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News Release Information

17-1475-CHI
Tuesday, December 19, 2017

Contacts

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

Business Employment Dynamics in Minnesota — First Quarter 2017

From December 2016 to March 2017, gross job gains in Minnesota totaled 142,651, while gross job losses numbered 117,302, 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 25,349. During the previous quarter, gross job gains exceeded gross job losses by 1,557.

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 142,651 gross job gains in March 2017 were above the 140,520 gross job gains in the three-month period ended December 2016. During the past 5 years, gross job gains in Minnesota peaked at 152,006 in June 2014 after a low of 123,115 in March 2014. (See chart 1.) Since March 2012, gross job losses reached a low of 117,302 in March 2017 after reaching a high of 138,963 gross job losses in December 2016. (See chart 1.)

Gross job gains represented 5.8 percent of private sector employment in Minnesota in the quarter ended March 2017, while nationally gross job gains accounted for 6.0 percent of private sector employment. (See chart 2.) Minnesota’s rate of gross job losses represented 4.7 percent of private sector employment in March 2017 and was below the U.S. rate of 5.4 percent. The rate of gross job losses in Minnesota has been at or below the national rate with one exception since March 2012.  

During the first quarter of 2017, gross job gains exceeded gross job losses in 9 of the 11 industry sectors in Minnesota. For example, leisure and hospitality created more than 30,000 jobs in opening and expanding establishments, but lost nearly 21,000 jobs in closing and contracting establishments. The resulting net gain of 9,690 jobs was the largest of any sector in the first quarter of 2017. In the construction industry, approximately 20,000 jobs were created in opening and expanding establishments, and almost 12,000 jobs were lost in closing and contracting establishments, resulting in a net gain of 8,134 jobs. (See table 1.) Three industry sectors—education and health services, retail trade, and manufacturing—each had gross job gains that exceeded gross job losses by more than 1,000. In contrast, the transportation and warehousing sector was the only industry with a net job loss of greater than 1,000. In each of the remaining five industry sectors, the difference between gross job gains and losses was less than 1,000, in the first quarter of 2017.

Minnesota was among the seven states in the West North Central Census division. All states in the division 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 6.0-percent national rate. Four states (Missouri, Nebraska, Kansas, and Minnesota) had rates of gross job gains that were lower than the national rate. Three states (Minnesota, Missouri, and Nebraska) had rates of gross job losses that were below the 5.4-percent national rate. The four remaining states 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 2017, 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

7,328,0006.06,674,0005.4654,0000.6

West North Central (1)

522,571453,68168,890

Iowa

78,7646.171,3245.57,4400.6

Kansas

66,2955.863,0415.63,2540.2

Minnesota

142,6515.8117,3024.725,3491.1

Missouri

138,1745.9116,3244.921,8501.0

Nebraska

48,3505.942,0365.26,3140.7

North Dakota

26,1287.622,9986.73,1300.9

South Dakota

22,2096.420,6565.91,5530.5

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 2017 is scheduled to be released on Wednesday, January 24, 2018.

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). 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 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.
2016
June
2016
Sept
2016
Dec.
2016
Mar.
2017
Mar.
2016
June
2016
Sept
2016
Dec.
2016
Mar.
2017

Total private (1)

 

Gross job gains

132,819143,583148,763140,520142,6515.55.96.15.75.8

At expanding establishments

112,123118,440121,480117,730118,6674.64.95.04.84.8

At opening establishments

20,69625,14327,28322,79023,9840.91.01.10.91.0

Gross job losses

127,554133,901133,973138,963117,3025.25.55.55.74.7

At contracting establishments

104,771111,460113,839114,054103,9724.34.64.74.74.2

At closing establishments

22,78322,44120,13424,90913,3300.90.90.81.00.5

Net employment change (2)

5,2659,68214,7901,55725,3490.30.40.60.01.1

Construction

 

Gross job gains

13,69615,23712,65513,62419,78811.813.111.011.916.5

At expanding establishments

11,14612,07010,28811,25315,5909.610.48.99.813.0

At opening establishments

2,5503,1672,3672,3714,1982.22.72.12.13.5

Gross job losses

14,76813,55014,38014,81211,65412.711.712.512.99.7

At contracting establishments

12,28111,02012,36211,82610,31710.69.510.710.38.6

At closing establishments

2,4872,5302,0182,9861,3372.12.21.82.61.1

Net employment change (2)

-1,0721,687-1,725-1,1888,134-0.91.4-1.5-1.06.8

Manufacturing

 

Gross job gains

8,59810,2129,7329,4939,1202.83.23.13.02.9

At expanding establishments

7,7919,4698,7808,6868,5062.53.02.82.72.7

At opening establishments

8077439528076140.30.20.30.30.2

Gross job losses

9,15310,54110,27110,2277,8482.93.33.33.22.5

At contracting establishments

8,3069,2899,3929,2917,2382.62.93.02.92.3

At closing establishments

8471,2528799366100.30.40.30.30.2

Net employment change (2)

