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News Release Information

21-139-CHI
Friday, March 12, 2021

Contacts

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

Business Employment Dynamics in Michigan — Second Quarter 2020

From March 2020 to June 2020, gross job gains from opening and expanding private-sector establishments in Michigan were 141,099, while gross job losses from closing and contracting private-sector establishments were 731,502, 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 loss of 590,403 jobs in the private sector during the second quarter of 2020. During the previous quarter, gross job losses exceeded gross job gains by 25,676. (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 second quarter of 2020, gross job gains represented 4.0 percent of private-sector employment in Michigan; nationally, gross job gains accounted for 4.8 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 Michigan, gross job gains at expanding establishments totaled 108,867 in the second quarter of 2020, a decrease of 48,994 jobs compared to the previous quarter. (See table 1.) Opening establishments accounted for 32,232 jobs gained in the second quarter of 2020, an increase of 329 jobs from the previous quarter.


Gross job losses

In the second quarter of 2020, gross job losses represented 20.7 percent of private-sector employment in Michigan; nationally, gross job losses accounted for 17.0 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 Michigan, contracting establishments lost 630,383 jobs in the second quarter of 2020, an increase of 455,903 jobs from the prior quarter. Closing establishments lost 101,119 jobs, an increase of 60,159 jobs from the previous quarter.


Industries

Gross job losses exceeded gross job gains in all 11 industry sectors in Michigan in the second quarter of 2020. Leisure and hospitality had the largest over-the-quarter net job decrease, with a loss of 168,828 jobs. This was the result of 18,410 gross job gains and 187,238 gross job losses. Professional and business services showed the second-largest net loss (-98,454 jobs), followed by education and health services (-72,732), retail trade (-71,723) and manufacturing (-71,487). Job losses among the remaining sectors ranged from 29,944 in other services to 7,377 in information.

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 third quarter 2020 are scheduled to be released on Wednesday, April 28, 2021.

Coronavirus (COVID-19) Effect on Second Quarter 2020 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, Michigan, 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)
June
2019
Sept
2019
Dec.
2019
Mar.
2020
June
2020
June
2019
Sept
2019
Dec.
2019
Mar.
2020
June
2020

Total private (1)

Gross job gains

210,494 192,884 218,726 189,764 141,099 5.5 5.1 5.8 5.0 4.0

At expanding establishments

182,341 158,463 178,834 157,861 108,867 4.8 4.2 4.7 4.2 3.1

At opening establishments

28,153 34,421 39,892 31,903 32,232 0.7 0.9 1.1 0.8 0.9

Gross job losses

217,822 221,284 199,952 215,440 731,502 5.7 5.9 5.3 5.7 20.7

At contracting establishments

171,799 184,595 163,574 174,480 630,383 4.5 4.9 4.3 4.6 17.8

At closing establishments

46,023 36,689 36,378 40,960 101,119 1.2 1.0 1.0 1.1 2.9

Net employment change (2)

-7,328 -28,400 18,774 -25,676 -590,403 -0.2 -0.8 0.5 -0.7 -16.7

Construction

Gross job gains

18,358 16,352 17,312 20,408 14,503 10.6 9.5 10.0 11.4 8.4

At expanding establishments

16,143 13,361 13,548 17,268 11,240 9.3 7.8 7.8 9.6 6.5

At opening establishments

2,215 2,991 3,764 3,140 3,263 1.3 1.7 2.2 1.8 1.9

Gross job losses

17,615 15,598 17,387 15,856 33,585 10.2 9.1 10.0 8.8 19.4

At contracting establishments

12,813 12,372 14,081 12,393 26,647 7.4 7.2 8.1 6.9 15.4

At closing establishments

4,802 3,226 3,306 3,463 6,938 2.8 1.9 1.9 1.9 4.0

Net employment change (2)

743 754 -75 4,552 -19,082 0.4 0.4 0.0 2.6 -11.0

Manufacturing

Gross job gains

19,789 16,666 17,087 15,193 8,047 3.2 2.7 2.8 2.4 1.4

At expanding establishments

18,183 14,868 14,755 13,842 6,854 2.9 2.4 2.4 2.2 1.2

At opening establishments

1,606 1,798 2,332 1,351 1,193 0.3 0.3 0.4 0.2 0.2

Gross job losses

22,410 22,190 20,784 19,842 79,534 3.5 3.5 3.3 3.2 13.6

At contracting establishments

19,713 20,179 18,965 17,886 76,066 3.1 3.2 3.0 2.9 13.0

At closing establishments

2,697 2,011 1,819 1,956 3,468 0.4 0.3 0.3 0.3 0.6

Net employment change (2)

