previous quarter. Data for establishment deaths (a
subset of the closings data) are available through the fourth quarter of 2018, when 762,000 jobs were
lost at 222,000 establishments, a decrease of 25,000 jobs from the third quarter of 2018. (See Technical
Note and table 8.)

Industries

Gross job gains exceeded gross job losses in 5 of 13 industries in the third quarter of 2019. The service-
providing industries experienced a net job increase of 92,000 jobs in the third quarter of 2019. Within
service-providing industries, education and health services had the largest over-the-quarter net job
increase, with a gain of 112,000 jobs. This was the result of 1,037,000 gross job gains and 925,000 gross
job losses. The leisure and hospitality and retail trade sectors showed declines in the third quarter of
2019, with 87,000 and 86,000 net jobs losses respectively. The goods-producing industries experienced a
net job decrease of 81,000 jobs in the third quarter of 2019. Of the goods-producing industries,
manufacturing experienced a net decrease of 67,000 jobs, the natural resources and mining sector
declined by 13,000 jobs, and the construction sector showed a net loss of 1,000 jobs. (See table 3.)


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

---------------------------------------------------------------------------------------------
                                          |                  3 months ended                 
                 Category                 |    Sept.|    Dec. |    Mar. |    June |   Sept.
                                          |    2018 |    2018 |    2019 |    2019 |    2019
---------------------------------------------------------------------------------------------
                                          |              Levels (in thousands)              
                                          |--------------------------------------------------
 Gross job gains......................... |   7,499 |   7,768 |   7,375 |   7,605 |   7,341
        At expanding establishments...... |   6,122 |   6,318 |   6,038 |   6,229 |   5,979
        At opening establishments........ |   1,377 |   1,450 |   1,337 |   1,376 |   1,362
                                          |         |         |         |         |        
 Gross job losses........................ |   7,432 |   6,957 |   6,850 |   7,423 |   7,330
        At contracting establishments.... |   6,113 |   5,626 |   5,649 |   6,078 |   6,050
        At closing establishments........ |   1,319 |   1,331 |   1,201 |   1,345 |   1,280
                                          |         |         |         |         |        
 Net employment change (1)............... |      67 |     811 |     525 |     182 |      11
                                          |         |         |         |         |        
                                          |--------------------------------------------------
                                          |                 Rates (percent)                 
                                          |--------------------------------------------------
 Gross job gains......................... |     6.0 |     6.3 |     5.9 |     6.0 |     5.8
        At expanding establishments...... |     4.9 |     5.1 |     4.8 |     4.9 |     4.7
        At opening establishments........ |     1.1 |     1.2 |     1.1 |     1.1 |     1.1
                                          |         |         |         |         |        
 Gross job losses........................ |     6.0 |     5.6 |     5.5 |     5.9 |     5.8
        At contracting establishments.... |     4.9 |     4.5 |     4.5 |     4.8 |     4.8
        At closing establishments........ |     1.1 |     1.1 |     1.0 |     1.1 |     1.0
                                          |         |         |         |         |        
 Net employment change (1)............... |     0.0 |     0.7 |     0.4 |     0.1 |     0.0
---------------------------------------------------------------------------------------------
(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.

Firm Size

In the third quarter of 2019, firms with 1-49 employees had a net employment loss of 55,000. Firms 
with 50-249 employees had a net employment loss of 38,000. Firms with 250 or more employees had a 
net employment gain of 34,000. (See tables 4 and 5.)

States

Gross job gains exceeded gross job losses in 21 states, the District of Columbia, Puerto Rico, and
the Virgin Islands in the third quarter of 2019. (See tables 6 and 7.)

For 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 answers to frequently asked  
questions. Additional information about the Business Employment Dynamics data can be found 
in the Technical Note of this release or can be obtained by emailing BDMinfo@bls.gov.

_____________
The Business Employment Dynamics for Fourth Quarter 2019 are scheduled to be released on 
Wednesday, July 29, 2020 at 10:00 a.m. (EDT).

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Last Modified Date: April 29, 2020