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News Release Information

16-2150-CHI
Tuesday, December 06, 2016

Contacts

Technical information:
Media contact:
  • (312) 353-1138

Business Employment Dynamics in Minnesota — First Quarter 2016

From December 2015 to March 2016 gross job gains in Minnesota totaled 131,059, while gross job losses numbered 126,838, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that gross job gains exceeded gross job losses by 4,221. During the previous quarter, gross job gains exceeded gross job losses by 7,807.

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. Business Employment Dynamics (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 job gains and the number of gross job losses is the net change in employment. (See the Technical Note for more information.)

The 131,059 gross job gains in March 2016 were below the 145,443 gross job gains in the three-month period ended December 2015. During the past 5 years, gross job gains in Minnesota peaked at 151,773 in June 2014 and reached a low of 122,896 in March 2014. (See chart 1.) Minnesota’s 126,838 gross job losses in March 2016 were less than the 137,636 gross job losses recorded in December 2015. Over the past 5 years, gross job losses reached a high of 137,770 in September 2015 and a low of 116,059 in March 2011. (See chart 1.)

Gross job gains represented 5.4 percent of private sector employment in Minnesota in the quarter ended March 2016, while nationally gross job gains accounted for 5.8 percent of private sector employment. (See chart 2.) Minnesota’s rate of gross job losses represented 5.2 percent of private sector employment in March 2016, compared to the U.S. rate of 5.7 percent. With few exceptions, the rate of gross job losses in Minnesota has been low the national rate since March 2011.  

During the first quarter of 2016, gross job gains exceeded gross job losses in six industry sectors in Minnesota. For example, within leisure and hospitality, gross job gains exceeded gross jobs losses by 4,124. While more than 22,000 jobs were lost in closing and contracting establishments in the industry, nearly 27,000 jobs were created by opening and expanding establishments in the three-months ended in March 2016. In the education and health services industry, nearly 18,000 jobs were created in opening and expanding establishments and more than 14,000 jobs were lost in closing and contracting establishments. This resulted in a net employment gain of 3,529 jobs in the education and health services industry. (See table 1.)

In contrast, gross job losses exceeded gross job gains in five industry sectors. Within professional and business services, gross job losses exceeded gross job gains by 4,330. In each of the four other sectors— transportation and warehousing, manufacturing, construction, and wholesale trade—gross job losses exceeded gross job gains by less than 1,000.

Minnesota was among the seven states in the West North Central Census division. Five states in the division, including Minnesota, had gross job gains that exceeded gross job losses. (See table A.) Three states (North Dakota, South Dakota, and Iowa) had rates of gross job gains that were higher than the national rate. Missouri and Minnesota had rates of gross job gains that were lower than the 5.8-percent national rate. Four states, including Minnesota, had rates of gross job losses that were below the 5.7-percent national rate. Three states (North Dakota, South Dakota, and Kansas) had rates of gross job losses that were higher than the national rate.

 

Table A. Private sector gross job gains and losses for the United States, West North Central Division, and West North Central states, March 2016, seasonally adjusted
AreaGross job gainsGross job lossesNet changeNet change as
a percent of
total
employment
TotalAs a
percent of
total
employment
TotalAs a
percent of
total
employment

United States

6,977,0005.86,783,0005.7194,0000.1

West North Central (1)

497,061483,94213,119

Iowa

77,7956.069,1405.38,6550.7

Kansas

64,9805.866,8965.9-1,916-0.1

Minnesota

131,0595.4126,8385.24,2210.2

Missouri

131,1775.7124,2225.36,9550.4

Nebraska

47,0505.844,3795.52,6710.3

North Dakota

23,5016.631,2798.9-7,778-2.3

South Dakota

21,4996.221,1886.13110.1

Footnotes:
(1) Data were calculated for this release using published gross job gains and gross job losses for states located in the West North Central Census Division.
 

Note: Dash indicates data not available.
 

Additional statistics and other information

BED data for the states have been included in table 2 of this release. For more information on the Business Employment Dynamics data, visit the BED web site at www.bls.gov/bdm/.

The Business Employment Dynamics release for second quarter 2016 is scheduled to be released on Wednesday, January 25, 2017.

