From June 2020 to September 2020, gross job gains from opening and expanding private-sector establishments in Pennsylvania were 484,981, while gross job losses from closing and contracting private-sector establishments were 236,671, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Alexandra Hall Bovee noted that the difference between the number of gross job gains and the number of gross job losses yielded a net employment gain of 248,310 jobs in the private sector during the third quarter of 2020. During the previous quarter, gross job losses exceeded gross job gains by 719,604. (See chart 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.)

Gross job gains

In the third quarter of 2020, gross job gains represented 10.3 percent of private-sector employment in Pennsylvania; nationally, gross job gains accounted for 9.4 percent of private-sector employment. (See chart 2.) 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. In Pennsylvania, gross job gains at expanding establishments totaled 386,662 in the third quarter of 2020, an increase of 243,458 jobs compared to the previous quarter. Opening establishments accounted for 98,319 jobs gained in the third quarter of 2020, a decrease of 209 jobs from the previous quarter. (See table 1.)

Gross job losses

In the third quarter of 2020, gross job losses represented 5.0 percent of private-sector employment in Pennsylvania; nationally, gross job losses accounted for 6.0 percent of private-sector employment. (See chart 3.) Gross job losses are the result of contractions in employment at existing establishments and the loss of jobs at closing establishments. In Pennsylvania, contracting establishments lost 198,231 jobs in the third quarter of 2020, a decrease of 560,938 jobs from the prior quarter. Closing establishments lost 38,440 jobs, a decrease of 99,100 jobs from the previous quarter.

Industries

Gross job gains exceeded gross job losses in all 11 industry sectors in Pennsylvania in the third quarter of 2020. Leisure and hospitality had the largest over-the-quarter net job increase, with a gain of 114,101 jobs. This was the result of 141,840 gross job gains and 27,739 gross job losses. The retail trade industry had a net gain of 36,800 jobs and other services showed a net gain of 32,642 jobs. The education and health services industry sector had a net gain of 24,240 jobs.

For more information

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. BED data for the states have been included in table 2 of this release. Additional information is available online at www.bls.gov/bdm/.

The Business Employment Dynamics for Fourth Quarter 2020 are scheduled to be released on Wednesday, July 28, 2021.

Technical Note

The Business Employment Dynamics (BED) data are a product of a federal-state cooperative program known as Quarterly Census of Employment and Wages (QCEW). The BED data are compiled by the U.S. Bureau of Labor Statistics (BLS) from existing QCEW records. Most employers in the U.S. are required to file quarterly reports on the employment and wages of workers covered by unemployment insurance (UI) laws, and to pay quarterly UI taxes. The QCEW is based largely on quarterly UI reports which are sent by businesses to the State Workforce Agencies (SWAs). These UI reports are supplemented by two additional BLS data collections to render administrative data into economic statistics. Together these data comprise the QCEW and form the basis of the Bureau’s establishment universe sampling frame.

In the BED program, the QCEW records are linked across quarters to provide a longitudinal history for each establishment. The linkage process allows the tracking of net employment changes at the establishment level, which in turn allows the estimation of jobs gained at opening and expanding units and jobs lost at closing and contracting units.

The change in the number of jobs over time is the net result of increases and decreases in employment that occur at all businesses in the economy. BED statistics track these changes in employment at private business establishments from the third month of one quarter to the third month of the next. Gross job gains are the sum of increases in employment from expansions at existing establishments and the addition of new jobs at opening establishments. Gross job losses are the result of contractions in employment at existing establishments and the loss of jobs at closing establishments. The difference between the number of gross jobs gained and the number of gross jobs lost is the net change in employment.

Gross job gains and gross job losses are expressed as rates by dividing their levels by the average of employment in the current and previous quarters. The rates are calculated for the components of gross job gains and gross job losses and then summed to form their respective totals. These rates can be added and subtracted just as their levels can. For instance, the difference between the gross job gains rate and the gross job losses rate is the net growth rate.