-555-329-539-7341,272-0.1-0.1-0.2-0.20.4

Wholesale trade

 

Gross job gains

5,3735,5615,4834,9145,6914.14.24.23.74.3

At expanding establishments

4,7334,5924,4754,2004,9283.63.53.43.23.7

At opening establishments

6409691,0087147630.50.70.80.50.6

Gross job losses

5,0545,9425,3315,1034,9753.84.54.13.93.8

At contracting establishments

3,9284,7674,4114,0894,1143.03.63.43.13.1

At closing establishments

1,1261,1759201,0148610.80.90.70.80.7

Net employment change (2)

319-381152-1897160.3-0.30.1-0.20.5

Retail trade

 

Gross job gains

17,13419,39219,50815,75316,9365.86.46.55.35.7

At expanding establishments

15,17216,27216,69913,62914,5865.15.45.64.64.9

At opening establishments

1,9623,1202,8092,1242,3500.71.00.90.70.8

Gross job losses

15,09517,09819,97017,42814,8125.15.76.75.85.0

At contracting establishments

12,97915,30318,01615,24013,2814.45.16.05.14.5

At closing establishments

2,1161,7951,9542,1881,5310.70.60.70.70.5

Net employment change (2)

2,0392,294-462-1,6752,1240.70.7-0.2-0.50.7

Transportation and warehousing

 

Gross job gains

4,0725,1856,2897,2964,2924.96.37.58.34.8

At expanding establishments

3,5694,6785,4776,7513,8384.35.76.57.74.3

At opening establishments

5035078125454540.60.61.00.60.5

Gross job losses

4,9294,3204,0854,8705,4356.05.24.85.66.2

At contracting establishments

4,1983,7203,4644,0855,1045.14.54.14.75.8

At closing establishments

7316006217853310.90.70.70.90.4

Net employment change (2)

-8578652,2042,426-1,143-1.11.12.72.7-1.4

Information

 

Gross job gains

2,3631,7942,5781,7821,7514.63.65.13.63.4

At expanding establishments

1,9871,3992,1521,2961,4333.92.84.32.62.8

At opening establishments

3763954264863180.70.80.81.00.6

Gross job losses

2,2062,2871,8682,6382,0304.44.53.75.34.0

At contracting establishments

1,8071,6121,2242,0551,6743.63.22.44.13.3

At closing establishments

3996756445833560.81.31.31.20.7

Net employment change (2)

157-493710-856-2790.2-0.91.4-1.7-0.6

Financial activities

 

Gross job gains

6,5588,0017,1226,6686,3293.74.74.13.83.7

At expanding establishments

5,4816,6605,7385,3725,3613.13.93.33.13.1

At opening establishments

1,0771,3411,3841,2969680.60.80.80.70.6

Gross job losses

5,2936,7535,8435,8715,4212.94.03.43.43.1

At contracting establishments

4,1425,2824,6924,5664,6312.33.12.72.62.6

At closing establishments

1,1511,4711,1511,3057900.60.90.70.80.5

Net employment change (2)

1,2651,2481,2797979080.80.70.70.40.6

Professional and business services

 

Gross job gains

20,02325,70824,97822,52920,5715.66.96.76.05.5

At expanding establishments

16,22820,77720,10918,34716,4934.55.65.44.94.4

At opening establishments

3,7954,9314,8694,1824,0781.11.31.31.11.1

Gross job losses

23,47722,23619,95322,42220,4916.56.15.36.05.5

At contracting establishments

18,68018,35916,48917,51317,8685.25.04.44.74.8

At closing establishments

4,7973,8773,4644,9092,6231.31.10.91.30.7

Net employment change (2)

-3,4543,4725,02510780-0.90.81.40.00.0

Education and health services

 

Gross job gains

18,32816,84523,29122,48517,2993.73.44.64.53.4

At expanding establishments

16,85814,91419,15519,98515,6353.43.03.84.03.1

At opening establishments

1,4701,9314,1362,5001,6640.30.40.80.50.3

Gross job losses

14,70216,06917,93018,56314,4102.93.23.63.72.9

At contracting establishments

12,08913,44115,58415,94513,0682.42.73.13.22.6

At closing establishments

2,6132,6282,3462,6181,3420.50.50.50.50.3

Net employment change (2)

3,6267765,3613,9222,8890.80.21.00.80.5

Leisure and hospitality

 

Gross job gains

26,42025,73926,20825,53930,35210.09.79.89.711.3

At expanding establishments

20,58119,74719,98819,55523,4707.87.47.57.48.7

At opening establishments

5,8395,9926,2205,9846,8822.22.32.32.32.6

Gross job losses

22,49424,39725,90226,48020,6628.59.29.810.07.6

At contracting establishments

17,91319,97621,19220,69418,1796.87.58.07.86.7

At closing establishments

4,5814,4214,7105,7862,4831.71.71.82.20.9

Net employment change (2)

