From June 2020 to September 2020, gross job gains from opening and expanding private-sector establishments in Virginia were 303,716, while gross job losses from closing and contracting private-sector establishments were 157,202, 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 146,514 jobs in the private sector during the third quarter of 2020. During the previous quarter, gross job losses exceeded gross job gains by 414,951. (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 10.2 percent of private-sector employment in Virginia; 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 Virginia, gross job gains at expanding establishments totaled 249,830 in the third quarter of 2020, an increase of 138,762 jobs compared to the previous quarter. Opening establishments accounted for 53,886 jobs gained in the third quarter of 2020, an increase of 20,335 jobs from the previous quarter. (See table 1.)

Gross job losses

In the third quarter of 2020, gross job losses represented 5.3 percent of private-sector employment in Virginia; 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 Virginia, contracting establishments lost 125,784 jobs in the third quarter of 2020, a decrease of 358,369 jobs from the prior quarter. Closing establishments lost 31,418 jobs, a decrease of 43,999 jobs from the previous quarter.

Industries

Gross job gains exceeded gross job losses in all 11 industry sectors in Virginia in the third quarter of 2020. The leisure and hospitality sector had the largest over-the-quarter net job increase, with a gain of 73,781 jobs. This was the result of 92,588 gross job gains and 18,807 gross job losses. The retail trade industry had a net gain of 20,308 jobs. Professional and business services showed a net gain of 13,297, and Virginia’s education and health services industry sector had a net gain of 13,092 jobs. Smaller net gains were seen in the construction sector with a net gain of 7,077 jobs and wholesale trade with a net gain of 3,562 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, Virginia, 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	177,767	211,840	181,461	144,619	303,716	5.5	6.5	5.6	4.7	10.2
At expanding establishments	152,452	159,053	145,815	111,068	249,830	4.7	4.9	4.5	3.6	8.4
At opening establishments	25,315	52,787	35,646	33,551	53,886	0.8	1.6	1.1	1.1	1.8
Gross job losses	200,915	177,757	196,921	559,570	157,202	6.3	5.5	6.1	18.2	5.3
At contracting establishments	159,735	143,244	159,414	484,153	125,784	5.0	4.4	4.9	15.7	4.2
At closing establishments	41,180	34,513	37,507	75,417	31,418	1.3	1.1	1.2	2.5	1.1
Net employment change (2)	-23,148	34,083	-15,460	-414,951	146,514	-0.8	1.0	-0.5	-13.5	4.9
Construction
Gross job gains	13,721	15,788	16,098	11,633	15,765	6.8	7.8	7.9	5.8	8.0
At expanding establishments	11,959	12,070	13,510	9,439	12,478	5.9	6.0	6.6	4.7	6.3
At opening establishments	1,762	3,718	2,588	2,194	3,287	0.9	1.8	1.3	1.1	1.7
