Business Employment Dynamics Summary

For release 10:00 a.m. (EST), Friday, January 26, 2018                                  USDL-18-0114

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 2017

From March 2017 to June 2017, gross job gains from opening and expanding private-sector 
establishments were 7.6 million, an increase of 276,000 jobs gained 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 7.1 million, an increase of 454,000 jobs lost 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 476,000 jobs in the private sector during the second 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 second quarter of 2017, gross job gains represented 6.2 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 2017, an increase of 227,000 compared to the previous quarter. 
Opening establishments accounted for 1.4 million of the jobs gained in the second quarter of 2017, an 
increase of 49,000 jobs from the previous quarter. (See tables A, 1, 2, and 3.)

Gross Job Losses

In the second quarter of 2017, 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 
2017, an increase of 358,000 jobs from the prior quarter. In the second quarter of 2017, closing 
establishments lost 1.2 million jobs, an increase of 96,000 jobs from the previous quarter. (See tables A, 
1, 2, and 3.)

Establishment Births and Deaths

In the second quarter of 2017, the number of establishment births (a subset of the openings data, see the 
Technical Note for more information) decreased by 1,000, to a total of 239,000 establishments. These 
new establishments accounted for 846,000 jobs, an increase of 46,000 jobs from the previous quarter. 
Data for establishment deaths (a subset of the closings data) are available through the third quarter of 
2016, when 749,000 jobs were lost at 215,000 establishments, an increase of 25,000 jobs from the 
second quarter of 2016. (See Technical Note and table 8.)

Industries

Gross job gains exceeded gross job losses in 10 of 13 industries in the second quarter of 2017. The 
service-providing industries experienced a net job increase of 359,000 jobs in the second quarter of 
2017. Within service-providing industries, professional and business services had the largest over-the-
quarter net job increase, with a gain of 106,000 jobs. The net job increase in professional and business 
services was the result of 1.4 million gross job gains and 1.3 million gross job losses. The information 
industry had the largest net job decrease over the quarter, with a loss of 34,000 jobs. The goods-
producing industries experienced a net job increase of 117,000 jobs in the second quarter of 2017. Of the 
goods-producing industries, manufacturing added 59,000 jobs, construction added 46,000 jobs, and 
natural resources and mining added 12,000 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
                                          |    2016 |    2016 |    2016 |    2017 |    2017
---------------------------------------------------------------------------------------------
                                          |              Levels (in thousands)              
                                          |--------------------------------------------------
 Gross job gains......................... |   7,453 |   7,689 |   7,455 |   7,328 |   7,604
        At expanding establishments...... |   6,083 |   6,232 |   6,040 |   6,019 |   6,246
        At opening establishments........ |   1,370 |   1,457 |   1,415 |   1,309 |   1,358
                                          |         |         |         |         |        
 Gross job losses........................ |   7,157 |   7,008 |   7,065 |   6,674 |   7,128
        At contracting establishments.... |   5,847 |   5,760 |   5,760 |   5,521 |   5,879
        At closing establishments........ |   1,310 |   1,248 |   1,305 |   1,153 |   1,249
                                          |         |         |         |         |        
 Net employment change (1)............... |     296 |     681 |     390 |     654 |     476
                                          |         |         |         |         |        
                                          |--------------------------------------------------
                                          |                 Rates (percent)                 
                                          |--------------------------------------------------
 Gross job gains......................... |     6.2 |     6.4 |     6.2 |     6.0 |     6.2
        At expanding establishments...... |     5.1 |     5.2 |     5.0 |     4.9 |     5.1
        At opening establishments........ |     1.1 |     1.2 |     1.2 |     1.1 |     1.1
                                          |         |         |         |         |        
 Gross job losses........................ |     6.0 |     5.8 |     5.9 |     5.4 |     5.8
        At contracting establishments.... |     4.9 |     4.8 |     4.8 |     4.5 |     4.8
        At closing establishments........ |     1.1 |     1.0 |     1.1 |     0.9 |     1.0
                                          |         |         |         |         |        
 Net employment change (1)............... |     0.2 |     0.6 |     0.3 |     0.6 |     0.4
---------------------------------------------------------------------------------------------
(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 2017, firms with 1-49 employees had a net employment gain of 143,000. Firms 
with 50-249 employees had a net employment gain of 153,000. Firms with 250 or more employees had a 
net employment gain of 215,000. Of the 2.2 million net jobs created over the last four quarters, firms 
with 1-49 employees contributed 34.1 percent of net job growth, while firms with 50-249 employees 
contributed 22.0 percent, and firms with 250 or more employees contributed 43.8 percent. (See tables 4 
and 5.)

States
	
Gross job gains exceeded gross job losses in 36 states, the District of Columbia, and the Virgin Islands, 
in the second quarter of 2017. Alaska had the highest rate of gross job gains as a percent of employment 
at 11.0 percent, above the national rate of 6.2 percent. Arkansas, Hawaii, and Puerto Rico had the lowest 
rate of gross job gains as a percent of employment at 5.2 percent. Alaska had the highest rate of gross 
job losses as a percent of employment at 9.9 percent, above the national rate of 5.8 percent. The Virgin 
Islands 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 Third Quarter 2017 are scheduled to be released on 
Wednesday, April 25, 2018 at 10:00 a.m. (EDT).





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Last Modified Date: January 26, 2018