-2,621 -5,524 -3,697 -4,649 -71,487 -0.3 -0.8 -0.5 -0.8 -12.2

Wholesale trade

Gross job gains

6,861 5,982 6,289 6,018 4,220 4.0 3.5 3.7 3.5 2.6

At expanding establishments

6,068 5,180 5,556 5,424 3,275 3.5 3.0 3.3 3.2 2.0

At opening establishments

793 802 733 594 945 0.5 0.5 0.4 0.3 0.6

Gross job losses

7,090 6,714 6,187 6,352 22,131 4.1 4.0 3.7 3.7 13.5

At contracting establishments

5,540 5,601 5,075 5,109 20,136 3.2 3.3 3.0 3.0 12.3

At closing establishments

1,550 1,113 1,112 1,243 1,995 0.9 0.7 0.7 0.7 1.2

Net employment change (2)

-229 -732 102 -334 -17,911 -0.1 -0.5 0.0 -0.2 -10.9

Retail trade

Gross job gains

27,164 24,940 25,933 27,889 22,116 5.8 5.4 5.6 6.1 5.1

At expanding establishments

24,003 21,159 22,153 24,766 19,200 5.1 4.6 4.8 5.4 4.4

At opening establishments

3,161 3,781 3,780 3,123 2,916 0.7 0.8 0.8 0.7 0.7

Gross job losses

29,993 29,967 27,136 25,718 93,839 6.4 6.4 5.9 5.5 21.4

At contracting establishments

24,299 26,117 23,051 21,435 80,430 5.2 5.6 5.0 4.6 18.3

At closing establishments

5,694 3,850 4,085 4,283 13,409 1.2 0.8 0.9 0.9 3.1

Net employment change (2)

-2,829 -5,027 -1,203 2,171 -71,723 -0.6 -1.0 -0.3 0.6 -16.3

Transportation and warehousing

Gross job gains

7,776 8,752 11,854 6,579 11,442 5.7 6.4 8.4 4.6 8.4

At expanding establishments

6,368 7,536 10,560 5,043 10,652 4.7 5.5 7.5 3.5 7.8

At opening establishments

1,408 1,216 1,294 1,536 790 1.0 0.9 0.9 1.1 0.6

Gross job losses

6,336 6,415 5,631 9,498 27,114 4.7 4.8 4.0 6.6 19.8

At contracting establishments

5,050 5,521 4,369 8,334 24,832 3.7 4.1 3.1 5.8 18.1

At closing establishments

1,286 894 1,262 1,164 2,282 1.0 0.7 0.9 0.8 1.7

Net employment change (2)

1,440 2,337 6,223 -2,919 -15,672 1.0 1.6 4.4 -2.0 -11.4

Information

Gross job gains

2,922 3,271 3,536 3,144 1,994 5.3 5.9 6.4 5.7 3.9

At expanding establishments

2,200 1,833 2,077 2,248 1,321 4.0 3.3 3.8 4.1 2.6

At opening establishments

722 1,438 1,459 896 673 1.3 2.6 2.6 1.6 1.3

Gross job losses

3,137 3,021 3,357 3,356 9,371 5.7 5.5 6.1 6.1 18.1

At contracting establishments

1,949 2,191 2,208 2,642 7,675 3.5 4.0 4.0 4.8 14.8

At closing establishments

1,188 830 1,149 714 1,696 2.2 1.5 2.1 1.3 3.3

Net employment change (2)

-215 250 179 -212 -7,377 -0.4 0.4 0.3 -0.4 -14.2

Financial activities

Gross job gains

9,230 8,824 9,624 8,971 6,148 4.4 4.3 4.5 4.2 3.0

At expanding establishments

7,715 7,456 7,667 7,694 4,678 3.7 3.6 3.6 3.6 2.3

At opening establishments

1,515 1,368 1,957 1,277 1,470 0.7 0.7 0.9 0.6 0.7

Gross job losses

7,601 7,777 7,160 7,897 17,449 3.7 3.7 3.4 3.7 8.4

At contracting establishments

4,934 6,077 5,443 6,111 14,309 2.4 2.9 2.6 2.9 6.9

At closing establishments

2,667 1,700 1,717 1,786 3,140 1.3 0.8 0.8 0.8 1.5

Net employment change (2)

1,629 1,047 2,464 1,074 -11,301 0.7 0.6 1.1 0.5 -5.4

Professional and business services

Gross job gains

37,939 35,549 44,258 34,542 27,913 5.8 5.4 6.7 5.3 4.5

At expanding establishments

32,919 28,175 36,821 29,575 20,985 5.0 4.3 5.6 4.5 3.4

At opening establishments

5,020 7,374 7,437 4,967 6,928 0.8 1.1 1.1 0.8 1.1

Gross job losses

40,902 47,090 38,589 35,755 126,367 6.2 7.2 5.9 5.5 20.6

At contracting establishments

32,315 39,981 31,783 28,683 113,200 4.9 6.1 4.9 4.4 18.5

At closing establishments

8,587 7,109 6,806 7,072 13,167 1.3 1.1 1.0 1.1 2.1

Net employment change (2)

