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News Release Information

21-1766-CHI
Friday, November 26, 2021

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

Business Employment Dynamics in Minnesota — First Quarter 2021

From December 2020 to March 2021, gross job gains from opening and expanding private-sector establishments in Minnesota were 215,284, while gross job losses from closing and contracting private-sector establishments were 113,923, 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 101,361 jobs in the private sector during the first quarter of 2021. During the previous quarter, gross job gains exceeded gross job losses by 1,930. (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 2021, gross job gains represented 9.2 percent of private-sector employment in Minnesota; nationally, gross job gains accounted for 6.8 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 181,799 in the first quarter of 2021, an increase of 51,055 jobs compared to the previous quarter. (See table 1.) Opening establishments accounted for 33,485 jobs gained in the first quarter of 2021, an increase of 4,697 jobs from the previous quarter.


Gross job losses

In the first quarter of 2021, 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 93,869 jobs in the first quarter of 2021, a decrease of 35,957 jobs from the prior quarter. Closing establishments lost 20,054 jobs, a decrease of 7,722 jobs from the previous quarter.


Industries

Gross job gains exceeded gross job losses in 9 of the 11 industry sectors in Minnesota in the first quarter of 2021. Leisure and hospitality had the largest over-the-quarter net job increase, with a gain of 76,602 jobs. This was the result of 88,809 gross job gains and 12,207 gross job losses. The professional and business services industry had a net gain of 6,286 jobs. Transportation and warehousing showed a net loss of 657 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 2021 are scheduled to be released on Wednesday, January 26, 2022.

Coronavirus (COVID-19) Effect on First Quarter 2021 Business Employment Dynamics

Data collection and processing methods have been impacted because of the COVID-19 pandemic. More detail can be found at www.bls.gov/covid19/effects-of-covid-19-pandemic-on-business-employment-dynamics.htm.


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, Minnesota, 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)
Mar.
2020
June
2020
Sept
2020
Dec.
2020
Mar.
2021
Mar.
2020
June
2020
Sept
2020
Dec.
2020
Mar.
2021

Total private (1)

Gross job gains

125,431 99,807 204,782 159,532 215,284 5.0 4.2 9.0 6.9 9.2

At expanding establishments

104,921 79,272 175,823 130,744 181,799 4.2 3.3 7.7 5.7 7.8

At opening establishments

20,510 20,535 28,959 28,788 33,485 0.8 0.9 1.3 1.2 1.4

Gross job losses

142,000 417,638 122,620 157,602 113,923 5.7 17.6 5.4 6.8 4.9

At contracting establishments

119,476 367,905 100,289 129,826 93,869 4.8 15.5 4.4 5.6 4.0

At closing establishments

22,524 49,733 22,331 27,776 20,054 0.9 2.1 1.0 1.2 0.9

Net employment change (2)

-16,569 -317,831 82,162 1,930 101,361 -0.7 -13.4 3.6 0.1 4.3

Construction

Gross job gains

14,264 14,085 12,789 18,139 18,380 11.1 11.1 10.6 14.8 14.2

At expanding establishments

11,445 11,229 10,176 15,117 15,287 8.9 8.8 8.4 12.3 11.8

At opening establishments

2,819 2,856 2,613 3,022 3,093 2.2 2.3 2.2 2.5 2.4

Gross job losses

12,980 23,055 15,207 13,326 14,424 10.0 18.2 12.5 10.8 11.2

At contracting establishments

10,724 20,276 12,900 10,650 11,983 8.3 16.0 10.6 8.6 9.3

At closing establishments

2,256 2,779 2,307 2,676 2,441 1.7 2.2 1.9 2.2 1.9

Net employment change (2)

1,284 -8,970 -2,418 4,813 3,956 1.1 -7.1 -1.9 4.0 3.0

Manufacturing

Gross job gains

8,325 6,159 12,744 12,512 11,294 2.5 2.0 4.2 4.1 3.6

At expanding establishments

7,892 5,538 11,773 11,562 10,621 2.4 1.8 3.9 3.8 3.4

At opening establishments

433 621 971 950 673 0.1 0.2 0.3 0.3 0.2

Gross job losses

9,012 29,747 11,301 9,384 8,519 2.8 9.5 3.7 3.1 2.7

At contracting establishments

8,185 28,424 10,342 8,424 7,530 2.5 9.1 3.4 2.8 2.4

At closing establishments

827 1,323 959 960 989 0.3 0.4 0.3 0.3 0.3

Net employment change (2)