Gross job losses	14,749	13,905	13,571	20,337	14,567	7.4	6.8	6.6	10.1	7.3
At contracting establishments	11,583	11,406	11,177	16,900	12,136	5.8	5.6	5.4	8.4	6.1
At closing establishments	3,166	2,499	2,394	3,437	2,431	1.6	1.2	1.2	1.7	1.2
Net employment change (2)	-1,028	1,883	2,527	-8,704	1,198	-0.6	1.0	1.3	-4.3	0.7
Manufacturing
Gross job gains	5,483	7,923	6,666	4,553	12,178	2.3	3.2	2.7	1.9	5.3
At expanding establishments	5,055	6,362	6,064	4,066	10,709	2.1	2.6	2.5	1.7	4.7
At opening establishments	428	1,561	602	487	1,469	0.2	0.6	0.2	0.2	0.6
Gross job losses	8,763	6,915	6,639	20,612	6,914	3.6	2.9	2.8	8.9	3.0
At contracting establishments	6,856	6,230	5,988	19,081	6,222	2.8	2.6	2.5	8.2	2.7
At closing establishments	1,907	685	651	1,531	692	0.8	0.3	0.3	0.7	0.3
Net employment change (2)	-3,280	1,008	27	-16,059	5,264	-1.3	0.3	-0.1	-7.0	2.3
Wholesale trade
Gross job gains	4,421	4,723	4,662	3,334	4,889	4.1	4.3	4.3	3.1	4.7
At expanding establishments	3,909	3,719	3,828	2,656	4,235	3.6	3.4	3.5	2.5	4.1
At opening establishments	512	1,004	834	678	654	0.5	0.9	0.8	0.6	0.6
Gross job losses	4,974	4,384	4,388	9,835	4,375	4.5	4.0	4.0	9.2	4.2
At contracting establishments	3,862	3,551	3,379	8,659	3,524	3.5	3.2	3.1	8.1	3.4
At closing establishments	1,112	833	1,009	1,176	851	1.0	0.8	0.9	1.1	0.8
Net employment change (2)	-553	339	274	-6,501	514	-0.4	0.3	0.3	-6.1	0.5
Retail trade
Gross job gains	21,165	23,010	25,401	23,540	39,535	5.3	5.8	6.3	6.0	10.4
At expanding establishments	19,323	19,905	22,741	21,446	35,895	4.8	5.0	5.6	5.5	9.4
At opening establishments	1,842	3,105	2,660	2,094	3,640	0.5	0.8	0.7	0.5	1.0
Gross job losses	26,151	24,655	22,733	66,549	19,227	6.4	6.1	5.6	17.1	5.0
At contracting establishments	22,797	21,727	19,773	60,496	16,895	5.6	5.4	4.9	15.5	4.4
At closing establishments	3,354	2,928	2,960	6,053	2,332	0.8	0.7	0.7	1.6	0.6
Net employment change (2)	-4,986	-1,645	2,668	-43,009	20,308	-1.1	-0.3	0.7	-11.1	5.4
Transportation and warehousing
Gross job gains	8,398	10,281	5,644	10,402	11,813	6.8	8.1	4.3	8.2	9.3
At expanding establishments	7,090	7,865	4,935	9,459	10,810	5.7	6.2	3.8	7.5	8.5
At opening establishments	1,308	2,416	709	943	1,003	1.1	1.9	0.5	0.7	0.8
Gross job losses	6,718	5,879	7,862	17,841	6,370	5.4	4.6	6.1	14.2	5.1
At contracting establishments	5,421	5,066	6,963	16,489	5,646	4.4	4.0	5.4	13.1	4.5
At closing establishments	1,297	813	899	1,352	724	1.0	0.6	0.7	1.1	0.6
Net employment change (2)	1,680	4,402	-2,218	-7,439	5,443	1.4	3.5	-1.8	-6.0	4.2
Information
Gross job gains	3,210	3,705	3,193	2,374	4,489	4.7	5.5	4.7	3.6	7.1
At expanding establishments	2,660	2,918	2,658	1,847	3,362	3.9	4.3	3.9	2.8	5.3
At opening establishments	550	787	535	527	1,127	0.8	1.2	0.8	0.8	1.8
Gross job losses	3,723	3,023	3,156	7,480	2,790	5.5	4.5	4.6	11.5	4.3
At contracting establishments	2,916	2,554	2,653	5,935	2,122	4.3	3.8	3.9	9.1	3.3
At closing establishments	807	469	503	1,545	668	1.2	0.7	0.7	2.4	1.0