-2,963 -11,541 5,669 -1,213 -98,454 -0.4 -1.8 0.8 -0.2 -16.1

Education and health services

Gross job gains

23,405 23,783 23,338 19,998 12,807 3.6 3.6 3.5 3.0 2.0

At expanding establishments

20,420 20,604 18,862 16,214 8,784 3.1 3.1 2.8 2.4 1.4

At opening establishments

2,985 3,179 4,476 3,784 4,023 0.5 0.5 0.7 0.6 0.6

Gross job losses

23,592 21,796 21,871 25,768 85,539 3.6 3.3 3.3 3.8 13.6

At contracting establishments

18,877 17,770 17,520 20,813 76,295 2.9 2.7 2.6 3.1 12.1

At closing establishments

4,715 4,026 4,351 4,955 9,244 0.7 0.6 0.7 0.7 1.5

Net employment change (2)

-187 1,987 1,467 -5,770 -72,732 0.0 0.3 0.2 -0.8 -11.6

Leisure and hospitality

Gross job gains

38,552 32,645 39,099 29,973 18,410 8.8 7.6 9.1 6.9 5.2

At expanding establishments

33,415 26,259 31,383 22,911 12,293 7.6 6.1 7.3 5.3 3.5

At opening establishments

5,137 6,386 7,716 7,062 6,117 1.2 1.5 1.8 1.6 1.7

Gross job losses

40,067 42,717 36,371 45,426 187,238 9.1 9.9 8.4 10.6 52.7

At contracting establishments

32,155 34,618 29,049 36,216 152,520 7.3 8.0 6.7 8.5 42.9

At closing establishments

7,912 8,099 7,322 9,210 34,718 1.8 1.9 1.7 2.1 9.8

Net employment change (2)

-1,515 -10,072 2,728 -15,453 -168,828 -0.3 -2.3 0.7 -3.7 -47.5

Other services (3)

Gross job gains

9,826 7,618 9,569 7,677 5,716 7.8 6.0 7.5 6.1 5.1

At expanding establishments

8,094 5,869 7,225 5,837 3,837 6.4 4.6 5.7 4.6 3.4

At opening establishments

1,732 1,749 2,344 1,840 1,879 1.4 1.4 1.8 1.5 1.7

Gross job losses

7,935 9,532 8,142 10,502 35,660 6.3 7.5 6.4 8.3 31.9

At contracting establishments

5,695 7,327 6,189 7,839 27,700 4.5 5.8 4.9 6.2 24.8

At closing establishments

2,240 2,205 1,953 2,663 7,960 1.8 1.7 1.5 2.1 7.1

Net employment change (2)

1,891 -1,914 1,427 -2,825 -29,944 1.5 -1.5 1.1 -2.2 -26.8

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

United States(1)

