Business Employment Dynamics Summary

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

---------------------------------------------------------------------------------------------
                                          |                  3 months ended                 
                 Category                 |    June |   Sept. |    Dec. |    Mar. |    June
                                          |    2017 |    2017 |    2017 |    2018 |    2018
---------------------------------------------------------------------------------------------
                                          |              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
---------------------------------------------------------------------------------------------
(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. 

_____________
The Business Employment Dynamics for Third Quarter 2018 are scheduled to be released on 
Wednesday, April 24, 2019 at 10:00 a.m. (EDT)





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Last Modified Date: January 30, 2019