Revisions to Business Employment Dynamics (BED) Data

Data in this release incorporate annual revisions to the BED series. Annual revisions are published each year with the release of first quarter data. These revisions cover the last four quarters of not seasonally adjusted data and five years of seasonally adjusted data.


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), or the ES-202 program. The BED data are compiled from existing QCEW records. The QCEW reports are sent by the State Employment Security Agencies (SESAs) to BLS and form the basis of the Bureau’s QCEW program and establishment universe sampling frame. These reports are also used to produce the QCEW data on total employment and wages. Other important Bureau uses of the QCEW reports are in the Current Employment Statistics (CES) program. The CES program produces monthly estimates of employment, net changes, and earnings by detailed industry.

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 establishments and jobs lost at closing and contracting establishments.

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 establishments 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 establishments 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 establishments with positive third month employment in the previous quarter, with no employment or zero employment reported in the current quarter.

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

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

Table 1. Private sector gross job gains and losses by industry, Minnesota, seasonally adjusted
CategoryGross job gains and job losses
(3 months ended)
Gross job gains and job losses
as a percent of employment
(3 months ended)
Mar.
2015
June
2015
Sept.
2015
Dec.
2015
Mar.
2016
Mar.
2015
June
2015
Sept.
2015
Dec.
2015
Mar.
2016

Total private (1)

 

Gross job gains

132,740147,841130,507145,443131,0595.66.15.46.15.4

At expanding establishments

111,612120,557107,766119,587111,3454.75.04.55.04.6

At opening establishments

21,12827,28422,74125,85619,7140.91.10.91.10.8

Gross job losses

122,682122,188137,770137,636126,8385.15.15.85.75.2

At contracting establishments

103,535102,256116,835110,754104,2044.34.34.94.64.3

At closing establishments

19,14719,93220,93526,88222,6340.80.80.91.10.9

Net employment change (2)

10,05825,653-7,2637,8074,2210.51.0-0.40.40.2

Construction

 

Gross job gains

15,62115,88412,43113,79014,22813.913.810.812.012.2

At expanding establishments

12,45612,50810,38711,24011,67211.110.99.09.810.0

At opening establishments

3,1653,3762,0442,5502,5562.82.91.82.22.2

Gross job losses

12,51311,44514,43314,33614,56911.110.012.612.412.5

At contracting establishments

10,1419,29711,91211,31412,1159.08.110.49.810.4

At closing establishments

2,3722,1482,5213,0222,4542.11.92.22.62.1

Net employment change (2)

3,1084,439-2,002-546-3412.83.8-1.8-0.4-0.3

Manufacturing

 

Gross job gains

9,27410,7329,76310,7108,5823.03.43.13.42.7

At expanding establishments

8,7699,5538,9309,9077,8072.83.02.83.12.5

At opening establishments

5051,1798338037750.20.40.30.30.2

Gross job losses

8,8289,95610,33510,5009,0332.73.23.33.32.9

At contracting establishments

7,7369,0829,4768,8558,1842.42.93.02.82.6

At closing establishments

1,0928748591,6458490.30.30.30.50.3

Net employment change (2)

446776-572210-4510.30.2-0.20.1-0.2

Wholesale trade

 

Gross job gains

5,0715,8084,9776,0705,4073.84.33.84.54.0

At expanding establishments

4,3924,8164,2335,0804,8313.33.63.23.83.6

At opening establishments

6799927449905760.50.70.60.70.4

Gross job losses

5,0874,9945,9105,7235,4133.93.84.44.34.1

At contracting establishments

4,1944,0804,9124,2654,2363.23.13.73.23.2

At closing establishments

8939149981,4581,1770.70.70.71.10.9

Net employment change (2)

-16814-933347-6-0.10.5-0.60.2-0.1

Retail trade

 

Gross job gains

17,10821,04018,26116,52616,9805.97.16.25.65.7

At expanding establishments

15,06918,11715,35014,47315,1355.26.15.24.95.1

At opening establishments

2,0392,9232,9112,0531,8450.71.01.00.70.6

Gross job losses

16,18514,98820,26417,88614,9005.55.16.86.05.0

At contracting establishments

14,32412,66818,72115,40412,7814.94.36.35.24.3

At closing establishments

1,8612,3201,5432,4822,1190.60.80.50.80.7

Net employment change (2)

9236,052-2,003-1,3602,0800.42.0-0.6-0.40.7

Transportation and warehousing

 