-687 -23,588 1,443 3,128 2,775 -0.3 -7.5 0.5 1.0 0.9

Wholesale trade

Gross job gains

5,090 3,656 6,036 5,890 5,282 3.9 2.9 4.9 4.8 4.3

At expanding establishments

4,321 3,014 5,288 4,748 4,577 3.3 2.4 4.3 3.9 3.7

At opening establishments

769 642 748 1,142 705 0.6 0.5 0.6 0.9 0.6

Gross job losses

5,269 11,347 5,404 4,197 4,480 4.1 9.0 4.4 3.4 3.6

At contracting establishments

4,258 10,317 4,172 3,458 3,701 3.3 8.2 3.4 2.8 3.0

At closing establishments

1,011 1,030 1,232 739 779 0.8 0.8 1.0 0.6 0.6

Net employment change (2)

-179 -7,691 632 1,693 802 -0.2 -6.1 0.5 1.4 0.7

Retail trade

Gross job gains

16,704 15,145 30,269 19,133 17,247 5.7 5.4 11.1 6.8 6.1

At expanding establishments

15,250 13,744 27,855 17,172 15,319 5.2 4.9 10.2 6.1 5.4

At opening establishments

1,454 1,401 2,414 1,961 1,928 0.5 0.5 0.9 0.7 0.7

Gross job losses

16,784 48,947 16,111 15,142 15,437 5.7 17.5 5.9 5.4 5.5

At contracting establishments

14,925 45,650 14,115 13,207 13,754 5.1 16.3 5.2 4.7 4.9

At closing establishments

1,859 3,297 1,996 1,935 1,683 0.6 1.2 0.7 0.7 0.6

Net employment change (2)

-80 -33,802 14,158 3,991 1,810 0.0 -12.1 5.2 1.4 0.6

Transportation and warehousing

Gross job gains

4,514 6,347 7,950 9,510 6,615 4.8 7.4 9.6 10.9 7.5

At expanding establishments

3,935 5,693 7,186 8,516 6,009 4.2 6.6 8.7 9.8 6.8

At opening establishments

579 654 764 994 606 0.6 0.8 0.9 1.1 0.7

Gross job losses

7,381 16,052 5,840 5,617 7,272 7.9 18.5 7.1 6.4 8.3

At contracting establishments

6,608 14,725 4,885 5,141 6,577 7.1 17.0 5.9 5.9 7.5

At closing establishments

773 1,327 955 476 695 0.8 1.5 1.2 0.5 0.8

Net employment change (2)

-2,867 -9,705 2,110 3,893 -657 -3.1 -11.1 2.5 4.5 -0.8

Information

Gross job gains

1,811 1,213 2,606 1,914 2,153 3.9 2.7 6.1 4.6 5.1

At expanding establishments

1,533 879 1,873 1,249 1,732 3.3 2.0 4.4 3.0 4.1

At opening establishments

278 334 733 665 421 0.6 0.7 1.7 1.6 1.0

Gross job losses

2,232 5,338 1,849 2,533 1,729 4.8 12.0 4.3 6.1 4.1

At contracting establishments

1,777 3,968 1,369 2,088 1,352 3.8 8.9 3.2 5.0 3.2

At closing establishments

455 1,370 480 445 377 1.0 3.1 1.1 1.1 0.9

Net employment change (2)

-421 -4,125 757 -619 424 -0.9 -9.3 1.8 -1.5 1.0

Financial activities

Gross job gains

5,398 5,487 6,755 7,101 5,489 3.0 3.1 3.8 4.0 3.1

At expanding establishments

4,701 4,446 5,648 5,482 4,488 2.6 2.5 3.2 3.1 2.5

At opening establishments

697 1,041 1,107 1,619 1,001 0.4 0.6 0.6 0.9 0.6

Gross job losses

5,859 9,253 6,035 7,184 5,682 3.2 5.2 3.4 4.0 3.2

At contracting establishments

4,516 8,084 4,655 5,908 4,389 2.5 4.5 2.6 3.3 2.5

At closing establishments

1,343 1,169 1,380 1,276 1,293 0.7 0.7 0.8 0.7 0.7

Net employment change (2)

-461 -3,766 720 -83 -193 -0.2 -2.1 0.4 0.0 -0.1

Professional and business services

Gross job gains

18,402 16,762 27,776 29,413 23,971 4.8 4.6 8.0 8.2 6.6

At expanding establishments

15,268 12,680 23,361 23,964 19,670 4.0 3.5 6.7 6.7 5.4

At opening establishments

3,134 4,082 4,415 5,449 4,301 0.8 1.1 1.3 1.5 1.2

Gross job losses

21,861 55,058 20,350 18,984 17,685 5.8 15.2 5.8 5.3 4.8

At contracting establishments

17,310 50,196 15,989 14,887 13,621 4.6 13.9 4.6 4.2 3.7

At closing establishments

4,551 4,862 4,361 4,097 4,064 1.2 1.3 1.2 1.1 1.1

Net employment change (2)

