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News Release Information

20-145-CHI
Tuesday, February 25, 2020

Contacts

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

Business Employment Dynamics in Michigan — Second Quarter 2019

From March 2019 to June 2019, gross job gains in opening and expanding private-sector establishments in Michigan totaled 211,732, while gross job losses in closing and contracting private-sector establishments numbered 219,402, the U.S. Bureau of Labor Statistics reported today. Assistant Commissioner for Regional Operations Charlene Peiffer noted that the difference between the number of gross job gains and the number of gross job losses yielded a net employment loss of 7,670. During the previous quarter, gross job gains exceeded gross job losses by 18,037. (See chart 1 and table 1.)

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. 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 211,732 gross job gains in the second quarter of 2019 were higher than the 193,954 gross job gains in the first quarter of 2019. The 219,402 gross job losses in the second quarter of 2019 were higher than the 175,917 gross job losses in the first quarter of 2019. (See chart 1.)

Gross job gains represented 5.5 percent of private-sector employment in Michigan in the second quarter of 2019, while nationally gross job gains accounted for 6.0 percent of private-sector employment. (See chart 2.) Michigan’s rate of gross job losses represented 5.8 percent of private-sector employment in the second quarter of 2019. Nationally, gross job losses accounted for 5.9 percent of private-sector employment.

During the second quarter of 2019, gross job gains exceeded gross job losses in 5 of the 11 industry sectors in Michigan. For example, other services created 9,768 jobs in opening and expanding establishments, but lost 7,856 jobs in closing and contracting establishments. The resulting net gain of 1,912 jobs was the largest of any sector that had net employment gains in the second quarter of 2019. In financial activities, 9,237 jobs were created in opening and expanding establishments and 7,609 jobs were lost in closing and contracting establishments, resulting in a net gain of 1,628 jobs. (See table 1.)

In the six industry sectors with net employment losses, professional and business services had the largest decline with the loss of 3,329 jobs.  

Two of five states in the East North Central division (Michigan and Indiana), had gross job losses that exceeded gross job gains. (See table A.) All states in the division had rates of gross job gains that were lower than the 6.0-percent national rate and rates of gross job losses that were lower than the 5.9-percent national rate.

Table A. Private sector gross job gains and losses for the United States, East North Central Division, and East North Central states, June 2019, 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

7,605,0006.07,423,0005.9182,0000.1

East North Central (1)

1,047,9601,051,583-3,623

Illinois

289,8235.6277,7085.312,1150.3

Indiana

140,4185.2155,9555.8-15,537-0.6

Michigan

211,7325.5219,4025.8-7,670-0.3

Ohio

266,6335.6265,1475.71,486-0.1

Wisconsin

139,3545.5133,3715.35,9830.2

Footnotes:
(1) Data were calculated for this release using published gross job gains and gross job losses for states located in the East 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 for third quarter 2019 are scheduled to be released on Wednesday, April 29, 2020.


Technical Note

The Business Employment Dynamics (BED) data are a product of a federal-state cooperative program known as the 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.

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, Michigan, 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)
June
2018
Sept
2018
Dec.
2018
Mar.
2019
June
2019
June
2018
Sept
2018
Dec.
2018
Mar.
2019
June
2019

Total private (1)

Gross job gains

210,759191,034212,257193,954211,7325.55.05.65.15.5

At expanding establishments

183,209159,918178,741161,842183,7864.84.24.74.34.8

At opening establishments

27,55031,11633,51632,11227,9460.70.80.90.80.7

Gross job losses

196,604231,163196,309175,917219,4025.26.25.24.65.8

At contracting establishments

166,332191,271159,448152,223171,8354.45.14.24.04.5

At closing establishments

30,27239,89236,86123,69447,5670.81.11.00.61.3

Net employment change (2)

14,155-40,12915,94818,037-7,6700.3-1.20.40.5-0.3

Construction

Gross job gains

17,95814,77915,48817,22318,29110.48.89.39.910.5

At expanding establishments

16,03112,59212,37313,52716,1539.37.57.47.89.3

At opening establishments

1,9272,1873,1153,6962,1381.11.31.92.11.2

Gross job losses

15,01418,78916,66014,74417,9218.811.210.08.510.3

At contracting establishments

12,86115,27713,65912,99812,7597.59.18.27.57.3

At closing establishments

2,1533,5123,0011,7465,1621.32.11.81.03.0

Net employment change (2)

2,944-4,010-1,1722,4793701.6-2.4-0.71.40.2

Manufacturing

Gross job gains

20,51117,98320,59216,26620,0383.32.93.32.63.1

At expanding establishments

19,26716,84218,92415,04618,4733.12.73.02.42.9

At opening establishments

1,2441,1411,6681,2201,5650.20.20.30.20.2

Gross job losses

16,53219,18816,91817,03322,5062.63.02.72.73.5

At contracting establishments

15,16817,19414,61715,58519,7442.42.72.32.53.1

At closing establishments

1,3641,9942,3011,4482,7620.20.30.40.20.4

Net employment change (2)

