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News Release Information

23-2349-CHI
Tuesday, November 07, 2023

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

Business Employment Dynamics in Minnesota — First Quarter 2023

From December 2022 to March 2023, gross job gains from opening and expanding private-sector establishments in Minnesota were 142,357, while gross job losses from closing and contracting private-sector establishments were 121,788, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Jason Palmer noted that the difference between the number of gross job gains and the number of gross job losses yielded a net employment gain of 20,569 jobs in the private sector during the first quarter of 2023. During the previous quarter, gross job gains exceeded gross job losses by 1,605. (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 first quarter of 2023, gross job gains represented 5.7 percent of private-sector employment in Minnesota; nationally, gross job gains accounted for 6.2 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 Minnesota, gross job gains at expanding establishments totaled 115,607 in the first quarter of 2023, a decrease of 2,757 jobs compared to the previous quarter. (See table 1.) Opening establishments accounted for 26,750 jobs gained in the first quarter of 2023, a decrease of 857 jobs from the previous quarter.


Gross job losses

In the first quarter of 2023, gross job losses represented 4.9 percent of private-sector employment in Minnesota; nationally, gross job losses accounted for 5.4 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 Minnesota, contracting establishments lost 102,948 jobs in the first quarter of 2023, a decrease of 9,705 jobs from the prior quarter. Closing establishments lost 18,840 jobs, a decrease of 12,873 jobs from the previous quarter.


Industries

Gross job gains exceeded gross job losses in 8 of the 11 industry sectors in Minnesota in the first quarter of 2023. Leisure and hospitality had the largest over-the-quarter net job increase, with a gain of 5,423 jobs. This was the result of 27,466 gross job gains and 22,043 gross job losses. The education and health services industry had a net gain of 5,094 jobs. Transportation and warehousing showed a net loss of 896 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 Second Quarter 2023 are scheduled to be released on Tuesday, January 30, 2024.

Revisions to Business Employment Dynamics (BED) Data

Data in this release contain annual revisions in accordance with standard procedures. These revisions include the previous 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 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 units with positive third month employment in the previous quarter and either not reported, or reported with zero employment, 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; Telecommunications Relay Service: 7-1-1.

Table 1. Private sector gross job gains and losses by industry, Minnesota, seasonally adjusted
CategoryGross job gains and losses
(3 months ended)
Gross job gains and losses
as a percent of employment
(3 months ended)
Mar.
2022
June
2022
Sept.
2022
Dec.
2022
Mar.
2023
Mar.
2022
June
2022
Sept.
2022
Dec.
2022
Mar.
2023

Total private (1)

Gross job gains

150,770158,220161,515145,971142,3576.26.46.55.95.7

At expanding establishments

127,172129,288123,558118,364115,6075.25.25.04.84.6

At opening establishments

23,59828,93237,95727,60726,7501.01.21.51.11.1

Gross job losses

131,747158,206146,246144,366121,7885.46.45.95.84.9

At contracting establishments

109,376121,227118,878112,653102,9484.54.94.84.54.1

At closing establishments

22,37136,97927,36831,71318,8400.91.51.11.30.8

Net employment change (2)

19,0231415,2691,60520,5690.80.00.60.10.8

Construction

Gross job gains

13,94016,45413,29513,58415,46510.512.310.010.311.5

At expanding establishments

11,50113,3919,83010,52212,0098.710.07.48.08.9

At opening establishments

2,4393,0633,4653,0623,4561.82.32.62.32.6

Gross job losses

13,21314,25615,57316,97712,01010.010.711.813.08.9

At contracting establishments

10,86910,26012,16213,41910,6798.27.79.210.37.9

At closing establishments

2,3443,9963,4113,5581,3311.83.02.62.71.0

Net employment change (2)

7272,198-2,278-3,3933,4550.51.6-1.8-2.72.6

Manufacturing

Gross job gains

11,16110,83812,55511,61210,6283.53.43.93.63.3

At expanding establishments

10,5529,88011,04210,7279,6733.33.13.43.33.0

At opening establishments

6099581,5138859550.20.30.50.30.3

Gross job losses

7,55411,07810,5908,8289,7852.43.53.32.73.0

At contracting establishments

6,6559,5529,6197,8158,8352.13.03.02.42.7

At closing establishments

8991,5269711,0139500.30.50.30.30.3

Net employment change (2)

3,607-2401,9652,7848431.1-0.10.60.90.3

Wholesale trade

Gross job gains

6,4726,3247,7146,0545,3195.04.85.94.64.0

At expanding establishments

5,5264,8655,2404,8704,1404.33.74.03.73.1

At opening establishments

9461,4592,4741,1841,1790.71.11.90.90.9

Gross job losses

5,4976,2765,6895,3014,8094.24.84.34.03.6

At contracting establishments

4,0454,1394,3213,6883,8813.13.23.32.82.9

At closing establishments

1,4522,1371,3681,6139281.11.61.01.20.7

Net employment change (2)

