Business Employment Dynamics Summary

For release 10:00 a.m. (EST), Wednesday, November 7, 2018                                  	USDL-18-1787

Technical Information:	(202) 691-6553  *  BDMInfo@bls.gov  *  www.bls.gov/bdm
Media Contact:	        (202) 691-5902  *  PressOffice@bls.gov	

BUSINESS EMPLOYMENT DYNAMICS  FIRST QUARTER 2018

From December 2017 to March 2018, gross job gains from opening and expanding private-sector 
establishments were 7.4 million, a decrease of 420,000 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 6.7 million, a decrease of 181,000 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 740,000 jobs in the private sector during the first quarter of 2018. (See tables A 
and 1.)

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|                                                                                                          |
|                           Revisions to Business Employment Dynamics (BED) Data                           |
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| Data in this release incorporate annual revisions to the BED series. Annual revisions are published each |
| year with the release of first quarter data. These revisions cover the last four quarters of not season- |
| ally adjusted data and five years of seasonally adjusted data.                                           |
|                                                                                                          |
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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 (BED) 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 first 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 first quarter of 2018, a decrease of 312,000 compared to the previous quarter. Opening 
establishments accounted for 1.3 million of the jobs gained in the first quarter of 2018, a decrease of 
108,000 jobs from the previous quarter. (See tables A, 1, 2, and 3.)

Gross Job Losses

In the first quarter of 2018, gross job losses represented 5.4 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 5.5 million jobs in the first quarter of 2018, a 
decrease of 21,000 jobs from the prior quarter. In the first quarter of 2018, closing establishments lost 
1.1 million jobs, a decrease of 160,000 jobs from the previous quarter. (See tables A, 1, 2, and 3.)

Establishment Births and Deaths

In the first quarter of 2018, the number of establishment births (a subset of the openings data) 
increased by 4,000, to a total of 250,000 establishments. These new establishments accounted for 
817,000 jobs, a decrease of 36,000 jobs from the previous quarter. Data for establishment deaths (a 
subset of the closings data) are available through the second quarter of 2017, when 760,000 jobs were 
lost at 225,000 establishments, an increase of 101,000 jobs from the first quarter of 2017. (See Technical 
Note and table 8.)

Industries

Gross job gains exceeded gross job losses in 11 of 13 industries in the first quarter of 2018. The service-
providing industries experienced a net job increase of 524,000 jobs in the first quarter of 2018. Within 
service-providing industries, leisure and hospitality had the largest over-the-quarter net job increase, 
with a gain of 148,000 jobs. The net job increase in leisure and hospitality was the result of 1.3 million 
gross job gains and 1.2 million gross job losses. The transportation and warehousing industry had the 
only decrease among service-providing industries, with a loss of 70,000 jobs. The goods-producing 
industries experienced a net job increase of 216,000 jobs in the first quarter of 2018. Of the goods-
producing industries, construction added 132,000, manufacturing added 66,000 jobs, and natural 
resources and mining experienced a net increase of 18,000 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                 |    Mar. |    June |   Sept. |    Dec. |    Mar.
                                          |    2017 |    2017 |    2017 |    2017 |    2018
---------------------------------------------------------------------------------------------
                                          |              Levels (in thousands)              
                                          |--------------------------------------------------
 Gross job gains......................... |   7,423 |   7,624 |   7,311 |   7,826 |   7,406
        At expanding establishments...... |   6,088 |   6,255 |   5,959 |   6,383 |   6,071
        At opening establishments........ |   1,335 |   1,369 |   1,352 |   1,443 |   1,335
                                          |         |         |         |         |        
 Gross job losses........................ |   6,765 |   7,161 |   7,404 |   6,847 |   6,666
        At contracting establishments.... |   5,582 |   5,889 |   6,106 |   5,547 |   5,526
        At closing establishments........ |   1,183 |   1,272 |   1,298 |   1,300 |   1,140
                                          |         |         |         |         |        
 Net employment change (1)............... |     658 |     463 |     -93 |     979 |     740
                                          |         |         |         |         |        
                                          |--------------------------------------------------
                                          |                 Rates (percent)                 
                                          |--------------------------------------------------
 Gross job gains......................... |     6.1 |     6.2 |     6.0 |     6.4 |     6.0
        At expanding establishments...... |     5.0 |     5.1 |     4.9 |     5.2 |     4.9
        At opening establishments........ |     1.1 |     1.1 |     1.1 |     1.2 |     1.1
                                          |         |         |         |         |        
 Gross job losses........................ |     5.6 |     5.8 |     6.1 |     5.6 |     5.4
        At contracting establishments.... |     4.6 |     4.8 |     5.0 |     4.5 |     4.5
        At closing establishments........ |     1.0 |     1.0 |     1.1 |     1.1 |     0.9
                                          |         |         |         |         |        
 Net employment change (1)............... |     0.5 |     0.4 |    -0.1 |     0.8 |     0.6
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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 first quarter of 2018, firms with 1-49 employees had a net employment gain of 334,000. Firms 
with 50-249 employees had a net employment gain of 167,000. Firms with 250 or more employees had a 
net employment gain of 278,000. Of the 2.0 million net jobs created over the last four quarters, firms 
with 1-49 employees contributed 29.0 percent of net job growth, while firms with 50-249 employees 
contributed 20.4 percent, and firms with 250 or more employees contributed 50.6 percent. (See tables 4 
and 5.)

States
	
Gross job gains exceeded gross job losses in 45 states and the District of Columbia in the first quarter of 
2018. Alaska had the highest rate of gross job gains as a percent of employment at 9.8 percent, above the 
U.S. rate of 6.0 percent. Hawaii and Tennessee had the lowest rate of gross job gains as a percent of 
employment at 5.0 percent each. Alaska had the highest rate of gross job losses as a percent of 
employment at 8.8 percent, above the national rate of 5.4 percent. Michigan had the lowest rate of gross 
job losses as a percent of employment at 4.6 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.

_____________
The Business Employment Dynamics for Second Quarter 2018 are scheduled to be released on 
Wednesday, January 30, 2019 at 10:00 a.m. (EST).





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Last Modified Date: November 07, 2018