For release 10:00 a.m. (EST), Wednesday, January 29, 2020                                   	USDL-20-0137

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 2019

From March 2019 to June 2019, gross job gains from opening and expanding private-sector
establishments were 7.6 million, an increase of 230,000 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 573,000 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 182,000 jobs in the private sector during the second 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 second quarter of 2019, 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 6.2
million in the second quarter of 2019, an increase of 191,000 jobs compared to the previous quarter.
Opening establishments accounted for 1.4 million of the jobs gained in the second quarter of 2019, an
increase of 39,000 jobs from the previous quarter. (See tables A, 1, 2, and 3.)

Gross Job Losses

In the second quarter of 2019, gross job losses represented 5.9 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 second quarter of
2019, an increase of 429,000 jobs from the prior quarter. In the second quarter of 2019, closing
establishments lost 1.3 million jobs, an increase of 144,000 jobs from the previous quarter. (See tables A,
1, 2, and 3.)

Establishment Births and Deaths

In the second quarter of 2019, the number of establishment births (a subset of the openings data)
increased by 1,000, to a total of 257,000 establishments. These new establishments accounted for
848,000 jobs, an increase of 34,000 jobs from the previous quarter. Data for establishment deaths (a
subset of the closings data) are available through the third quarter of 2018, when 787,000 jobs were
lost at 231,000 establishments, an increase of 13,000 jobs from the second quarter of 2018. (See Technical
Note and table 8.)

Industries

Gross job gains exceeded gross job losses in 8 of 13 industries in the second quarter of 2019. The service-
providing industries experienced a net job increase of 161,000 jobs in the second quarter of 2019. Within
service-providing industries, professional and business services had the largest over-the-quarter net job
increase, with a gain of 108,000 jobs. This was the result of 1,474,000 gross job gains and 1,366,000 gross
job losses. The retail trade and leisure and hospitality sectors showed declines in the second quarter of
2019, with 101,000 and 55,000 net jobs losses respectively. The goods-producing industries experienced a
net job increase of 21,000 jobs in the second quarter of 2019. Of the goods-producing industries, natural
resources and mining experienced a net increase of 16,000 jobs, construction added 15,000 jobs, while the
manufacturing sector showed a net loss of 10,000 jobs. (See table 3.)

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

---------------------------------------------------------------------------------------------
                                          |                  3 months ended                 
                 Category                 |    June |   Sept. |    Dec. |    Mar. |    June
                                          |    2018 |    2018 |    2018 |    2019 |    2019
---------------------------------------------------------------------------------------------
                                          |              Levels (in thousands)              
                                          |--------------------------------------------------
 Gross job gains......................... |   7,655 |   7,499 |   7,768 |   7,375 |   7,605
        At expanding establishments...... |   6,257 |   6,122 |   6,318 |   6,038 |   6,229
        At opening establishments........ |   1,398 |   1,377 |   1,450 |   1,337 |   1,376
                                          |         |         |         |         |        
 Gross job losses........................ |   7,254 |   7,432 |   6,957 |   6,850 |   7,423
        At contracting establishments.... |   5,967 |   6,113 |   5,626 |   5,649 |   6,078
        At closing establishments........ |   1,287 |   1,319 |   1,331 |   1,201 |   1,345
                                          |         |         |         |         |        
 Net employment change (1)............... |     401 |      67 |     811 |     525 |     182
                                          |         |         |         |         |        
                                          |--------------------------------------------------
                                          |                 Rates (percent)                 
                                          |--------------------------------------------------
 Gross job gains......................... |     6.1 |     6.0 |     6.3 |     5.9 |     6.0
        At expanding establishments...... |     5.0 |     4.9 |     5.1 |     4.8 |     4.9
        At opening establishments........ |     1.1 |     1.1 |     1.2 |     1.1 |     1.1
                                          |         |         |         |         |        
 Gross job losses........................ |     5.8 |     6.0 |     5.6 |     5.5 |     5.9
        At contracting establishments.... |     4.8 |     4.9 |     4.5 |     4.5 |     4.8
        At closing establishments........ |     1.0 |     1.1 |     1.1 |     1.0 |     1.1
                                          |         |         |         |         |        
 Net employment change (1)............... |     0.3 |     0.0 |     0.7 |     0.4 |     0.1
---------------------------------------------------------------------------------------------
(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 second quarter of 2019, firms with 1-49 employees had a net employment gain of 55,000. Firms 
with 50-249 employees had a net employment gain of 93,000. Firms with 250 or more employees had a 
net employment gain of 39,000. (See tables 4 and 5.)

States

Gross job gains exceeded gross job losses in 26 states, the District of Columbia, Puerto Rico, and
the Virgin Islands in the second 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 Third Quarter 2019 are scheduled to be released on 
Wednesday, April 29, 2020 at 10:00 a.m. (EDT).