-3,459 -38,296 7,426 10,429 6,286 -1.0 -10.6 2.2 2.9 1.8

Education and health services

Gross job gains

19,651 12,210 33,659 30,222 22,588 3.7 2.4 6.7 5.9 4.4

At expanding establishments

15,534 9,040 30,016 23,243 20,079 2.9 1.8 6.0 4.5 3.9

At opening establishments

4,117 3,170 3,643 6,979 2,509 0.8 0.6 0.7 1.4 0.5

Gross job losses

18,229 60,955 18,227 18,335 18,023 3.4 11.8 3.6 3.5 3.4

At contracting establishments

15,349 56,741 15,152 15,066 14,690 2.9 11.0 3.0 2.9 2.8

At closing establishments

2,880 4,214 3,075 3,269 3,333 0.5 0.8 0.6 0.6 0.6

Net employment change (2)

1,422 -48,745 15,432 11,887 4,565 0.3 -9.4 3.1 2.4 1.0

Leisure and hospitality

Gross job gains

22,181 12,381 47,564 15,984 88,809 8.1 5.5 24.5 8.8 47.9

At expanding establishments

17,560 8,261 39,150 12,187 72,887 6.4 3.7 20.2 6.7 39.3

At opening establishments

4,621 4,120 8,414 3,797 15,922 1.7 1.8 4.3 2.1 8.6

Gross job losses

32,456 129,579 14,897 50,052 12,207 11.9 57.5 7.7 27.4 6.6

At contracting establishments

27,529 105,881 11,039 40,527 9,491 10.1 47.0 5.7 22.2 5.1

At closing establishments

4,927 23,698 3,858 9,525 2,716 1.8 10.5 2.0 5.2 1.5

Net employment change (2)

-10,275 -117,198 32,667 -34,068 76,602 -3.8 -52.0 16.8 -18.6 41.3

Other services (3)

Gross job gains

5,854 3,255 11,201 5,600 10,488 6.9 4.2 15.8 7.8 14.2

At expanding establishments

4,743 2,172 8,644 4,101 8,623 5.6 2.8 12.2 5.7 11.7

At opening establishments

1,111 1,083 2,557 1,499 1,865 1.3 1.4 3.6 2.1 2.5

Gross job losses

6,350 21,357 4,410 9,557 4,898 7.4 28.0 6.2 13.2 6.7

At contracting establishments

5,206 17,298 3,140 7,661 3,719 6.1 22.7 4.4 10.6 5.1

At closing establishments

1,144 4,059 1,270 1,896 1,179 1.3 5.3 1.8 2.6 1.6

Net employment change (2)

-496 -18,102 6,791 -3,957 5,590 -0.5 -23.8 9.6 -5.4 7.5

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
Category Gross job gains as a percent of employment
(3 months ended)
Gross job losses as a percent of employment
(3 months ended)
Dec.
2019
Mar.
2020
June
2020
Sept.
2020
Dec.
2020
Dec.
2019
Mar.
2020
June
2020
Sept.
2020
Dec.
2020

United States(1)