975482,0257535100.80.01.60.60.4

Retail trade

Gross job gains

18,55516,80317,11815,61316,6706.65.96.15.65.9

At expanding establishments

17,20114,71014,71413,95714,6616.15.25.25.05.2

At opening establishments

1,3542,0932,4041,6562,0090.50.70.90.60.7

Gross job losses

12,51617,63819,78916,52313,3764.56.27.05.94.7

At contracting establishments

10,90514,83317,80014,00411,8613.95.26.35.04.2

At closing establishments

1,6112,8051,9892,5191,5150.61.00.70.90.5

Net employment change (2)

6,039-835-2,671-9103,2942.1-0.3-0.9-0.31.2

Transportation and warehousing

Gross job gains

7,2105,3747,0177,7175,3377.55.67.47.95.5

At expanding establishments

6,2304,4706,0746,7654,6056.54.76.46.94.7

At opening establishments

9809049439527321.00.91.01.00.8

Gross job losses

6,3266,8734,8705,2806,2336.57.25.15.36.4

At contracting establishments

5,7105,7634,1023,9755,6485.96.04.34.05.8

At closing establishments

6161,1107681,3055850.61.20.81.30.6

Net employment change (2)

884-1,4992,1472,437-8961.0-1.62.32.6-0.9

Information

Gross job gains

4,2262,4862,8582,2001,8149.55.56.44.94.0

At expanding establishments

3,7111,7631,9301,3361,2288.33.94.33.02.7

At opening establishments

5157239288645861.21.62.11.91.3

Gross job losses

3,9142,8662,0522,6392,0598.86.44.65.84.6

At contracting establishments

3,3861,9721,3501,8501,7097.64.43.04.13.8

At closing establishments

5288947027893501.22.01.61.70.8

Net employment change (2)

312-380806-439-2450.7-0.91.8-0.9-0.6

Financial activities

Gross job gains

7,09211,7457,9256,5065,6344.06.74.53.73.2

At expanding establishments

5,92710,0695,5934,7694,4093.35.73.22.72.5

At opening establishments

1,1651,6762,3321,7371,2250.71.01.31.00.7

Gross job losses

8,47312,5217,7298,4285,8564.87.14.44.83.3

At contracting establishments

6,94010,2036,1346,5974,7313.95.83.53.82.7

At closing establishments

1,5332,3181,5951,8311,1250.91.30.91.00.6

Net employment change (2)

-1,381-776196-1,922-222-0.8-0.40.1-1.1-0.1

Professional and business services

Gross job gains

24,00325,64429,94621,02221,5316.36.77.85.45.6

At expanding establishments

18,59519,93021,15516,39316,2694.95.25.54.24.2

At opening establishments

5,4085,7148,7914,6295,2621.41.52.31.21.4

Gross job losses

22,03626,83423,87226,83119,4915.87.06.27.05.0

At contracting establishments

17,89020,61318,55921,15115,9904.75.44.85.54.1

At closing establishments

4,1466,2215,3135,6803,5011.11.61.41.50.9

Net employment change (2)

1,967-1,1906,074-5,8092,0400.5-0.31.6-1.60.6

Education and health services

Gross job gains

20,87922,86626,41423,33122,2004.04.45.04.44.2

At expanding establishments

18,62918,76120,64318,73419,0853.63.63.93.53.6

At opening establishments

2,2504,1055,7714,5973,1150.40.81.10.90.6

Gross job losses

20,95722,55718,95020,71217,1064.04.33.63.93.2

At contracting establishments

17,33816,71615,22614,33413,9303.33.22.92.72.6

At closing establishments

3,6195,8413,7246,3783,1760.71.10.71.20.6

Net employment change (2)

-783097,4642,6195,0940.00.11.40.51.0

Leisure and hospitality

Gross job gains

27,50228,62625,39727,91427,46611.111.39.910.910.5

At expanding establishments

21,41322,72819,51122,06221,2238.69.07.68.68.1

At opening establishments

6,0895,8985,8865,8526,2432.52.32.32.32.4

Gross job losses

22,46725,65228,00423,37222,0439.110.211.09.18.4

At contracting establishments

18,75219,10722,39218,46818,4357.67.68.87.27.0

At closing establishments

3,7156,5455,6124,9043,6081.52.62.21.91.4

Net employment change (2)

5,0352,974-2,6074,5425,4232.01.1-1.11.82.1

Other services (3)