Net employment change (2)	-513	682	37	-5,106	1,699	-0.8	1.0	0.1	-7.9	2.8
Financial activities
Gross job gains	8,134	10,533	8,214	6,448	9,391	4.1	5.3	4.1	3.3	4.8
At expanding establishments	6,849	7,690	6,376	4,678	7,393	3.5	3.9	3.2	2.4	3.8
At opening establishments	1,285	2,843	1,838	1,770	1,998	0.6	1.4	0.9	0.9	1.0
Gross job losses	9,259	8,390	9,063	14,663	7,947	4.7	4.3	4.5	7.4	4.1
At contracting establishments	6,730	6,495	7,284	11,478	5,849	3.4	3.3	3.6	5.8	3.0
At closing establishments	2,529	1,895	1,779	3,185	2,098	1.3	1.0	0.9	1.6	1.1
Net employment change (2)	-1,125	2,143	-849	-8,215	1,444	-0.6	1.0	-0.4	-4.1	0.7
Professional and business services
Gross job gains	45,403	50,833	43,104	39,562	56,004	5.9	6.7	5.7	5.3	7.6
At expanding establishments	39,245	40,189	35,731	30,739	45,002	5.1	5.3	4.7	4.1	6.1
At opening establishments	6,158	10,644	7,373	8,823	11,002	0.8	1.4	1.0	1.2	1.5
Gross job losses	49,467	44,900	43,691	75,837	42,707	6.5	5.9	5.7	10.1	5.8
At contracting establishments	39,082	35,717	35,258	65,420	34,703	5.1	4.7	4.6	8.7	4.7
At closing establishments	10,385	9,183	8,433	10,417	8,004	1.4	1.2	1.1	1.4	1.1
Net employment change (2)	-4,064	5,933	-587	-36,275	13,297	-0.6	0.8	0.0	-4.8	1.8
Education and health services
Gross job gains	24,964	26,369	25,204	16,937	34,817	4.9	5.0	4.8	3.4	7.2
At expanding establishments	20,508	18,404	19,948	11,346	28,135	4.0	3.5	3.8	2.3	5.8
At opening establishments	4,456	7,965	5,256	5,591	6,682	0.9	1.5	1.0	1.1	1.4
Gross job losses	24,323	25,378	27,342	61,908	21,725	4.7	4.8	5.2	12.4	4.5
At contracting establishments	18,347	18,430	20,413	52,975	16,330	3.5	3.5	3.9	10.6	3.4
At closing establishments	5,976	6,948	6,929	8,933	5,395	1.2	1.3	1.3	1.8	1.1
Net employment change (2)	641	991	-2,138	-44,971	13,092	0.2	0.2	-0.4	-9.0	2.7
Leisure and hospitality
Gross job gains	30,585	40,365	27,461	12,984	92,588	7.6	9.9	6.7	3.8	31.5
At expanding establishments	26,897	30,140	20,452	8,601	78,558	6.7	7.4	5.0	2.5	26.7
At opening establishments	3,688	10,225	7,009	4,383	14,030	0.9	2.5	1.7	1.3	4.8
Gross job losses	38,215	27,836	44,048	230,464	18,807	9.5	6.8	10.7	68.0	6.4
At contracting establishments	31,818	23,339	36,582	202,182	13,893	7.9	5.7	8.9	59.7	4.7
At closing establishments	6,397	4,497	7,466	28,282	4,914	1.6	1.1	1.8	8.3	1.7
Net employment change (2)	-7,630	12,529	-16,587	-217,480	73,781	-1.9	3.1	-4.0	-64.2	25.1
Other services (3)
Gross job gains	7,520	8,855	7,738	5,363	14,021	5.8	6.9	6.0	4.7	13.0
At expanding establishments	6,401	6,281	5,808	3,454	9,598	4.9	4.9	4.5	3.0	8.9
At opening establishments	1,119	2,574	1,930	1,909	4,423	0.9	2.0	1.5	1.7	4.1
Gross job losses	9,222	8,037	8,749	26,501	6,642	7.1	6.2	6.8	23.3	6.2
At contracting establishments	7,085	6,263	6,447	19,695	4,855	5.5	4.8	5.0	17.3	4.5
At closing establishments	2,137	1,774	2,302	6,806	1,787	1.6	1.4	1.8	6.0	1.7
Net employment change (2)	-1,702	818	-1,011	-21,138	7,379	-1.3	0.7	-0.8	-18.6	6.8
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.