3,979-1,2053,674-767-2,4680.7-0.10.6-0.1-0.4

Wholesale trade

Gross job gains

6,8886,0396,7865,9946,8384.03.53.93.54.0

At expanding establishments

6,2305,4626,0515,4316,0503.63.23.53.23.5

At opening establishments

6585777355637880.40.30.40.30.5

Gross job losses

6,0646,8965,9155,7707,2573.54.03.43.44.2

At contracting establishments

5,0305,6544,8464,9545,6432.93.32.82.93.3

At closing establishments

1,0341,2421,0698161,6140.60.70.60.50.9

Net employment change (2)

824-857871224-4190.5-0.50.50.1-0.2

Retail trade

Gross job gains

28,54325,88823,81325,73326,9896.05.55.15.55.8

At expanding establishments

24,44722,42120,39222,26323,8535.14.84.44.85.1

At opening establishments

4,0963,4673,4213,4703,1360.90.70.70.70.7

Gross job losses

29,42931,35427,25924,00030,0726.26.65.85.26.4

At contracting establishments

25,36425,23323,47420,84524,2475.35.35.04.55.2

At closing establishments

4,0656,1213,7853,1555,8250.91.30.80.71.2

Net employment change (2)

-886-5,466-3,4461,733-3,083-0.2-1.1-0.70.3-0.6

Transportation and warehousing

Gross job gains

6,7779,4398,6296,7757,7115.47.56.65.15.7

At expanding establishments

6,1108,4687,2815,7366,3124.96.75.64.34.7

At opening establishments

6679711,3481,0391,3990.50.81.00.81.0

Gross job losses

6,0525,2815,8367,2196,3504.84.24.55.44.7

At contracting establishments

5,2484,4735,0896,6825,0254.23.63.95.03.7

At closing establishments

8048087475371,3250.60.60.60.41.0

Net employment change (2)

7254,1582,793-4441,3610.63.32.1-0.31.0

Information

Gross job gains

2,8193,0102,6852,9442,8835.05.54.85.35.2

At expanding establishments

2,1842,1421,8942,1032,1653.93.93.43.83.9

At opening establishments

6358687918417181.11.61.41.51.3

Gross job losses

2,7723,2713,1542,7233,3095.05.95.74.96.0

At contracting establishments

2,1642,4272,1081,9991,9243.94.43.83.63.5

At closing establishments

6088441,0467241,3851.11.51.91.32.5

Net employment change (2)

47-261-469221-4260.0-0.4-0.90.4-0.8

Financial activities

Gross job gains

8,5097,7588,1647,7599,2374.23.84.03.74.4

At expanding establishments

7,0836,5706,4406,4697,7343.53.23.23.13.7

At opening establishments

1,4261,1881,7241,2901,5030.70.60.80.60.7

Gross job losses

6,6999,2867,8726,7147,6093.24.63.93.23.7

At contracting establishments

5,3747,2936,2325,3934,8902.63.63.12.62.4

At closing establishments

1,3251,9931,6401,3212,7190.61.00.80.61.3

Net employment change (2)

1,810-1,5282921,0451,6281.0-0.80.10.50.7

Professional and business services

Gross job gains

37,78934,50346,20235,40837,6955.65.27.15.35.7

At expanding establishments

33,00629,00239,85130,55032,8854.94.46.14.65.0

At opening establishments

4,7835,5016,3514,8584,8100.70.81.00.70.7

Gross job losses

35,02149,72839,63032,02941,0245.27.66.14.96.2

At contracting establishments

29,67542,61630,71728,33232,2054.46.54.74.34.9

At closing establishments

5,3467,1128,9133,6978,8190.81.11.40.61.3

Net employment change (2)

2,768-15,2256,5723,379-3,3290.4-2.41.00.4-0.5

Education and health services

Gross job gains

23,82322,83023,84621,58324,4533.63.43.63.23.7

At expanding establishments

20,22719,25620,67218,66721,5413.12.93.12.83.3

At opening establishments

3,5963,5743,1742,9162,9120.50.50.50.40.4

Gross job losses

24,58426,19121,60119,80223,9713.74.03.33.03.6

At contracting establishments

21,05020,52817,72616,88719,1613.23.12.72.62.9

At closing establishments

3,5345,6633,8752,9154,8100.50.90.60.40.7

Net employment change (2)

-761-3,3612,2451,781482-0.1-0.60.30.20.1

Leisure and hospitality

Gross job gains

39,32432,20137,38336,20738,6228.97.48.68.38.9

At expanding establishments

33,86224,43129,92628,52933,5507.75.66.96.57.7

At opening establishments

5,4627,7707,4577,6785,0721.21.81.71.81.2

Gross job losses

37,66342,29035,11430,28440,1918.79.88.17.09.1

At contracting establishments

30,83335,53528,58425,66232,1197.18.26.65.97.3

At closing establishments

6,8306,7556,5304,6228,0721.61.61.51.11.8

Net employment change (2)