The formal definitions of employment changes are as follows:

Openings. These are either units with positive third month employment for the first time in the current quarter, with no links to the prior quarter, or with positive third month employment in the current quarter following zero employment in the previous quarter.

Expansions. These are units with positive employment in the third month in both the previous and current quarters, with a net increase in employment over this period.

Closings. These are either units with positive third month employment in the previous quarter, with no employment or zero employment reported in the current quarter.

Contractions. These are units with positive employment in the third month in both the previous and current quarters, with a net decrease in employment over this period.

The full Technical Note for the Business Employment Dynamics program, which includes information on coverage, concepts, and methodology, can be found in the current quarterly news release online at www.bls.gov/news.release/cewbd.htm.

Information in this release will be made available to individuals with sensory impairments upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339.

Table 1. Private-sector gross job gains and losses by industry, Pennsylvania, seasonally adjusted

Category	Gross job gains and job losses (3 months ended)					Gross job gains and job losses as a percent of employment (3 months ended)
	Sept 2019	Dec. 2019	Mar. 2020	June 2020	Sept 2020	Sept 2019	Dec. 2019	Mar. 2020	June 2020	Sept 2020
Total private (1)
Gross job gains	275,857	283,898	261,356	177,105	484,981	5.2	5.4	4.9	3.6	10.3
At expanding establishments	232,491	241,284	227,246	143,204	386,662	4.4	4.6	4.3	2.9	8.2
At opening establishments	43,366	42,614	34,110	33,901	98,319	0.8	0.8	0.6	0.7	2.1
Gross job losses	272,037	255,290	296,782	896,709	236,671	5.1	4.9	5.6	18.2	5.0
At contracting establishments	233,189	215,429	244,119	759,169	198,231	4.4	4.1	4.6	15.4	4.2
At closing establishments	38,848	39,861	52,663	137,540	38,440	0.7	0.8	1.0	2.8	0.8
Net employment change (2)	3,820	28,608	-35,426	-719,604	248,310	0.1	0.5	-0.7	-14.6	5.3
Construction
Gross job gains	22,543	21,324	23,482	17,265	27,459	8.7	8.2	8.9	6.8	11.5
At expanding establishments	18,659	17,411	19,617	14,008	21,472	7.2	6.7	7.4	5.5	9.0
At opening establishments	3,884	3,913	3,865	3,257	5,987	1.5	1.5	1.5	1.3	2.5
Gross job losses	22,508	23,854	20,507	47,632	20,382	8.7	9.1	7.7	18.8	8.5
At contracting establishments	18,268	20,121	16,983	40,238	16,822	7.1	7.7	6.4	15.9	7.0
At closing establishments	4,240	3,733	3,524	7,394	3,560	1.6	1.4	1.3	2.9	1.5
Net employment change (2)	35	-2,530	2,975	-30,367	7,077	0.0	-0.9	1.2	-12.0	3.0
Manufacturing
Gross job gains	13,269	16,220	15,329	9,209	24,258	2.3	2.9	2.7	1.6	4.5
At expanding establishments	12,225	15,185	14,702	8,472	22,529	2.1	2.7	2.6	1.5	4.2