3,9261,342306-9419,6901.50.50.0-0.33.7

Other services (3)

 

Gross job gains

6,2186,7096,9026,0296,4757.37.88.17.07.6

At expanding establishments

5,0805,2215,1414,9755,3856.06.16.05.86.3

At opening establishments

1,1381,4881,7611,0541,0901.31.72.11.21.3

Gross job losses

5,9876,3135,6667,1285,8047.07.46.78.36.8

At contracting establishments

4,6924,8334,5935,7905,0005.55.75.46.75.9

At closing establishments

1,2951,4801,0731,3388041.51.71.31.60.9

Net employment change (2)

2313961,236-1,0996710.30.41.4-1.30.8

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.
 

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.
2016
June
2016
Sept.
2016
Dec.
2016
Mar.
2017
Mar.
2016
June
2016
Sept.
2016
Dec.
2016
Mar.
2017

United States(1)

6.06.26.46.26.05.76.05.85.95.4

Alabama

5.95.86.25.86.15.55.95.85.85.2

Alaska

9.610.49.19.89.49.611.211.210.09.8

Arizona

5.96.27.26.05.85.76.05.25.55.4

Arkansas

5.55.46.25.95.65.45.95.65.45.0

California

6.66.96.96.96.76.36.66.26.36.0

Colorado

6.67.07.16.66.86.16.56.26.56.2

Connecticut

5.35.45.25.15.55.05.45.45.25.1

Delaware

6.66.86.36.26.66.56.76.66.25.9

District of Columbia

5.35.96.25.65.75.65.85.85.64.7

Florida

6.26.57.46.76.15.85.95.86.15.5

Georgia

6.26.96.76.66.35.86.45.95.85.8

Hawaii

5.25.46.05.05.15.05.84.85.04.8

Idaho

8.27.27.97.57.96.57.07.36.76.3

Illinois

5.66.05.76.15.85.65.95.75.65.4

Indiana

5.55.45.85.45.75.35.25.15.25.1

Iowa

6.15.76.15.76.15.46.25.85.95.5

Kansas

5.85.76.25.95.85.96.35.65.75.6

Kentucky

5.96.26.86.15.76.06.06.35.85.4

Louisiana

6.06.06.85.96.46.76.96.56.55.9

Maine

7.27.76.77.47.26.96.87.47.16.4

Maryland

6.26.46.66.66.16.06.25.96.25.9

Massachusetts

5.46.05.75.65.55.15.25.45.45.1

Michigan

5.35.95.75.55.64.95.45.55.45.0

Minnesota

5.55.96.15.75.85.25.55.55.74.7

Mississippi

5.95.76.36.35.76.26.55.55.65.9

Missouri

5.65.75.75.75.95.35.45.45.64.9

Montana

7.97.97.67.88.17.38.67.77.57.1

Nebraska

5.95.76.45.75.95.55.95.96.25.2

Nevada

6.46.56.86.26.65.95.85.55.65.2

New Hampshire

6.06.56.46.35.75.85.96.35.95.6

New Jersey

5.86.46.36.45.56.05.75.95.95.8

New Mexico

6.46.47.06.66.46.46.76.26.56.2

New York

6.26.36.36.16.25.85.85.95.95.7

North Carolina

6.16.36.36.36.25.65.85.95.75.5

North Dakota

6.76.88.26.77.68.98.97.17.76.7

Ohio

5.55.65.75.75.75.25.75.75.45.1

Oklahoma

5.75.86.36.56.36.36.86.06.36.5

Oregon

7.16.86.96.66.95.86.66.46.35.7

Pennsylvania

5.45.35.65.45.25.35.45.15.15.0

Rhode Island

5.86.15.65.76.35.96.25.95.85.9

South Carolina

6.06.36.36.56.06.05.85.65.45.6

South Dakota

6.26.46.46.06.46.16.26.26.15.9

Tennessee

5.45.85.95.85.15.25.45.25.14.9

Texas

5.45.86.25.95.85.85.55.55.45.2

Utah

7.36.77.46.87.76.06.46.76.46.1

Vermont

6.77.47.27.06.66.97.27.47.06.8

Virginia

5.96.56.26.26.06.06.16.15.95.6

Washington

7.17.36.77.16.86.06.06.66.75.6

West Virginia

5.95.86.56.46.36.96.96.46.26.4

Wisconsin

5.65.75.55.55.95.25.75.65.34.8

Wyoming

8.17.78.58.88.89.410.68.88.78.1

Puerto Rico

5.75.65.85.85.16.05.55.75.45.7

Virgin Islands

6.06.56.26.05.35.85.76.86.05.5

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

 

Last Modified Date: Tuesday, December 19, 2017