Gross job gains

6,6587,4027,4386,8376,9088.49.29.18.38.3

At expanding establishments

5,2855,7354,8795,3185,5526.77.16.06.56.7

At opening establishments

1,3731,6672,5591,5191,3561.72.13.11.81.6

Gross job losses

5,4576,4046,4846,0285,4956.97.97.97.36.6

At contracting establishments

4,0153,7924,9984,4784,0995.14.76.15.44.9

At closing establishments

1,4422,6121,4861,5501,3961.83.21.81.91.7

Net employment change (2)

1,2019989548091,4131.51.31.21.01.7

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.
2022
June
2022
Sept.
2022
Dec.
2022
Mar.
2023
Mar.
2022
June
2022
Sept.
2022
Dec.
2022
Mar.
2023

United States(1)

6.76.66.96.36.25.56.25.95.95.4

Alabama

6.46.66.96.66.45.96.25.96.15.5

Alaska

10.210.28.510.910.49.59.010.49.28.0

Arizona

6.76.57.16.65.95.76.35.56.05.4

Arkansas

6.36.16.56.25.85.65.55.25.25.0

California

7.36.86.86.66.15.76.76.26.66.4

Colorado

7.57.37.07.67.26.36.67.16.96.5

Connecticut

6.36.46.35.96.15.36.36.25.95.3

Delaware

7.36.58.67.06.75.56.96.27.55.2

District of Columbia

6.16.17.25.65.95.16.35.05.54.8

Florida

6.57.57.86.26.35.76.35.66.05.6

Georgia

7.76.87.16.76.25.86.25.95.95.8

Hawaii

6.36.06.46.05.55.15.54.94.95.0

Idaho

8.67.17.88.47.96.28.47.56.97.5

Illinois

6.35.95.85.45.85.25.55.35.14.8

Indiana

5.95.76.45.75.54.95.95.55.25.0

Iowa

6.55.95.96.46.05.46.25.96.25.4

Kansas

6.46.57.46.36.15.57.15.55.65.4

Kentucky

6.76.36.66.06.15.76.55.45.34.9

Louisiana

6.76.76.96.16.36.36.45.76.25.6

Maine

8.57.27.67.47.76.38.07.36.86.2

Maryland

6.76.57.46.66.86.96.96.06.95.6

Massachusetts

6.86.16.25.55.85.15.56.15.84.7

Michigan

6.36.05.75.95.74.95.95.85.24.9

Minnesota

6.26.46.55.95.75.46.45.95.84.9

Mississippi

6.36.67.26.86.16.26.76.36.25.7

Missouri

6.56.26.86.16.55.45.96.35.85.1

Montana

9.38.28.79.28.77.69.17.87.87.1

Nebraska

6.86.47.16.06.35.96.56.15.75.1

Nevada

6.86.97.46.46.25.55.75.86.15.7

New Hampshire

7.76.76.96.77.05.66.76.76.05.9

New Jersey

7.16.66.86.86.15.76.26.45.95.7

New Mexico

7.66.78.06.76.86.27.15.96.25.9

New York

6.87.16.65.96.55.46.15.96.05.1

North Carolina

6.66.46.76.66.45.46.15.85.75.3

North Dakota

7.56.97.66.47.66.46.56.36.75.6

Ohio

6.45.95.85.95.84.95.95.55.74.9

Oklahoma

6.46.77.46.66.36.06.15.65.95.3

Oregon

7.66.06.76.57.35.67.06.06.26.1

Pennsylvania

6.35.56.15.55.54.85.65.15.24.6

Rhode Island

7.97.16.76.97.56.06.77.36.45.9

South Carolina

7.16.67.36.96.86.16.25.66.25.8

South Dakota

7.76.67.36.57.26.16.56.46.55.9

Tennessee

6.66.27.05.85.94.86.25.55.65.0

Texas

6.36.67.26.25.95.35.85.35.35.0

Utah

7.97.07.56.97.05.96.66.86.66.2

Vermont

8.87.57.27.88.26.47.67.87.06.0

Virginia

6.66.57.56.26.25.86.76.15.85.2

Washington

7.37.07.25.96.45.47.26.35.35.5

West Virginia

7.46.78.16.67.16.18.06.96.45.3

Wisconsin

6.66.06.06.06.04.86.05.85.54.9

Wyoming

9.28.49.29.28.98.39.28.47.97.8

Puerto Rico

7.46.76.26.65.15.06.15.36.15.7

Virgin Islands

7.48.08.55.97.58.89.25.54.76.5

Footnotes
(1) Totals for the United States do not include data for Puerto Rico or the Virgin Islands. The sum of the states will not necessarily add to the U.S. total because of the independent seasonal adjustment of each state.

 

Last Modified Date: Tuesday, November 07, 2023