Gross job gains

4,1495,0365,1336,2603,9815.26.36.37.64.8

At expanding establishments

3,5684,1784,4625,5103,5104.55.25.56.74.2

At opening establishments

5818586717504710.71.10.80.90.6

Gross job losses

5,0584,0904,4284,6054,8856.35.25.55.65.9

At contracting establishments

4,4123,6473,9253,8744,2205.54.64.94.75.1

At closing establishments

6464435037316650.80.60.60.90.8

Net employment change (2)

-9099467051,655-904-1.11.10.82.0-1.1

Information

 

Gross job gains

1,9372,2422,5802,1551,9813.74.34.94.23.9

At expanding establishments

1,5491,7202,2961,6871,6163.03.34.43.33.2

At opening establishments

3885222844683650.71.00.50.90.7

Gross job losses

2,5701,9642,0343,0411,8584.93.83.95.83.7

At contracting establishments

2,0961,5721,5262,5521,4024.03.02.94.92.8

At closing establishments

4743925084894560.90.81.00.90.9

Net employment change (2)

-633278546-886123-1.20.51.0-1.60.2

Financial activities

 

Gross job gains

6,8588,0166,5726,9986,2363.94.53.63.93.5

At expanding establishments

5,7236,4545,6095,6705,3273.33.63.13.23.0

At opening establishments

1,1351,5629631,3289090.60.90.50.70.5

Gross job losses

6,0465,7516,4166,3445,4103.53.23.63.63.0

At contracting establishments

4,6834,3375,3264,6244,2762.72.43.02.62.4

At closing establishments

1,3631,4141,0901,7201,1340.80.80.61.00.6

Net employment change (2)

8122,2651566548260.41.30.00.30.5

Professional and business services

 

Gross job gains

20,08024,71919,30824,66018,9235.46.75.46.95.3

At expanding establishments

16,76219,41115,37620,21315,6004.55.34.35.74.4

At opening establishments

3,3185,3083,9324,4473,3230.91.41.11.20.9

Gross job losses

21,75021,91723,10222,14323,2535.96.06.46.26.5

At contracting establishments

18,01018,72618,68817,12218,8914.95.15.24.85.3

At closing establishments

3,7403,1914,4145,0214,3621.00.91.21.41.2

Net employment change (2)

-1,6702,802-3,7942,517-4,330-0.50.7-1.00.7-1.2

Education and health services

 

Gross job gains

17,00417,43519,38120,38117,8543.73.74.04.13.6

At expanding establishments

15,33615,63617,15216,94116,5133.33.33.53.43.3

At opening establishments

1,6681,7992,2293,4401,3410.40.40.50.70.3

Gross job losses

14,54014,82714,76417,89014,3253.13.13.13.72.9

At contracting establishments

13,15412,49812,96715,05311,8302.82.62.73.12.4

At closing establishments

1,3862,3291,7972,8372,4950.30.50.40.60.5

Net employment change (2)

2,4642,6084,6172,4913,5290.60.60.90.40.7

Leisure and hospitality

 

Gross job gains

25,11226,78222,93327,07326,9239.810.28.810.310.2

At expanding establishments

19,55020,15816,62819,90921,0257.67.76.47.68.0

At opening establishments

5,5626,6246,3057,1645,8982.22.52.42.72.2

Gross job losses

20,42421,99025,79925,41722,7998.08.59.99.78.7

At contracting establishments

16,69117,87820,94019,89217,8806.56.98.07.66.8

At closing establishments

3,7334,1124,8595,5254,9191.51.61.92.11.9

Net employment change (2)

4,6884,792-2,8661,6564,1241.81.7-1.10.61.5

Other services (3)

 

Gross job gains

6,3316,9275,5667,0766,2507.68.26.58.37.3

At expanding establishments

4,9885,4714,5175,7185,1336.06.55.36.76.0

At opening establishments

1,3431,4561,0491,3581,1171.61.71.21.61.3

Gross job losses

5,5415,8896,4916,1666,0436.66.97.67.27.1

At contracting establishments

4,4684,5085,3464,7784,5975.35.36.35.65.4

At closing establishments

1,0731,3811,1451,3881,4461.31.61.31.61.7

Net employment change (2)

7901,038-9259102071.01.3-1.11.10.2

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.
 