6.2 5.5 4.8 9.4 7.4 5.5 6.1 17.0 6.0 5.7

Alabama

6.2 5.5 4.8 7.8 7.8 5.5 5.9 12.6 5.9 5.0

Alaska

10.3 9.2 6.9 12.2 13.4 10.2 9.5 24.5 9.9 7.7

Arizona

6.4 5.6 5.7 7.9 7.4 5.2 5.9 11.7 6.2 4.9

Arkansas

6.5 5.1 4.8 7.5 7.1 4.9 5.5 12.0 5.6 5.1

California

6.8 6.1 5.2 8.7 8.4 6.0 6.7 18.6 7.3 6.2

Colorado

6.7 6.3 5.8 10.0 7.5 6.2 7.0 14.9 6.3 7.2

Connecticut

5.5 5.2 4.3 11.2 6.5 5.6 5.9 19.7 5.1 5.8

Delaware

6.7 6.2 4.9 10.3 6.7 6.2 6.6 17.7 6.3 5.7

District of Columbia

5.4 5.2 3.3 8.3 5.2 4.7 5.3 22.4 5.8 5.5

Florida

6.6 5.4 6.1 9.5 7.6 5.9 6.2 13.9 6.8 5.6

Georgia

6.5 5.6 5.4 9.2 7.8 5.5 5.9 15.0 6.4 5.2

Hawaii

5.7 5.2 3.6 7.4 14.7 5.2 5.8 29.8 12.7 4.6

Idaho

7.7 7.6 6.4 8.4 8.7 6.3 6.1 11.2 6.5 6.1

Illinois

5.6 5.0 4.6 9.7 6.5 5.2 6.0 18.4 5.6 6.1

Indiana

6.0 4.9 4.7 8.3 6.9 5.1 6.0 13.7 5.4 5.0

Iowa

5.8 5.2 4.4 7.4 6.8 5.5 5.9 13.0 5.6 5.1

Kansas

6.3 5.4 5.0 7.9 7.0 5.7 6.0 13.3 6.0 6.0

Kentucky

6.2 5.3 4.6 8.8 6.8 5.6 6.1 15.3 5.0 5.4

Louisiana

5.9 5.3 4.5 8.8 8.7 5.7 6.3 16.9 7.2 5.5

Maine

7.3 6.4 5.4 12.0 8.5 6.9 7.0 21.7 6.0 6.3

Maryland

6.4 5.7 4.7 11.0 7.1 5.9 6.7 21.9 5.9 5.9

Massachusetts

5.8 5.2 3.7 12.5 7.0 5.6 6.0 24.2 5.6 5.6

Michigan

5.8 5.0 4.0 10.9 6.8 5.3 5.7 20.7 4.8 7.0

Minnesota

5.8 5.0 4.3 9.0 7.0 5.6 5.6 17.6 5.4 6.9

Mississippi

6.2 5.6 5.1 8.7 7.9 5.6 6.2 12.9 5.5 4.9

Missouri

6.2 5.2 4.7 8.5 7.2 5.3 5.7 14.3 5.7 5.3

Montana

8.6 7.7 6.8 9.9 9.3 7.2 7.7 13.8 7.2 6.8

Nebraska

6.2 5.8 4.9 8.1 6.8 5.8 6.1 12.1 5.9 5.6

Nevada

6.8 5.4 5.3 12.8 8.9 5.0 6.3 29.2 6.4 5.7

New Hampshire

6.6 6.0 4.5 11.9 7.4 6.0 6.4 18.8 5.1 6.5

New Jersey

6.5 5.7 4.6 15.7 8.1 5.8 6.3 28.1 5.8 5.9

New Mexico

7.0 6.1 4.5 8.3 7.1 6.3 6.5 17.6 6.0 7.6

New York

6.0 5.5 3.9 13.3 7.4 5.7 6.4 26.9 5.9 6.4

North Carolina

6.3 5.8 4.8 8.5 7.8 5.4 5.7 14.5 5.6 5.1

North Dakota

6.7 6.8 5.2 8.8 7.2 6.6 7.0 17.2 6.9 7.1

Ohio

5.7 5.1 4.5 7.7 6.6 5.3 5.6 14.4 5.3 5.2

Oklahoma

6.5 5.4 5.6 6.8 7.8 6.2 6.7 12.3 6.4 5.6

Oregon

6.7 6.2 5.0 9.0 7.4 5.8 6.5 18.4 6.2 6.5

Pennsylvania

5.4 4.9 3.6 10.3 6.2 4.9 5.6 18.2 5.0 5.3

Rhode Island

6.5 6.1 4.5 12.9 7.5 5.9 6.5 25.2 5.3 7.1

South Carolina

6.5 5.5 5.1 8.8 8.1 5.9 6.6 14.9 6.1 5.3

South Dakota

6.4 6.0 5.1 8.6 7.2 5.8 6.6 11.6 5.5 6.2

Tennessee

5.7 4.9 4.4 8.1 7.5 5.0 5.3 13.7 5.4 4.6

Texas

6.0 5.0 4.7 7.2 7.5 5.1 5.5 13.6 6.0 4.8

Utah

6.8 6.6 6.5 9.1 8.1 6.3 6.4 10.9 6.2 5.5

Vermont

6.9 5.8 4.6 12.3 7.6 6.4 7.6 18.5 5.7 7.9

Virginia

6.5 5.6 4.7 10.2 7.0 5.5 6.1 18.2 5.3 5.3

Washington

6.6 7.4 4.9 8.9 7.1 5.8 7.4 16.9 6.2 6.0

West Virginia

6.2 6.0 5.1 8.8 7.4 7.1 6.8 13.8 7.0 6.2

Wisconsin

5.4 5.0 4.4 7.6 6.3 5.0 5.3 14.4 5.2 5.1

Wyoming

9.4 8.6 6.4 10.7 10.0 8.7 9.3 18.1 7.7 7.6

Puerto Rico

5.4 5.0 4.0 11.0 6.6 4.9 5.2 16.9 5.1 4.9

Virgin Islands

10.3 7.2 5.3 8.4 8.9 7.3 8.3 19.8 12.3 5.4

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

 

Last Modified Date: Friday, November 26, 2021