1,661-10,0892,2695,923-1,5690.2-2.40.51.3-0.2

Other services (3)

Gross job gains

9,5688,5319,1708,0459,7687.66.87.36.47.6

At expanding establishments

8,1116,6657,5466,2068,0616.45.36.04.96.3

At opening establishments

1,4571,8661,6241,8391,7071.21.51.31.51.3

Gross job losses

7,2769,7218,8468,2427,8565.87.77.06.56.2

At contracting establishments

5,8957,7496,1676,5495,5684.76.14.95.24.4

At closing establishments

1,3811,9722,6791,6932,2881.11.62.11.31.8

Net employment change (2)

2,292-1,190324-1971,9121.8-0.90.3-0.11.4

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)
June
2018
Sept.
2018
Dec.
2018
Mar.
2019
June
2019
June
2018
Sept.
2018
Dec.
2018
Mar.
2019
June
2019

United States(1)

6.16.06.35.96.05.86.05.65.55.9

Alabama

5.86.06.36.05.85.75.95.35.56.0

Alaska

10.98.911.010.010.810.710.79.89.010.2

Arizona

6.06.66.25.65.75.95.15.15.55.7

Arkansas

5.06.15.95.25.05.75.65.05.15.7

California

6.76.56.96.36.66.46.25.96.26.4

Colorado

6.86.66.86.67.06.16.86.06.36.2

Connecticut

5.85.35.35.25.85.15.74.95.75.9

Delaware

6.45.76.66.46.06.06.55.65.56.3

District of Columbia

5.65.35.65.45.45.65.55.14.95.5

Florida

6.46.86.46.16.56.15.86.15.66.3

Georgia

6.36.76.36.86.26.46.15.85.76.4

Hawaii

5.35.15.85.44.75.45.45.15.96.1

Idaho

7.36.87.47.57.16.86.96.36.16.7

Illinois

5.65.55.55.25.65.65.85.65.15.3

Indiana

5.55.25.65.95.25.55.45.04.85.8

Iowa

5.75.35.85.15.85.45.75.35.45.6

Kansas

5.75.96.15.45.75.65.75.45.75.7

Kentucky

5.95.86.15.85.85.76.05.45.55.9

Louisiana

6.26.36.25.96.06.56.35.85.96.5

Maine

8.06.17.37.27.57.17.56.76.47.5

Maryland

6.16.36.86.46.35.86.66.45.76.4

Massachusetts

6.15.65.85.76.05.56.15.35.25.7

Michigan

5.55.05.65.15.55.26.25.24.65.8

Minnesota

5.85.55.75.25.85.25.75.45.15.5

Mississippi

5.75.96.55.75.86.05.95.36.26.0

Missouri

5.75.95.85.45.65.76.05.45.35.8

Montana

8.07.28.97.68.07.87.97.28.07.7

Nebraska

5.85.95.95.75.75.85.95.75.65.7

Nevada

6.16.76.66.05.95.85.75.55.46.0

New Hampshire

6.75.76.66.36.46.26.85.75.76.3

New Jersey

6.56.06.45.76.25.86.45.75.65.8

New Mexico

6.76.46.86.46.36.26.46.15.86.3

New York

6.36.16.36.06.05.86.45.75.35.9

North Carolina

6.15.76.76.36.15.76.45.35.15.7

North Dakota

6.76.66.87.16.76.26.66.26.46.7

Ohio

5.65.45.65.55.65.45.85.35.15.7

Oklahoma

6.46.76.55.85.96.36.16.15.86.2

Oregon

6.26.26.76.36.36.36.36.05.86.1

Pennsylvania

5.35.45.35.15.25.15.24.84.85.3

Rhode Island

6.36.26.45.86.46.16.45.75.66.7

South Carolina

7.55.87.46.46.36.76.55.46.06.2

South Dakota

6.16.06.35.76.26.15.75.86.46.0

Tennessee

5.55.85.85.45.55.35.34.94.85.0

Texas

5.96.06.25.55.75.35.45.25.25.3

Utah

6.97.36.97.36.96.46.46.26.26.5

Vermont

7.26.97.46.76.97.17.66.86.37.1

Virginia

6.25.76.36.46.15.86.35.65.55.9

Washington

7.36.26.46.26.66.56.55.65.65.7

West Virginia

6.87.06.36.06.26.46.46.56.66.5

Wisconsin

5.55.15.45.15.55.55.95.04.85.3

Wyoming

8.48.310.08.68.58.48.47.87.89.6

Puerto Rico

7.97.26.07.16.46.25.86.85.15.8

Virgin Islands

13.212.87.911.98.87.05.97.17.46.1

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

 

Last Modified Date: Tuesday, February 25, 2020