At opening establishments	1,044	1,035	627	737	1,729	0.2	0.2	0.1	0.1	0.3
Gross job losses	18,464	16,329	16,492	52,172	19,866	3.2	2.9	2.9	9.5	3.7
At contracting establishments	17,236	15,172	14,826	49,469	18,293	3.0	2.7	2.6	9.0	3.4
At closing establishments	1,228	1,157	1,666	2,703	1,573	0.2	0.2	0.3	0.5	0.3
Net employment change (2)	-5,195	-109	-1,163	-42,963	4,392	-0.9	0.0	-0.2	-7.9	0.8
Wholesale trade
Gross job gains	8,116	7,947	7,979	5,618	11,603	3.8	3.7	3.7	2.8	5.8
At expanding establishments	6,692	6,637	6,821	4,261	9,762	3.1	3.1	3.2	2.1	4.9
At opening establishments	1,424	1,310	1,158	1,357	1,841	0.7	0.6	0.5	0.7	0.9
Gross job losses	8,190	8,491	7,999	23,608	8,041	3.7	3.9	3.7	11.4	4.0
At contracting establishments	6,788	6,766	6,164	21,137	6,497	3.1	3.1	2.9	10.2	3.2
At closing establishments	1,402	1,725	1,835	2,471	1,544	0.6	0.8	0.8	1.2	0.8
Net employment change (2)	-74	-544	-20	-17,990	3,562	0.1	-0.2	0.0	-8.6	1.8
Retail trade
Gross job gains	31,320	32,113	35,500	30,434	65,992	5.2	5.2	5.8	5.3	11.7
At expanding establishments	27,215	28,177	32,402	27,696	56,592	4.5	4.6	5.3	4.8	10.0
At opening establishments	4,105	3,936	3,098	2,738	9,400	0.7	0.6	0.5	0.5	1.7
Gross job losses	35,543	31,631	33,659	107,901	29,192	5.9	5.2	5.5	18.6	5.2
At contracting establishments	32,136	28,418	29,152	93,945	26,223	5.3	4.7	4.8	16.2	4.7
At closing establishments	3,407	3,213	4,507	13,956	2,969	0.6	0.5	0.7	2.4	0.5
Net employment change (2)	-4,223	482	1,841	-77,467	36,800	-0.7	0.0	0.3	-13.3	6.5
Transportation and warehousing
Gross job gains	17,691	22,341	16,029	16,029	24,391	6.6	8.0	5.7	6.0	9.4
At expanding establishments	14,950	20,642	14,631	14,596	19,967	5.6	7.4	5.2	5.5	7.7
At opening establishments	2,741	1,699	1,398	1,433	4,424	1.0	0.6	0.5	0.5	1.7
Gross job losses	10,787	10,448	19,973	38,661	16,195	4.0	3.8	7.2	14.6	6.3
At contracting establishments	9,464	9,135	18,026	35,710	14,960	3.5	3.3	6.5	13.5	5.8
At closing establishments	1,323	1,313	1,947	2,951	1,235	0.5	0.5	0.7	1.1	0.5
Net employment change (2)	6,904	11,893	-3,944	-22,632	8,196	2.6	4.2	-1.5	-8.6	3.1
Information
Gross job gains	3,639	4,532	3,954	2,316	6,298	4.1	5.2	4.5	2.8	7.8
At expanding establishments	3,164	3,662	3,396	1,770	5,163	3.6	4.2	3.9	2.1	6.4
At opening establishments	475	870	558	546	1,135	0.5	1.0	0.6	0.7	1.4
Gross job losses	3,871	4,106	4,591	12,592	3,541	4.5	4.7	5.2	15.1	4.4
At contracting establishments	3,209	3,316	3,961	10,424	2,798	3.7	3.8	4.5	12.5	3.5
At closing establishments	662	790	630	2,168	743	0.8	0.9	0.7	2.6	0.9
Net employment change (2)	-232	426	-637	-10,276	2,757	-0.4	0.5	-0.7	-12.3	3.4
Financial activities
Gross job gains	11,400	11,852	11,049	8,902	13,887	3.4	3.5	3.4	2.7	4.3
At expanding establishments	9,357	9,403	9,536	7,035	11,202	2.8	2.8	2.9	2.1	3.5
At opening establishments	2,043	2,449	1,513	1,867	2,685	0.6	0.7	0.5	0.6	0.8
