Business Employment Dynamics Summary

For release 10:00 a.m. (EST), Wednesday, November 8, 2017                                USDL-17-1481

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 2017

From December 2016 to March 2017, gross job gains from opening and expanding private-sector 
establishments were 7.3 million, a decrease of 127,000 jobs over the 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 391,000 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 654,000 jobs in the private-sector during the first quarter of 2017. (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 (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 2017, 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 6.0 
million in the first quarter of 2017, a decrease of 21,000 compared to the previous quarter. Opening 
establishments accounted for 1.3 million of the jobs gained in the first quarter of 2017, a decrease of 
106,000 jobs from the previous quarter. (See tables A, 1, 2, and 3.)

Gross Job Losses

In the first quarter of 2017, 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 2017, a 
decrease of 239,000 jobs from the prior quarter. In the first quarter of 2017, closing establishments lost 
1.2 million jobs, a decrease of 152,000 jobs from the previous quarter. (See tables A, 1, 2, and 3.)

Establishment Births and Deaths

In the first quarter of 2017, the number of establishment births (a subset of the openings data, see the 
Technical Note for more information) increased by 1,000, to a total of 240,000 establishments. These 
new establishments accounted for 800,000 jobs, a decrease of 68,000 jobs from the previous quarter. 
Data for establishment deaths (a subset of the closings data) are available through the second quarter of 
2016, when 724,000 jobs were lost at 214,000 establishments. (See table 8.)

Industries

Gross job gains exceeded gross job losses in 12 of 13 industries in the first quarter of 2017. The service-
providing industries experienced a net job increase of 451,000 jobs in the first quarter of 2017. Within 
service-providing industries, leisure and hospitality had the largest over-the-quarter net job increase, 
with a gain of 172,000 jobs. The net job increase in leisure and hospitality was the result of 1.3 million 
gross job gains and 1.1 million gross job losses. The transportation and warehousing industry had the 
only net job decrease over the quarter. The goods-producing industries experienced a net job increase of 
203,000 jobs in the first quarter of 2017. All of the goods-producing industries had positive net gains. 
Construction added 125,000 jobs, natural resources and mining added 55,000 jobs, and manufacturing 
added 23,000 jobs. (See table 3.)

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

---------------------------------------------------------------------------------------------
                                          |                  3 months ended                 
                 Category                 |    Mar. |    June |   Sept. |    Dec. |    Mar.
                                          |    2016 |    2016 |    2016 |    2016 |    2017
---------------------------------------------------------------------------------------------
                                          |              Levels (in thousands)              
                                          |--------------------------------------------------
 Gross job gains......................... |   7,139 |   7,453 |   7,689 |   7,455 |   7,328
        At expanding establishments...... |   5,855 |   6,083 |   6,232 |   6,040 |   6,019
        At opening establishments........ |   1,284 |   1,370 |   1,457 |   1,415 |   1,309
                                          |         |         |         |         |        
 Gross job losses........................ |   6,883 |   7,157 |   7,008 |   7,065 |   6,674
        At contracting establishments.... |   5,685 |   5,847 |   5,760 |   5,760 |   5,521
        At closing establishments........ |   1,198 |   1,310 |   1,248 |   1,305 |   1,153
                                          |         |         |         |         |        
 Net employment change (1)............... |     256 |     296 |     681 |     390 |     654
                                          |         |         |         |         |        
                                          |--------------------------------------------------
                                          |                 Rates (percent)                 
                                          |--------------------------------------------------
 Gross job gains......................... |     6.0 |     6.2 |     6.4 |     6.2 |     6.0
        At expanding establishments...... |     4.9 |     5.1 |     5.2 |     5.0 |     4.9
        At opening establishments........ |     1.1 |     1.1 |     1.2 |     1.2 |     1.1
                                          |         |         |         |         |        
 Gross job losses........................ |     5.7 |     6.0 |     5.8 |     5.9 |     5.4
        At contracting establishments.... |     4.7 |     4.9 |     4.8 |     4.8 |     4.5
        At closing establishments........ |     1.0 |     1.1 |     1.0 |     1.1 |     0.9
                                          |         |         |         |         |        
 Net employment change (1)............... |     0.3 |     0.2 |     0.6 |     0.3 |     0.6
---------------------------------------------------------------------------------------------
(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 2017, firms with 1-49 employees had a net employment gain of 369,000. Firms 
with 50-249 employees had a net employment gain of 197,000. Firms with 250 or more employees had a 
net employment gain of 120,000. Of the 2.0 million net jobs created over the last four quarters, firms 
with 1-49 employees contributed 33.8 percent of net job growth, while firms with 50-249 employees 
contributed 22.5 percent, and firms with 250 or more employees contributed 43.7 percent. (See tables 4 
and 5.)

States

Gross job gains exceeded gross job losses in 44 states and the District of Columbia in the first quarter of 
2017. Over this period, 27 states exceeded the U.S. rate of gross job gains as a percent of employment, 
which was 6.0 percent. Alaska had the highest rate of gross job gains as a percent of employment at 9.4 
percent. Hawaii, Tennessee, and Puerto Rico had the lowest rate of gross job gains as a percent of 
employment at 5.1 percent. Alaska also had the highest rate of gross job losses as a percent of 
employment at 9.8 percent, above the national rate of 5.4 percent. Minnesota and the District of 
Columbia had the lowest rate of gross job losses as a percent of employment at 4.7 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 2017 are scheduled to be released on 
Wednesday, January 24, 2018 at 10:00 a.m. (EST).

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|                                                                                                          |
|                           Revisions to Business Employment Dynamics (BED) Data                           |
|                                                                                                          |
| 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         |
| seasonally adjusted data and five years of seasonally adjusted data.                                     |
|                                                                                                          |
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Last Modified Date: November 08, 2017