Table 2. Private sector gross job gains and losses as a percent of total employment by state, seasonally adjusted
CategoryGross job gains as a percent of employment
(3 months ended)
Gross job losses as a percent of employment
(3 months ended)
Mar.
2015
June
2015
Sept.
2015
Dec.
2015
Mar.
2016
Mar.
2015
June
2015
Sept.
2015
Dec.
2015
Mar.
2016

United States (1)

6.06.46.36.65.85.85.75.85.85.7

Alabama

5.75.95.86.25.85.55.35.55.35.4

Alaska

10.410.69.19.69.49.310.910.310.59.7

Arizona

6.06.06.86.96.05.75.75.45.45.7

Arkansas

5.46.06.16.35.45.85.35.35.35.3

California

7.06.96.97.66.56.26.55.96.76.3

Colorado

6.87.07.07.06.66.26.46.46.46.1

Connecticut

4.95.75.15.55.25.25.05.94.95.0

Delaware

5.87.76.17.36.57.35.86.16.26.4

District of Columbia

5.86.16.16.25.25.25.85.44.65.6

Florida

6.47.06.97.26.15.65.95.85.85.8

Georgia

6.36.76.56.96.15.85.85.95.75.6

Hawaii

5.14.95.15.84.94.74.84.64.44.9

Idaho

9.07.67.87.98.27.17.27.06.96.3

Illinois

5.86.15.46.45.35.75.25.85.65.4

Indiana

5.45.75.56.25.55.45.25.34.95.3

Iowa

6.06.05.76.06.05.56.06.05.75.3

Kansas

5.76.05.76.25.85.85.95.85.65.9

Kentucky

5.66.46.16.75.76.15.55.75.45.8

Louisiana

6.16.46.26.56.06.86.86.26.46.6

Maine

6.68.36.68.68.07.16.57.17.16.9

Maryland

6.07.16.56.86.26.25.96.25.96.0

Massachusetts

5.46.45.45.95.25.55.15.65.25.0

Michigan

5.36.15.46.15.45.25.25.65.34.9

Minnesota

5.66.15.46.15.45.15.15.85.75.2

Mississippi

5.76.56.27.15.76.45.95.95.46.1

Missouri

5.66.05.76.35.75.45.25.55.35.3

Montana

9.28.07.68.57.87.28.47.77.37.2

Nebraska

6.15.96.06.15.85.75.65.65.55.5

Nevada

6.36.26.26.86.35.35.85.65.35.7

New Hampshire

5.86.86.16.76.05.76.06.45.65.8

New Jersey

6.07.16.36.75.96.36.06.25.95.9

New Mexico

6.56.86.57.06.26.76.96.66.96.3

New York

6.06.76.36.46.15.95.86.05.75.7

North Carolina

5.96.46.36.76.05.75.55.75.55.6

North Dakota

7.16.77.16.76.68.611.28.58.18.9

Ohio

5.56.05.56.05.45.65.25.65.15.1

Oklahoma

5.76.06.16.35.76.36.66.16.56.4

Oregon

7.06.97.07.07.05.86.16.46.25.8

Pennsylvania

4.95.65.35.75.45.34.95.35.15.2

Rhode Island

5.46.75.86.65.86.05.95.85.75.9

South Carolina

5.76.56.17.16.15.65.55.85.35.8

South Dakota

6.36.35.96.76.25.75.96.15.96.1

Tennessee

5.26.05.86.35.25.34.85.14.85.1

Texas

5.86.05.96.14.75.75.65.55.55.5

Utah

7.46.97.07.27.36.06.26.06.05.9

Vermont

6.97.36.97.26.66.76.97.76.56.9

Virginia

6.16.57.16.45.95.65.45.85.65.9

Washington

6.97.36.76.87.16.46.16.86.25.6

West Virginia

6.06.45.86.65.96.86.76.76.36.9

Wisconsin

5.55.75.66.05.65.25.25.65.25.2

Wyoming

9.17.98.59.07.98.911.09.29.39.4

Puerto Rico

5.35.75.96.35.76.46.26.35.76.0

Virgin Islands

5.76.56.07.35.75.86.87.35.35.4

Footnotes
(1) Totals for the United States do not include data for Puerto Rico or the Virgin Islands.
 

 

Last Modified Date: Tuesday, December 06, 2016