Gross job losses	11,889	10,953	10,733	21,714	11,265	3.6	3.3	3.2	6.6	3.4
At contracting establishments	9,967	9,039	8,489	18,781	9,172	3.0	2.7	2.5	5.7	2.8
At closing establishments	1,922	1,914	2,244	2,933	2,093	0.6	0.6	0.7	0.9	0.6
Net employment change (2)	-489	899	316	-12,812	2,622	-0.2	0.2	0.2	-3.9	0.9
Professional and business services
Gross job gains	52,016	51,691	42,276	34,393	58,870	6.4	6.3	5.2	4.5	7.9
At expanding establishments	42,935	42,489	35,158	26,268	47,800	5.3	5.2	4.3	3.4	6.4
At opening establishments	9,081	9,202	7,118	8,125	11,070	1.1	1.1	0.9	1.1	1.5
Gross job losses	45,045	48,462	50,630	113,196	46,385	5.5	5.9	6.3	14.7	6.2
At contracting establishments	37,734	38,998	40,208	100,412	37,354	4.6	4.7	5.0	13.0	5.0
At closing establishments	7,311	9,464	10,422	12,784	9,031	0.9	1.2	1.3	1.7	1.2
Net employment change (2)	6,971	3,229	-8,354	-78,803	12,485	0.9	0.4	-1.1	-10.2	1.7
Education and health services
Gross job gains	44,759	43,224	42,586	22,964	62,480	3.7	3.5	3.4	1.9	5.4
At expanding establishments	38,993	38,385	38,967	18,257	52,271	3.2	3.1	3.1	1.5	4.5
At opening establishments	5,766	4,839	3,619	4,707	10,209	0.5	0.4	0.3	0.4	0.9
Gross job losses	40,189	36,247	42,994	114,881	38,240	3.2	2.9	3.4	9.6	3.3
At contracting establishments	34,751	30,680	34,976	101,445	33,211	2.8	2.5	2.8	8.5	2.9
At closing establishments	5,438	5,567	8,018	13,436	5,029	0.4	0.4	0.6	1.1	0.4
Net employment change (2)	4,570	6,977	-408	-91,917	24,240	0.5	0.6	0.0	-7.7	2.1
Leisure and hospitality
Gross job gains	53,890	56,220	47,619	19,609	141,840	9.3	9.7	8.2	4.3	36.8
At expanding establishments	44,434	45,939	38,868	13,120	113,549	7.7	7.9	6.7	2.9	29.5
At opening establishments	9,456	10,281	8,751	6,489	28,291	1.6	1.8	1.5	1.4	7.3
Gross job losses	57,619	47,938	69,607	285,916	27,739	10.1	8.2	12.0	62.6	7.2
At contracting establishments	48,596	39,548	56,092	236,478	20,730	8.5	6.8	9.7	51.8	5.4
At closing establishments	9,023	8,390	13,515	49,438	7,009	1.6	1.4	2.3	10.8	1.8
Net employment change (2)	-3,729	8,282	-21,988	-266,307	114,101	-0.8	1.5	-3.8	-58.3	29.6
Other services (3)
Gross job gains	12,619	12,344	11,601	6,860	43,324	6.4	6.2	5.9	4.0	27.8
At expanding establishments	10,124	9,936	9,638	4,796	22,411	5.1	5.0	4.9	2.8	14.4
At opening establishments	2,495	2,408	1,963	2,064	20,913	1.3	1.2	1.0	1.2	13.4
Gross job losses	12,685	11,271	14,757	69,800	10,682	6.4	5.7	7.5	41.2	6.8
At contracting establishments	10,348	9,476	11,052	43,021	7,855	5.2	4.8	5.6	25.4	5.0
At closing establishments	2,337	1,795	3,705	26,779	2,827	1.2	0.9	1.9	15.8	1.8
Net employment change (2)	-66	1,073	-3,156	-62,940	32,642	0.0	0.5	-1.6	-37.2	21.0
Footnotes: (1) Includes unclassified sector not shown separately. (2) The net employment change is the difference between total gross job gains and total gross job losses. See the Technical Note for further information. (3) Except public administration.