6.1 5.9 6.2 5.5 4.8 5.9 5.8 5.5 6.1 17.0

Alabama

5.9 5.8 6.2 5.5 4.8 5.9 5.9 5.5 5.9 12.6

Alaska

10.7 9.6 10.3 9.2 6.9 10.1 10.1 10.2 9.5 24.5

Arizona

5.7 6.3 6.4 5.6 5.7 5.6 4.9 5.2 5.9 11.7

Arkansas

5.0 5.6 6.5 5.1 4.8 5.7 5.8 4.9 5.5 12.0

California

6.6 6.3 6.8 6.1 5.2 6.4 6.0 6.0 6.7 18.6

Colorado

7.0 6.6 6.7 6.3 5.8 6.2 6.4 6.2 7.0 14.9

Connecticut

5.8 5.5 5.5 5.2 4.3 5.8 5.8 5.6 5.9 19.7

Delaware

6.0 6.2 6.7 6.2 4.9 6.6 6.3 6.2 6.6 17.7

District of Columbia

5.4 5.5 5.4 5.2 3.3 5.5 5.3 4.7 5.3 22.4

Florida

6.5 6.6 6.6 5.4 6.1 6.3 5.8 5.9 6.2 13.9

Georgia

6.1 6.2 6.5 5.6 5.4 6.5 6.0 5.5 5.9 15.0

Hawaii

4.8 5.6 5.7 5.2 3.6 5.8 5.2 5.2 5.8 29.8

Idaho

7.1 7.0 7.7 7.6 6.4 6.7 6.8 6.3 6.1 11.2

Illinois

5.6 5.0 5.6 5.0 4.6 5.3 5.6 5.2 6.0 18.4

Indiana

5.1 5.4 6.0 4.9 4.7 5.9 5.6 5.1 6.0 13.7

Iowa

5.8 5.3 5.8 5.2 4.4 5.8 5.7 5.5 5.9 13.0

Kansas

5.7 5.6 6.3 5.4 5.0 5.8 5.7 5.7 6.0 13.3

Kentucky

5.8 5.9 6.2 5.3 4.6 6.0 5.7 5.6 6.1 15.3

Louisiana

6.2 5.9 5.9 5.3 4.5 6.5 6.1 5.7 6.3 16.9

Maine

7.4 6.5 7.3 6.4 5.4 7.4 7.3 6.9 7.0 21.7

Maryland

6.4 6.2 6.4 5.7 4.7 6.5 6.3 5.9 6.7 21.9

Massachusetts

6.0 5.3 5.8 5.2 3.7 5.6 5.9 5.6 6.0 24.2

Michigan

5.5 5.1 5.8 5.0 4.0 5.7 5.9 5.3 5.7 20.7

Minnesota

5.8 5.4 5.8 5.0 4.3 5.5 5.8 5.6 5.6 17.6

Mississippi

5.8 5.7 6.2 5.6 5.1 6.1 5.7 5.6 6.2 12.9

Missouri

5.7 5.8 6.2 5.2 4.7 5.8 5.8 5.3 5.7 14.3

Montana

8.1 7.4 8.6 7.7 6.8 7.7 7.7 7.2 7.7 13.8

Nebraska

5.7 5.7 6.2 5.8 4.9 5.7 5.5 5.8 6.1 12.1

Nevada

6.0 6.1 6.8 5.4 5.3 6.2 5.5 5.0 6.3 29.2

New Hampshire

6.4 5.8 6.6 6.0 4.5 6.3 6.6 6.0 6.4 18.8

New Jersey

6.2 6.0 6.5 5.7 4.6 5.9 6.2 5.8 6.3 28.1

New Mexico

6.3 6.8 7.0 6.1 4.5 6.5 6.1 6.3 6.5 17.6

New York

6.1 5.8 6.0 5.5 3.9 5.9 5.9 5.7 6.4 26.9

North Carolina

6.0 5.8 6.3 5.8 4.8 5.9 6.0 5.4 5.7 14.5

North Dakota

6.7 6.5 6.7 6.8 5.2 6.7 7.1 6.6 7.0 17.2

Ohio

5.7 5.3 5.7 5.1 4.5 5.7 5.9 5.3 5.6 14.4

Oklahoma

6.0 6.4 6.5 5.4 5.6 6.3 6.2 6.2 6.7 12.3

Oregon

6.3 6.2 6.7 6.2 5.0 6.1 6.2 5.8 6.5 18.4

Pennsylvania

5.3 5.2 5.4 4.9 3.6 5.4 5.1 4.9 5.6 18.2

Rhode Island

6.3 6.0 6.5 6.1 4.5 6.5 6.2 5.9 6.5 25.2

South Carolina

6.4 6.0 6.5 5.5 5.1 6.2 5.9 5.9 6.6 14.9

South Dakota

6.2 5.9 6.4 6.0 5.1 5.9 6.0 5.8 6.6 11.6

Tennessee

5.5 5.5 5.7 4.9 4.4 5.2 5.1 5.0 5.3 13.7

Texas

5.8 5.9 6.0 5.0 4.7 5.3 5.3 5.1 5.5 13.6

Utah

7.0 6.8 6.8 6.6 6.5 6.6 6.3 6.3 6.4 10.9

Vermont

7.1 6.3 6.9 5.8 4.6 7.1 7.6 6.4 7.6 18.5

Virginia

6.1 5.5 6.5 5.6 4.7 5.8 6.3 5.5 6.1 18.2

Washington

6.6 6.1 6.6 7.4 4.9 5.8 6.1 5.8 7.4 16.9

West Virginia

6.2 5.9 6.2 6.0 5.1 6.6 6.7 7.1 6.8 13.8

Wisconsin

5.5 4.8 5.4 5.0 4.4 5.3 5.9 5.0 5.3 14.4

Wyoming

8.5 8.6 9.4 8.6 6.4 9.5 8.9 8.7 9.3 18.1

Puerto Rico

6.4 5.9 5.4 5.0 4.0 5.8 5.5 4.9 5.2 16.9

Virgin Islands

8.9 12.0 10.3 7.2 5.3 6.9 6.4 7.3 8.3 19.8

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

 

Last Modified Date: Friday, March 12, 2021