For release 10:00 a.m. (EDT), Wednesday, April 24, 2019 USDL-19-0696
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 2018
From June 2018 to September 2018, gross job gains from opening and expanding private-sector
establishments were 7.4 million, a decrease of 191,000 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 7.4 million, an increase of 219,000 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 27,000 jobs in the private sector during the third quarter of 2018. (See tables A and
1.)
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| South Carolina Business Employment Dynamics Data |
| |
| Business Employment Dynamics (BED) data for the first, second, and third quarter 2018 for South |
| Carolina show unusual movements, which may be a result of a change in reporting. These unusual |
| movements coincide with a modernization of the South Carolina unemployment insurance system. For |
| more information, please visit: www.bls.gov/cew/2018-notice-regarding-south-carolina-employment- |
| and-wages-data.htm |
| |
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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 2018, gross job gains represented 6.0 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 6.1
million in the third quarter of 2018, a decrease of 146,000 jobs compared to the previous quarter.
Opening establishments accounted for 1.3 million of the jobs gained in the third quarter of 2018, a
decrease of 45,000 jobs from the previous quarter. (See tables A, 1, 2, and 3.)
Gross Job Losses
In the third quarter of 2018, gross job losses represented 6.0 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
2018, an increase of 157,000 jobs from the prior quarter. In the third quarter of 2018, closing
establishments lost 1.3 million jobs, an increase of 62,000 jobs from the previous quarter. (See tables A,
1, 2, and 3.)
Establishment Births and Deaths
In the third quarter of 2018, the number of establishment births (a subset of the openings data)
decreased by 11,000, to a total of 252,000 establishments. These new establishments accounted for
859,000 jobs, a decrease of 19,000 jobs from the previous quarter. Data for establishment deaths (a
subset of the closings data) are available through the fourth quarter of 2017, when 732,000 jobs were
lost at 216,000 establishments, a decrease of 31,000 jobs from the third quarter of 2017. (See Technical
Note and table 8.)
Industries
Gross job gains exceeded gross job losses in 5 of 13 industries in the third quarter of 2018. The service-
providing industries experienced a net job increase of 39,000 jobs in the third quarter of 2018. Within
service-providing industries, education and health services had the largest over-the-quarter net job
increase, with a gain of 93,000 jobs. The net job increase in education and health services was the result
of 1.0 million gross job gains and 0.9 million gross job losses. The leisure and hospitality industry had
the largest decrease among service-providing industries, with a loss of 103,000 jobs. The goods-
producing industries experienced a net job decrease of 12,000 jobs in the third quarter of 2018. Of the
goods-producing industries, manufacturing added 10,000 jobs, natural resources and mining lost 7,000
jobs, and construction experienced a net decrease of 15,000 jobs. (See table 3.)
Table A. Three-month private sector gross job gains and losses, seasonally adjusted
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| 3 months ended
Category | Sept. | Dec. | Mar. | June | Sept.
| 2017 | 2017 | 2018 | 2018 | 2018
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| Levels (in thousands)
|--------------------------------------------------
Gross job gains......................... | 7,311 | 7,826 | 7,406 | 7,639 | 7,448
At expanding establishments...... | 5,959 | 6,383 | 6,071 | 6,245 | 6,099
At opening establishments........ | 1,352 | 1,443 | 1,335 | 1,394 | 1,349
| | | | |
Gross job losses........................ | 7,404 | 6,847 | 6,666 | 7,202 | 7,421
At contracting establishments.... | 6,106 | 5,547 | 5,526 | 5,942 | 6,099
At closing establishments........ | 1,298 | 1,300 | 1,140 | 1,260 | 1,322
| | | | |
Net employment change (1)............... | -93 | 979 | 740 | 437 | 27
| | | | |
|--------------------------------------------------
| Rates (percent)
|--------------------------------------------------
Gross job gains......................... | 6.0 | 6.4 | 6.0 | 6.1 | 6.0
At expanding establishments...... | 4.9 | 5.2 | 4.9 | 5.0 | 4.9
At opening establishments........ | 1.1 | 1.2 | 1.1 | 1.1 | 1.1
| | | | |
Gross job losses........................ | 6.1 | 5.6 | 5.4 | 5.8 | 6.0
At contracting establishments.... | 5.0 | 4.5 | 4.5 | 4.8 | 4.9
At closing establishments........ | 1.1 | 1.1 | 0.9 | 1.0 | 1.1
| | | | |
Net employment change (1)............... | -0.1 | 0.8 | 0.6 | 0.3 | 0.0
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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.
Firm Size
In the third quarter of 2018, firms with 1-49 employees had a net employment loss of 131,000. Firms
with 50-249 employees had a net employment loss of 37,000. Firms with 250 or more employees had a
net employment gain of 149,000. (See tables 4 and 5.)
States
Gross job gains exceeded gross job losses in 18 states in the third quarter of 2018. Among the states,
Alaska had the highest rate of gross job gains as a percent of employment at 8.9 percent, above the U.S.
rate of 6.0 percent. Michigan had the lowest rate of gross job gains as a percent of employment at 5.0
percent. Alaska had the highest rate of gross job losses as a percent of employment at 10.6 percent,
above the national rate of 6.0 percent. Arizona had the lowest rate of gross job losses as a percent of
employment at 5.0 percent. (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 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 can be obtained by emailing BDMinfo@bls.gov.
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The Business Employment Dynamics for Fourth Quarter 2018 are scheduled to be released on
Wednesday, July 24, 2019 at 10:00 a.m. (EDT).
