For release 10:00 a.m. (EST), Wednesday, January 30, 2019 USDL-19-0137
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 2018
From March 2018 to June 2018, gross job gains from opening and expanding private-sector
establishments were 7.6 million, an increase of 233,000 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 7.2 million, an increase of 536,000 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 437,000 jobs in the private sector during the second quarter of 2018. (See tables A
and 1.)
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| |
| Notice Regarding South Carolina Business Employment Dynamics Data |
| |
| Business Employment Dynamics (BED) data for first and second 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 second quarter of 2018, gross job gains represented 6.1 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 2018, an increase of 174,000 jobs compared to the previous quarter.
Opening establishments accounted for 1.4 million of the jobs gained in the second quarter of 2018, an
increase of 59,000 jobs from the previous quarter. (See tables A, 1, 2, and 3.)
Gross Job Losses
In the second quarter of 2018, 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 5.9 million jobs in the second quarter of
2018, an increase of 416,000 jobs from the prior quarter. In the second quarter of 2018, closing
establishments lost 1.3 million jobs, an increase of 120,000 jobs from the previous quarter. (See tables
A, 1, 2, and 3.)
Establishment Births and Deaths
In the second quarter of 2018, the number of establishment births (a subset of the openings data)
increased by 13,000, to a total of 263,000 establishments. These new establishments accounted for
878,000 jobs, an increase of 61,000 jobs from the previous quarter. Data for establishment deaths (a
subset of the closings data) are available through the third quarter of 2017, when 763,000 jobs were lost
at 226,000 establishments, an increase of 3,000 jobs from the second quarter of 2017. (See Technical
Note and table 8.)
Industries
Gross job gains exceeded gross job losses in 9 of 13 industries in the second quarter of 2018. The
service-providing industries experienced a net job increase of 295,000 jobs in the second quarter of
2018. Within service-providing industries, professional and business services had the largest over-the-
quarter net job increase, with a gain of 102,000 jobs. The net job increase in professional and business
services was the result of 1.5 million gross job gains and 1.4 million gross job losses. The retail trade
industry had the largest decrease among service-providing industries, with a loss of 53,000 jobs. The
goods-producing industries experienced a net job increase of 142,000 jobs in the second quarter of 2018.
Of the goods-producing industries, manufacturing added 63,000 jobs, construction added 51,000, and
natural resources and mining experienced a net increase of 28,000 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 | June | Sept. | Dec. | Mar. | June
| 2017 | 2017 | 2017 | 2018 | 2018
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| Levels (in thousands)
|--------------------------------------------------
Gross job gains......................... | 7,624 | 7,311 | 7,826 | 7,406 | 7,639
At expanding establishments...... | 6,255 | 5,959 | 6,383 | 6,071 | 6,245
At opening establishments........ | 1,369 | 1,352 | 1,443 | 1,335 | 1,394
| | | | |
Gross job losses........................ | 7,161 | 7,404 | 6,847 | 6,666 | 7,202
At contracting establishments.... | 5,889 | 6,106 | 5,547 | 5,526 | 5,942
At closing establishments........ | 1,272 | 1,298 | 1,300 | 1,140 | 1,260
| | | | |
Net employment change (1)............... | 463 | -93 | 979 | 740 | 437
| | | | |
|--------------------------------------------------
| Rates (percent)
|--------------------------------------------------
Gross job gains......................... | 6.2 | 6.0 | 6.4 | 6.0 | 6.1
At expanding establishments...... | 5.1 | 4.9 | 5.2 | 4.9 | 5.0
At opening establishments........ | 1.1 | 1.1 | 1.2 | 1.1 | 1.1
| | | | |
Gross job losses........................ | 5.8 | 6.1 | 5.6 | 5.4 | 5.8
At contracting establishments.... | 4.8 | 5.0 | 4.5 | 4.5 | 4.8
At closing establishments........ | 1.0 | 1.1 | 1.1 | 0.9 | 1.0
| | | | |
Net employment change (1)............... | 0.4 | -0.1 | 0.8 | 0.6 | 0.3
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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 second quarter of 2018, firms with 1-49 employees had a net employment gain of 137,000. Firms
with 50-249 employees had a net employment gain of 154,000. Firms with 250 or more employees had a
net employment gain of 167,000. (See tables 4 and 5.)
States
Gross job gains exceeded gross job losses in 39 states and the District of Columbia in the second quarter
of 2018. Among the states, Alaska had the highest rate of gross job gains as a percent of employment at
10.9 percent, above the U.S. rate of 6.1 percent. Arkansas 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 10.7 percent, above the national rate of 5.8 percent. Connecticut 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 Third Quarter 2018 are scheduled to be released on
Wednesday, April 24, 2019 at 10:00 a.m. (EDT)
